Global brokerage Goldman Sachs (GS) has maintained its Neutral rating on Jubilant Foodworks with a target price of ₹650, slightly above the current market price (CMP) of ₹623.35. The firm acknowledged that the company’s performance continues to be in line with expectations, though near-term upside appears capped due to valuation concerns and a likely tapering of growth in the coming quarters.

Jubilant Foodworks, India’s leading quick-service restaurant (QSR) operator and the master franchisee for Domino’s Pizza, reported a like-to-like (LFL) sales growth of 9.1% in India for Q2, which Goldman Sachs noted as the highest among major QSR players.

💡 Key Highlights From Goldman Sachs’ Analysis

• 📈 India’s Q2 LFL growth at 9.1% is in line with estimates and the strongest in the QSR space.
• ⚠️ LFL growth may moderate sharply in upcoming quarters as high base impact sets in.
• 💰 Valuation remains stretched, leaving little headroom for upside despite operational resilience.

Goldman Sachs believes that Jubilant’s consistent operational execution and brand leadership remain strengths, but near-term expansion of margins and earnings could be limited by competitive discounting and rising input costs.

Jubilant continues to expand its delivery footprint across emerging markets while enhancing its digital ordering platforms. Despite robust volume trends, analysts remain cautious about whether such growth is sustainable once the high base effect from FY25 starts weighing on year-over-year comparisons.

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Goldman Sachs also noted that Jubilant’s balance between store expansion and cost control remains well-managed. However, with consumption normalizing post-pandemic and discretionary spending plateauing, same-store growth rates could soften sequentially. The brokerage expects upcoming quarters to reflect moderation as the company faces higher comparables from last year’s strong festive period.

🎯 Analysts emphasized that margin improvement will likely depend on the pace of premium menu introductions and cost efficiencies in logistics and delivery.

From a broader sectoral view, the QSR industry remains attractive due to expanding urban demand and increasing digital adoption. Yet, valuation comfort remains a challenge for most listed players. Goldman Sachs believes that while Jubilant’s fundamentals are intact, current market pricing already factors in much of its medium-term growth potential.

Investor Takeaway: Goldman Sachs’ Neutral rating suggests a balanced outlook for Jubilant Foodworks. Strong India growth and brand equity support its fundamentals, but rich valuations and potential growth tapering limit near-term re-rating prospects.

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