According to Prabhudas Lilladher's research report dated May 20, 2026, the brokerage has issued a buy rating on Jubilant FoodWorks with a target price of ₹576. The recommendation is based on the company's strong performance across its key brands and management's confidence in future growth prospects. The latest report confirms the brokerage's view that JUBI is best placed in the QSR space to gain from expected improvement in consumer demand.
As reported by Prabhudas Lilladher, Q4FY26 like-for-like (LFL) sales came broadly in-line with estimates, while the company achieved healthy gross margin expansion driven by superior SKU mix and lower overheads. The performance led to EBITDA and PAT beating analyst expectations, demonstrating operational efficiency improvements across the business. The latest results show steady demand outlook despite some headwinds from higher inflation.
According to the research report, Popeyes continued to show strong traction with FY26 same-store sales growth of 28%, with momentum sustaining into Q1FY27. However, the company faces challenges as healthy performance in Domino's continues to be partially offset by softer trends in Coffy amidst stiff competition. Management commentary remained healthy with Popeyes expected to contribute 1-1.5% to overall growth in the near term.
As reported by Prabhudas Lilladher, JUBI plans to open approximately 300 stores (including Popeyes) in FY27. The company's DP Eurasia business is also showing improvement, with the business now fully servicing acquisition-related debt through internal cash flows. Despite near-term margin pressures from wage inflation and geopolitical headwinds, management reiterated confidence in delivering ~200bps EBITDA margin expansion over FY24 adjusted EBITDA.
According to the brokerage's analysis, estimates 33.1% standalone EPS CAGR over FY26-28 on a low base. The valuation methodology assigns 26x FY28 EV/EBITDA to standalone numbers arriving at ₹508 per share value and 22x PAT to DP Eurasia at ₹68 per share based on CY26 earnings. The SOTP based target price of ₹576 (revised from ₹584 earlier) reflects the company's strong positioning in the QSR space to benefit from expected improvement in consumer demand.
