The share price of Jubilant FoodWorks gained over 3 percent in early trade on Thursday after the company signed an agreement with PLK APAC for Popeyes restaurants.

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In a regulatory filing, the company announced that it has entered into a Master Franchise and Development Agreement with PLK APAC Pte. Ltd., a subsidiary of Restaurant Brands International Inc. (RBI), to develop, establish, own and operate Popeyes restaurants in India, Bangladesh, Nepal and Bhutan in the coming years.

“Popeyes will be an exciting addition to the JFL portfolio and is expected to become one of the key drivers of growth for us in the coming years,” said Shyam Bhartia, Chairman and Hari Bhartia, Co-Chairman, Jubilant FoodWorks.

Popeyes has expanded successfully into Spain, Switzerland, China, Brazil, Sri Lanka and the Philippines over the past few years.

Popeyes will also enter the United Kingdom and build its presence in Mexico starting in 2021, with plans to open several hundreds of restaurants across both countries.

Brokerage firm CLSA is of the view that with this initiative, Jubilant is looking to address evolved consumer demand for seasoned chicken offerings.

“While it is difficult to capture initiatives in the model, we continue to see support to already elevated valuation multiples,” CLSA said in a note.

CLSA maintains an Outperform rating on the stock with a target price of Rs 3,000 per share.

At 9:45 am, the shares of Jubilant FoodWorks were trading 1.35 percent higher at Rs 2,908.15 apiece on the BSE as against a 0.80 percent fall on the benchmark Sensex.

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First Published:Mar 25, 2021 10:06 AM IST