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MUMBAI: Brokerage firm CLSA has maintained its outperform rating on Jubilant FoodWorks after the company signed a deal to bring American multinational chain of fried chicken fast food restaurants 'Popeyes' to India and neighbouring countries.

The popular Indian food services company has entered into an exclusive master franchise and development agreement with PLK APAC Pte. Ltd., a subsidiary of Restaurant Brands International Inc, as per a company statement. It will develop, establish, own and operate Popeyes restaurants in India, Bangladesh, Nepal and Bhutan in the coming years, it said.

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"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 its 24 March note.

The brokerage firm has also retained its target price for the stock at Rs3,000 per share.

Analysts at CLSA estimate the western quick service restaurant (QSR) market at $2.3 billion, of which 34% is accounted for by pizza QSR, while the share of chicken QSR is pegged at 25%.

The brokerage firm added that Jubilant seems well positioned to benefit from industry consolidation and conversion of initiatives like Hong's Kitchen, Ekdum, and now Popeyes food brand.

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