India’s quick-service restaurant (QSR) industry continues to be a hotbed for investment, with major players expanding aggressively despite short-term hurdles. Analysts have issued strong “Buy” recommendations for three major QSR operators: Jubilant FoodWorks Ltd, Devyani International Ltd, and Sapphire Foods Ltd. These companies are capitalizing on franchise growth, new brand strategies, and an anticipated recovery in urban spending.
Jubilant FoodWorks: Expanding Domino’s Footprint and New Ventures
Jubilant FoodWorks, the master franchisee for Domino’s Pizza and Dunkin’ Donuts in India, is making significant strides in expansion. With a market capitalization of ₹40,342.94 crores as of Wednesday, its stock opened at ₹610.80, and analysts see strong upside potential.
One of India’s top brokerage firms, Sharekhan, has assigned a “Buy” rating with a target price of ₹799, representing a 31.06% upside from current levels. The optimism stems from Jubilant’s Ambition FY28 strategy, which targets:
- Double-digit revenue CAGR (Compound Annual Growth Rate) over the next five years.
- 200 basis points (bps) increase in PAT (Profit After Tax) margins by 2028.
- 3,000+ Domino’s outlets across India, strengthening its leadership position.
Additionally, Jubilant FoodWorks is investing in new platforms such as Big Big Pizza and Coffy, a coffee brand it aims to position among Turkey’s top three. With a focus on supply chain efficiency and capital allocation, analysts believe the company’s free cash flow maximization strategy will further boost long-term value.
Devyani International: KFC, Pizza Hut, and Costa Coffee Growth Strategy
Devyani International, a major franchisee of KFC, Pizza Hut, and Costa Coffee in India, has demonstrated resilient growth despite facing near-term headwinds. With a market capitalization of ₹20,259.24 crores, its stock opened at ₹167.95, and analysts expect further gains.
Leading brokerage Motilal Oswal has issued a “Buy” rating with a target price of ₹215, implying a 28.01% upside. The firm’s bullish stance is backed by:
- 111 new store openings in Q3FY25, accelerating its expansion.
- Strategic cost optimization measures, aimed at improving profitability.
- Launch of KFC cafes, bringing innovation to the fast-food space.
The company is benefiting from pro-consumption government policies, which analysts believe will stimulate demand in the QSR sector. Additionally, Devyani’s focus on improving unit economics and scaling its network positions it for a strong performance rebound in the coming quarters.
Sapphire Foods: KFC, Pizza Hut, and Taco Bell Driving Growth
Sapphire Foods, which operates KFC, Pizza Hut, and Taco Bell franchises in India, Sri Lanka, and the Maldives, has been expanding steadily despite some same-store sales growth (SSSG) challenges. The stock, with a market capitalization of ₹10,309.41 crores, opened at ₹321.25 on Wednesday.
Brokerage firm Motilal Oswal has assigned a “Buy” rating with a target price of ₹415, suggesting a 29.69% upside. The key growth drivers include:
- Robust store expansion, increasing its footprint in key markets.
- Revenue growth from KFC and Pizza Hut, its strongest brands.
- Stabilization in the Sri Lankan market, which has contributed positively to overall financials.
However, Sapphire Foods has faced dine-in sales underperformance and weak SSSG, which analysts believe will be offset by an expected recovery in urban consumption. The company’s focus on optimizing Average Daily Sales (ADS) and enhancing profitability across existing outlets is expected to sustain long-term growth.
| Company | Market Cap (₹ Cr.) | Opening Price (₹) | Target Price (₹) | Upside Potential (%) |
|---|---|---|---|---|
| Jubilant FoodWorks | 40,342.94 | 610.80 | 799 | 31.06% |
| Devyani International | 20,259.24 | 167.95 | 215 | 28.01% |
| Sapphire Foods | 10,309.41 | 321.25 | 415 | 29.69% |
The Indian QSR market remains resilient, with leading brands expanding aggressively despite macroeconomic challenges. The brokerage-backed bullish outlook on Jubilant FoodWorks, Devyani International, and Sapphire Foods reflects confidence in their long-term growth strategies.
- Jubilant FoodWorks is doubling down on Domino’s expansion and new ventures like Big Big Pizza and Coffy.
- Devyani International is scaling its store network and leveraging cost efficiencies to drive profitability.
- Sapphire Foods is enhancing sales productivity while benefiting from a recovery in urban spending.
With high upside potential across all three stocks, analysts see strong returns for investors who bet on India’s fast-growing QSR industry.
