Jubilant Foods – JUBI IN ::Headroom for penetration led growth is substantial::CLSA

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Jubilant Foods – JUBI IN (O-PF)
Business description:
Master franchisee for Domino’s in India. Dunkin’ Donuts added
recently
End market for Domino’s growing at 20%+ with broad growth
and a penetration led shift towards takeaway and chain formats
Rising middle class income, evolving attitudes and a young
population drive this
Its strong brand and retail model generate healthy margins and
return ratios
Store portfolio over the 380 mark
News and updates
Financials
Price: Rs673
Mkt Cap: US$962m
Avg T/O: US$19.0m
Jubilant plans to increase its pace of store expansion
to 80 in FY12 against 70-72/year in FY10-11
The company is targeting same store sales growth of
20% in FY12
The rollout of the Dunkin’ Donuts will be gradual with
the first store opening in 4QFY12 and 80-100 stores
over five years
Domino’s has introduced credit card payments