Chicken Burst Boosts Jubilant FoodWorks - Emkay Says ‘ADD’, But Should You Dig In?

Emkay Global has reiterated its ‘ADD’ rating on Jubilant FoodWorks (JUBI), raising the target price to Rs 825 from Rs 775—a 6.5% upward revision, largely driven by a rollover to Jun-27E EBITDA and consistent growth outperformance.

“JUBI is truly acing the innovation game, which is driving the company’s growth outperformance (growth of ~15% in FY25 vs 5–12% for most peers),” Emkay noted in its latest research report.

Premium Play with 5-Flavor Chicken Burst
The latest innovation pushing growth is JUBI’s ‘5-flavor Chicken Burst’ pizza—a premium two-layered chicken experience. With a keema-stuffed base and toppings of rashers with five distinct sauces, the offering is priced at Rs 849 (Rs 649 post-discount), well above its current gourmet segment priced at Rs 629 and non-veg pizzas in the Rs 370-500 range.
This offering is a part of JUBI’s broader platform strategy, which includes:
Chicken Feast (Rs 100–200),
Cheesiken (Chicken/Rice) (Rs 100–200), and
Entry-level meals (~Rs 100).
The premium positioning is aimed at capturing higher wallet share as consumption sentiment improves with anticipated tax and interest rate cuts in FY26."

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Tech-Driven Expansion & Speed
JUBI is set to scale over 1,000 Domino’s stores between FY25–28, enabled by its robust proprietary tech platforms that reduce food costs and enhance delivery speeds—targeting 20-minute delivery in India’s top-7 metros.

The backend and frontend infrastructure investments are ensuring faster execution and cost efficiencies, while product innovation remains a core growth lever.

New Food Platforms Could Unlock ₹10 Billion Annual Sales
JUBI is sharply focused on five new food platforms—including chicken, rice, and value snacking—that the brokerage believes could scale up to ₹10 billion in annual sales. Accelerated innovation is already driving a turnaround in performance, according to the report.

Loyalty-First, App-Driven Strategy
A major differentiator is JUBI’s in-house app and loyalty ecosystem. The company boasts:
~31 million loyalty members
75% of orders now placed via the in-house app by loyalty members

“JUBI believes its loyalty program is reducing the churn and increasing the order frequency, thereby leading to a higher lifetime value for consumers,” Emkay stated.
JUBI’s app now offers a dynamic, food-first UX tailored for festivals, personalized discounts, and menu sequencing based on user profiles—setting it apart in the QSR space.

Promoter Stake Concerns Eased
Interestingly, Emkay also flagged that a key overhang—potential promoter stake liquidation—may now be behind, further supporting investor sentiment and offering re-rating potential in the stock.

With growth drivers firmly in place and innovation at its core, Jubilant FoodWorks is positioning itself for a sustained upward trajectory, both in market share and valuation.
 

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