Jubilant FoodWorks Vs Devyani International: In the hustle & bustle of everyday life, time is of the absolute essence and food that is quickly made available to your liking is the absolute need of the hour. In this report, we will talk about two such Companies that make sure to bring you their delicious cuisine, from their kitchen to your table within a couple of minutes.

In this article on Jubilant FoodWorks Vs Devyani International, we will talk about two QSR stocks and analyze which one has better prospects.

Jubilant FoodWorks Vs Devyani International

We will be looking at two such Indian Companies that are partnered up with international food brands to serve their appetizing meals to us Indian consumers.

We will be looking at who these Companies have partnered up with, how both franchisees hold up against each other & finally conclude on which is a better pick.

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Company Overview – Jubilant FoodWorks

Jubilant Foodworks logo

Jubilant FoodWorks is India’s largest food service company, a subsidiary Company of the Jubilant Bhartia Group. The Company was Incorporated in 1995, it holds exclusive master franchise rights from Domino’s Pizza Inc. to develop and operate the Pizza brand in India, Sri Lanka, Bangladesh, and Nepal.

The Company also holds the exclusive rights to develop and operate Dunkin’ and Popeyes restaurants in India, Bangladesh, Nepal, and Bhutan. In 2019, Jubilant also ventured into the Chinese cuisine segment with its own restaurant brand, Hong’s Kitchen

Jubilant’s Franchise Partners

Jubilant became the first food service company in India to surpass the turnover of Rs. 5000 Cr in FY23. It also opened 250 new Domino’s stores in a single year, a record for any Domino’s franchise around the world. 

They commissioned their largest commissary in Bengaluru, which will fulfill a total of 750 stores across the city. The Company is also planning to commission another mega commissary in Mumbai next year. Both these units are funded with a CAPEX of Rs. 520 Cr.

Popeyes made its debut in India with the launch of its first restaurant in Bengaluru in 2022, followed by rapid expansion to 12 other restaurants in the city. The Company has now expanded its presence in Chennai by opening the largest Popeyes restaurant in India.

During the year, the Dunkin brand unveiled a new restaurant design in India following the acquisition of Dunkin’ by Inspire Brands in 2020. 8 out of 21 Dunkin’ stores have now transitioned with the ‘Coffee-first’ theme. The stores are expected to provide a café-like experience at a great value.

Company Overview – Devyani International

Jubilant FoodWorks Vs Devyani International - Devyani International logo

Devyani International Limited (DIL) was established in 1991. It is one of India’s largest operators of quick-service restaurants (QSRs). DIL is a franchise partner of Yum! In India. They operate KFC and Pizza Hut in India, as well as in Nigeria (only KFC) and Nepal. They are also the sole franchisee for the Costa Coffee brand and stores in India. 

The Company operates 543 KFC Stores, 510 Pizza Huts, and 112 Costa Coffee, opening 305 Net New Units in total across all three brands, taking the total store count to 1,243. The Company is shifting focus towards expanding in non-metros with 53% of their current stores situated in non-metros. 

Devyani’s Franchise Partners


KFC owns the elephant share in Devyani’s portfolio bringing in revenues worth Rs. 1771 Cr, which is nearly 69% of their total revenue. At the same time, average daily sales per store climbed from Rs. 1.13 Lakh in FY22 to Rs. 1.17 Lakh in FY23, with online sales constituting 64% of its total sales.

Pizza Hut

Pizza Hut is the 2nd biggest revenue generator to the Company bringing in Rs. 700 Cr in FY23, or 27% of their total revenue. It grew its revenue by 32% over the previous year, with an average daily sales per store of Rs. 42,000.

Costa Coffee

The Coffee brand generated a revenue of Rs. 102 Cr in FY23, a spectacular growth of 1.48x from Rs. 41 Cr in FY22. Its daily sales per store grew to Rs. 35,000. To cash in on the coffee culture, the Company added as many as 57 stores in a single year, reaching a total of 112 stores in the country. 

Industry Overview

The Global food service industry is estimated at $2.6 trillion. India currently stands 9th on that list, with an estimated value of $51 billion. Over the last decade, the Indian food services market (Industry) has grown at a CAGR of 9%, largely mirroring the nominal GDP growth of the country. 

The Indian food service industry can be broadly classified into two segments: Organized and unorganized sectors. The unorganized sector accounts for the lion’s share of the market. However, the organized sector also exhibited substantial growth rates since 2014.

The QSR chain market, which both these Companies operate, is expected to be the fastest-growing sub-segment in the entire food service market, expanding at an impressive CAGR of 23% between FY20 and FY25. 

The growth can be attributed to favorable changes in consumer behavior and demographics, increasing formalization of the market, and large food service chains expanding their footprint in smaller Indian cities. Moreover, middle-class households in Tier II and III cities have increased their annual spending on fast-food restaurants by 108% over the past two years.

Ever since COVID-19, on-premise consumption has been returning, however, off-premise consumption, that is takeaway or ordering on the food delivery apps is here to stay. The last two years have also led to non-home food becoming a lot more acceptable outside of special occasions, especially in the smaller towns.

Jubilant FoodWorks Vs Devyani International – Financials

Revenue & Net Profit

Jubilant reported its FY23 revenue at Rs. 5096 Cr, growing by over 18% from Rs. 4,331 Cr in FY22. The Company has been growing at a sustainable rate of 10% CAGR in 5 Years. Devyani grew its revenue by 44% in FY23, from 2084 Cr in FY22 to Rs. 2998 Cr in FY23.

In terms of profitability, Jubilant’s figures dwindled from Rs. 437 Cr to Rs. 356 Cr, due to a rise in raw material prices and other related costs. Devyani, on the other hand, was able to tackle margins and yet grow its profits from Rs. 155 Cr in FY22 to Rs. 263 Cr in FY23.

Particulars / Fiscal Year201920202021202220235 Year CAGR
Jubilant Foodworks - Revenue ₹3,530.67 ₹3,885.78 ₹3,268.80 ₹4,331.10 ₹5,095.90 10%
YoY Growth (%)10%-16%32%18%
Devyani International - Revenue₹1,310.60 ₹1,516.40 ₹1,134.80 ₹2,084.00 ₹2,997.70 23%
YoY Growth (%)16%-25%84%44%
Jubilant Foodworks - Net Profit₹322.80 ₹275.46 ₹233.69 ₹437.51 ₹356.20 2%
YoY Growth (%)-15%-15%87%-19%
Devyani International - Net Profit(₹59.30)(₹121.40)(₹81.30)₹155.10 ₹262.50 N/A
YoY Growth (%)105%-33%-291%69%

Profit Margins

The operating Margins of Jubilant & Devyani in FY23 were 22.32% and 21.84% respectively. Devyani International shows the best growth in terms of margins, as its business went from a single digit to reaching 20%+.

The same story continues in terms of Net Profit Margins, as we see Devyani transition from a loss maker to a profit maker, in the last last 2 Years. Jubilant & Devyani reported Net Profit Margins of 7.44% and 8.8% respectively.

Particulars / Fiscal Year201920202021202220235 Year Avg
Jubilant - Operating Margins16.83%22.30%23.29%25.22%22.32%21.99%
Devyani - Operating Margins3.60%16.38%16.60%22.41%21.84%16.17%
Jubilant - Net Profit Margins9.10%7.10%7.10%10.10%7.00%8.08%
Devyani - Net Profit Margins-4.90%-5.19%-7.17%7.44%8.76%-0.21%

Return Ratios

In terms of Return on Equity, Jubilant and Devyani reported figures of 16.90% and 32.10% respectively. Devyani is able to post better return figures as its Net worth (Shareholder’s Equity) is worth less than half of Jubilant’s. That’s why a slight increase in earnings of Devyani leads to much higher return ratios.

On the Return on Capital Employed front, Devyani scores a clear with RoCE at 41.92%, while Jubilant is at 17%. The reason behind Devyani’s clear win is its significantly lower debt as compared to Jubilant.

Particulars / Fiscal Year201920202021202220235 Year Avg
Jubilant - RoE27.50%22.00%17.50%24.60%16.90%21.70%
Devyani - RoE0.00%0.00%0.00%39.06%32.10%14.23%
Jubilant - RoCE40.30%27.40%16.70%22.10%17.00%24.70%
Devyani - RoCE-4.67%18.17%14.78%36.09%41.92%21.26%

Debt Analysis

As discussed from the RoCE figures we realize that Jubilant has higher debt. This is reflected in the Debt-to-Equity figures as Jubilant and Devyani’s figures come around 0.09x and 0.08x respectively.

When it comes to interest coverage ratio Jubilant leads with an ICR of 3.43x, while Devyani’s figure comes up to 2.62x. ICR of above 1.5x is an acceptable ratio, in which both Companies are considered safe.

Particulars / Fiscal Year201920202021202220235 Year Avg
Jubilant - Debt to Equity0000.060.090.03
Devyani - Debt to Equity6.92-2.734.
Jubilant - Interest Coverage03.442.884.23.432.79
Devyani - Interest Coverage-0.630.520.461.962.620.99

Key Metrics of Jubilant FoodWorks Vs Devyani International

We have now understood both the Companies’ business as well as taken a good comparative look at their financials. Now let us look at a few Key Metrics.

ParticularsJubilant FoodworksDevyani International
CMP₹536.05 ₹214
Market Cap (Cr.)₹35,044 ₹25,986
EPS₹5 ₹2.20
Stock P/E (TTM)130.13127.89
Book Value₹32.04 ₹7.86
Price to Book Value16.7327.23
Promoter Holding41.94%62.76%

Future Plans

Jubilant FoodWorks

  • The Company decided to wind down operations of its Ready To Cook brand – ChefBoss – and scale down the network of Ekdum!. 
  • It wants to shift focus on doubling down on Domino’s and scaling up Popeyes
  • Jubilant will work on optimising unit economics delivery of its emerging brands – Dunkin’ and Hong’s Kitchen.

Devyani International

  • The Company will continue to focus on expanding its store footprint across the Core Brands while maintaining a strong emphasis on unit-level performance to drive growth in its delivery business.
  • Devyani plans to undergo a digital transformation that will integrate artificial intelligence & machine learning to better understand & cater to consumer’s needs.


After having understood what both Companies do, we realize that they have almost the same business model. Both businesses have partnered up with the global Quick Food Service chain and have a dominating presence of that brand in India. 

Their success is partly propelled by the value of those global brands in the minds of Indian consumers. These Companies on the other hand can work on operational efficiency and improve their supply chain helping them scale to multiple areas of the country. We also learn that both Companies are not targeting non-metro cities to expand their reach.

However, these businesses can be differentiated in terms of their size, as Devyani is half of Jubilant’s size in terms of revenue. However, closely matched in terms of Net Profit as Devyani’s Profit was only 1.4x of Jubilant.

In terms of Return figures, Devyani scores a clear win due to its low reserves, as the Company had only turned Reserve positive in FY22. Its Return on Equity figures should reduce and stabilize to the levels of Jubilant as the Company retains more profits over the years.

When we consider all the metrics, we truly realize how closely matched both Companies are. But considering both are trading at PE levels of above 130x, which sounds expensive. 

Do you think it’s worth buying these stocks at such a high PE? If yes, then what’s your pick? Let us know in the Comments.

Written By Nasir Hussain

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