The 378 pizza stores to be supplemented by Dunkin Donuts Cafes in December 11 grossed Rs 57000/- per store per day for the 90 days of this quarter on an average (based on reported sales of Rs 1.940 billion or $485 million) and obviously improved profits 86% on a yoy basis.

The category is jumping hoops and Jubilant Foods is going to add another 80 stores this year building on 72 last year to fold in another 2500 odd pizzas every day. Assuming it stays with cosmo and Teir I&II locations. Also the new Dunkin Donuts are likely in smaller towns and maintain the sales growth of 56%. Profits of $48.3 million come to Rs 5682 per store per day and we feel the industry growth rate of 25-30% could apply to sales at existing stores only, which all the added pies would be pure profit adding margins.

Thankfully though, the pie's run on the exchange has finally been aborted because the DD franchise is unlikely to be an upmarket winner and the new competition its first taste in India. Current pricing of the new IPO was much a function of the scarcity of good consumption stocks in this global economy no. 2

Posted via email from The investment blog on Post