Shares of Jubilant FoodWorks rose nearly 4 per cent in opening trade on Bombay Stock Exchange, in an otherwise weak broader market, after the company said it has entered into an exclusive master franchise and development agreement with PLK APAC Pte. Ltd., a subsidiary of Restaurant Brands International Inc., to introduce American multinational chain of fried chicken fast food restaurants 'Popeyes', to India.
"Jubilant Foodworks Limited has entered into an exclusive Master Franchise and Development Agreement with PLK APAC Pte. Ltd., a subsidiary of Restaurant Brands International Inc., to develop, establish, own and operate, and to license Franchisees to develop, establish, own and operate, Popeyes Restaurants in India, Bangladesh, Nepal and Bhutan," Jubilant FoodWorks said in an exchange filing post market hours on Wednesday.
Boosted by the development, shares of Jubilant FoodWorks opened higher at Rs 2,965 against previous close price of Rs 2,869.30 on the BSE. The stock surged 3.86 per cent to Rs 2,980.25 in opening trade on the back of spurt in volume trade. As many as 16,000 shares changed hands over the counter as compared to two-week average volume of 18,000 scrips. In contrast, the BSE Sensex was down 293 points or 0.6 per cent to 48,886.
Founded in New Orleans in 1972, Popeyes is one of the world's largest chicken quick service restaurants with over 3,400 restaurants in over 25 countries around the world. Popeyes is known for its unique New Orleans style menu featuring the chicken sandwich, spicy chicken, chicken tenders, fried shrimp, and other regional items.
Sinceits acquisition by RBI, 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, Jubilant FoodWorks said.
"Today's agreement will pave the way for guests to enjoy Popeyes world-famous menu items, including the brand's signature Chicken Sandwich," it added.
Shyam S.Bhartia,Chairman and Mr.Hari S. Bhartia, Co-Chairman, Jubilant Foodworks Limited said:"We are happy to announce the signing of a multi-country agreement to acquire the exclusive rights to operate and sub-license the iconic Popeyes brand in India and neighbouring countries. Chicken is one of the largest and fastest growing categories in India and is expected to grow rapidly in years to come. 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."