A day after Jubilant FoodWorks announced that Chief Executive Ajay Kaul would be leaving next year, the stock slumped 6 per cent. The operator of the country’s largest fast-food chain, Dominos Pizza, recouped some of those losses since that Tuesday plunge but investors have been wary for a while now. JFL’s market value has halved to Rs 6,500 crore from a peak of Rs 12,700 crore in July 2015.
Still, Kaul’s departure appears to be free of rancour. “My immediate priority is to find a successor,” he told ET. But it does follow several top and mid-level exits. Former executives and others with knowledge of the company’s inner workings said JFL has been struggling to cope with challenges facing the quick service restaurant (QSR) business in India but also suggested that some of its wounds may be self-inflicted.
They pointed to the breakneck pace of expansion in the face of a clearly waning appetite for western-style fast food across the country. This seems to have caught up with JFL, forcing it to cut store openings.
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