Investors are falling out of love with Jubilant FoodWorks

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Editor's note: When Sameer Khetarpal took charge as the chief executive of Jubilant FoodWorks, the master franchise holder for Domino’s Pizza in India, his key responsibilities would have included expansion to newer cities, improving same-store sales and increasing the contributions of other brands in the company’s portfolio. Fresh from spending over six years at Amazon, Khetarpal is unlikely to have sweated it on these objectives. Jubilant has a big lead on its peers on most parameters.  But there’s one key indicator where Khetarpal isn’t having it easy: the performance of Jubilant’s stock. The stock, which has given investors 2,000% returns since it listed on the bourses in 2010, is down about 30% in the last one year from its peak in February 2022. Since September, when he took the reins, it’s down about 20%.  This could be attributed to the prevailing macroeconomic conditions, with the quick service restaurant, or QSR, business bearing the brunt of high food inflation and low consumer spending. Nearly all QSR stocks have taken a beating. But Jubilant, bigger than all of the other companies in the segment, …