Jubilant Foodworks shares rally 6% after Q1 results; Bernstein sees Popeyes as strong growth driver. Should you buy?

Jubilant FoodWorks shares surged by 6% on July 23, 2025, following the release of its first-quarter results for FY27. The company reported a 14% year-on-year increase in revenue to Rs 2,570 crore, with EBITDA growing 10% to Rs 360 crore. The rally was largely driven by strong performance from its Popeyes India business, which delivered 97% revenue growth, while its flagship Domino's India chain saw a 2.5% same-store sales growth.

The positive sentiment was reinforced by a bullish note from brokerage firm Bernstein, which highlighted Popeyes as a key growth driver and maintained a positive outlook on the stock. The brokerage also pointed to the potential for improved margins and sustained growth in the coming quarters. This performance has strengthened investor confidence in Jubilant FoodWorks' ability to execute its expansion strategy and drive profitability.

Investors should keep an eye on the company's ability to sustain this growth momentum, particularly the performance of Popeyes and the impact of new store openings. While the current rally is encouraging, investors are advised to monitor future quarterly results and any updates on margin expansion before making any investment decisions.