HSBC has upgraded Jubilant Foodworks to a buy rating with a target price of ₹660 per share, citing the recent correction in the stock, improving franchise quality, moderating competition, and operational initiatives that are beginning to show traction.
The brokerage said the upgrade reflects better risk-reward at current valuations, supported by stabilising demand trends across key brands, including Domino’s. While same-store sales growth (SSSG) in H2FY26 is expected to be lower than H1, HSBC said the projected 5% SSSG is still a “decent outcome” relative to other consumer peers who continue to face demand softness.
HSBC highlighted that competitive intensity in the quick-service restaurant (QSR) space has eased, allowing Jubilant to retain market share and improve unit economics. New menu initiatives, digital upgrades, and operational efficiencies are also helping the company navigate a challenging consumption environment.
The brokerage said Jubilant’s medium-term outlook remains stable, driven by steady store expansion, cost control measures, and an improving demand environment.
Disclaimer: The views and recommendations above are those of HSBC. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
