Shares of Jubilant FoodWorks fell over 6 percent during the opening on Thursday after the company reported its third-quarter earnings a day before, posting a net profit of Rs 133.2 crore, a jump of 7.5 percent year-on-year in the financial year 2022.

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At 9:30 am, shares of the company were trading at Rs 3198.40, down 102.85 points, or 3.12 percent lower.

Jubilant - Domino's Pizza and Dunkin' Donuts' parent company - posted a net profit of Rs 123.9 crore in the corresponding quarter of the previous fiscal.

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However, the company missed Street estimates by 11.2 percent. CNBC-TV18 poll of analysts had pegged the company’s net profit to rise to Rs 150 crore.

"The growth was driven by an improved recovery in the dine-in channel, well supported by a continued strong momentum in delivery channel," said JFL in its post-earnings statement.

JFL's total expenses rose 13.06 per cent to Rs 1,040.23 crore in the December 2021 quarter, compared with Rs 920.02 crore in the year-ago period.

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Post the earnings, CLSA downgraded Jubilant Food to "sell" and cut its price target from Rs 3,920 to Rs 3,190. Margin pressure led us to cut FY22-24 earnings estimates by 12-14 percent, CLSA said. The brokerage also noted that competitive intensity firming up and there is slow progress on new initiatives.

Citi said that Covid-19 restrictions did impact the company's revenue but margin seems healthy. We continue to derive good upsides from various productivity initiatives and Covid-related risks aside, we continue to believe in the mid-to-long-term story, the brokerage added.

Citi maintains a "buy" on Jubilant's stock but cuts its target price to Rs 4,350 from Rs 4,750.

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Track third-quarter earnings of FY22 of India Inc here