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Jubilant Foodworks, Devyani International, & Sapphire Foods: A Comparative Study of QSR Companies

28 September 20236 mins read by Angel One
Teenagers and young generations have an enduring fondness for fast food with Domino’s being the go-to name when it comes to pizza, and KFC being synonymous for fried chicken.
Jubilant Foodworks, Devyani International, & Sapphire Foods: A Comparative Study of QSR Companies
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What is QSR Business model?

Quick service restaurant is a restaurant which offer certain food items that require minimal preparation time and delivered through quick services. Generally, quick service restaurants cater to fast food items over a limited menu as they can be cooked in lesser time with minimum possible variation.

Company Overview:

Jubilant Food works Ltd is the part of Jubilant Bharti Group and is India’s largest food service company. It holds three multinational brands Domino’s Pizza, Dunkin’ Donuts, and Popeyes which serves three different market segments. The company currently operates over 1800 outlets and 12 supply chain centers across 393 cities in India and is the market leader in Pizza Segment.

Devyani International Ltd is the largest franchisee for Yum! Brands popularly known as KFC and Pizza Hut in India. It is also the sole franchisee for Costa Coffee brand and stores in India. Also, it has strong presence across Airports in India where it serves a variety of Food Retail Business. It has more than 1108 stores across brands in 242 cities in India, Nigeria and Nepal.

Sapphire Foods is one of the largest franchisees of Yum! Brands Inc. in the subcontinent, with a proven track record of successfully operating 743 KFC, Pizza Hut and Taco Bell restaurants across India, Sri Lanka, the Maldives. It was established in 2015 by acquiring around 270 stores of KFC and Pizza Huts India and Sri Lanka. 

IPO, Listing and Performance:

Particulars IPO Date Price Band Listing date Listing Price Premium / (Discount) Subscription Size
Jubilant Foodworks 1 8-Jan-10 135 – 145 08-Feb-10 161 16 31.11 times 329 Cr
Devyani International 0 4-Aug-21 86 – 90 16-Aug-21 141 51 116.70 times 440 Cr
Sapphire Foods 09


1120-1180 18-Nov-21 1311 131 6.62 times 2073 Cr

The Devyani International IPO received 116 times more subscriptions and the other two businesses 31.1 and 6.62 times, respectively making it clear that it won the subscription race even though all three stocks were offered at a premium to their offering prices. Investor interest in Devyani’s initial public offering was very high. 

Particulars Jubilant Foodworks Devyani International Sapphire Foods
CMP as on 23 May’23 474 176 1323
Market Cap (in Rs) 31,293 Cr 21,240 Cr 8,407 Cr
Revenue Growth ( 3 Years CAGR ) 9.50% 26% 19%
Operating Profit Margins FY23 22% 22% 19%
Cash Flow from Operations FY23 1026 Cr 637 Cr 382 Cr
Stock Price ( 3 Year CAGR ) 13%
ROE 18% 34% 21%
PE 89 76 36
Market Cap to Cash flow from Operations 31 Times 33 Times 22 Times

Holding Period Return (HPR) of Jubilant foodworks, Devyani International and Sapphire since on its listing price are 193%, 25%, and 1%. As we know Jubilant Foodworks is the oldest listed QSR company in Indian stock exchange than rest two companies but it has created a wealth of shareholder of the company by giving 193% HPR on listing price.

Devyani International’s three years revenue growth is slightly higher i.e. 26% than Sapphire food i.e. 19%, Jubilant Foodworks i.e. 9.5% and their Return on Equity are 34%, 21%, and 18% respectively.

In FY23 Jubilant Foodworks maintaining an operating margin of 22% whereas Devyani International and Sapphire foods 22% and 19% respectively.

When we compare the market cap to cash flow from operations, Devyani International is trading at a premium of 33 times which makes it overvalued when comparing it with Jubilant FoodWorks, which is bigger as per market cap but still it is trading at 31 times. Whereas Sapphire foods is at 22 times.

While Jubilant Foods has maintained its margins at 22% for the past four years, Devyani International and Sapphire Foods both increased their OPM over the year, from zero to 22% and from 2% to 19%, respectively.


Considering three-year revenue growth of all three companies Devyani international is the winner but when we talk about the PE Sapphire foods has the lowest PE of 36 among all the three companies whereas the Industry PE is 82.

Both Sapphire Foods and Devyani International selling YUM! Brands i.e. Pizza Hut and KFC on their store there will always be cut-throat competition between them but Jubilant Foodworks has an edge of selling Domino’s Pizza a distinct brand and needless to say it is well known and leader pizza segment in India and it is enjoying a healthy market share in Pizza Segment.

Jubilant Foodworks, which has 1800+ stores, is clearly the leader when compared to Devyani International and Sapphire Foods, which have 1108 and 743 outlets, respectively.

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