Jubilant Foodworks surges with the launch of ‘Burgerpizza’

Jubilant Foodworks’ Domino’s brand, a leader in Pizza segment, launches an entirely new and innovative product ‘Burgerpizza’. Jubilant Foodworks and its subsidiary operates Domino’s brand with exclusive rights in India, Nepal, Bangladesh and Sri Lanka.

The announcement by the company was made before the market hours and thereby the stock opened 11 rupees upwards from the previous close at Rs 1186.75 on July 13. Jubilant Foodworks has been generating 75 per cent revenues from the sale of Pizzas. Revenues in FY15 accounted for Rs 1542.72 crores as against Rs 1294.04 crores in FY14, an increase of 19 per cent.

Earlier last month, Jubilant Foodworks’ shares witnessed a sharp downfall after the food regulator alleged the use of chemicals named potassium bromate and potassium iodate as food additives in company’s products that causes cancer. Another blow for the company was when the Kerala Government recently announced 14.5 per cent tax on the junk foods like burgers, pizzas and pastas. Jubilant has nearly 15 stores running in Kerala.

However, the launch of burgerpizza would definitely be incremental to their business which is prepared according to the Indian palette. The product is low calorised and reasonably priced at Rs 89 and available in veg and non-veg variants in nearly 1000 outlets across India for now.

The stock of Jubilant Foodworks is rated as ‘outperform’ by the rating agency Credit Suisse and carries positive fundamentals. The stock is trading just above its 100 days EMA support.