- Jubilant Foodworks' (JUBI) adjusted PAT for Q1FY13 grew 39.3% to Rs323m (v/s Motilal Oswal's estimate of Rs332m).

- Same store sales (SSS) growth at 22.3% is healthy; however, the management indicated softening in both consumption and customer acquisition.

- Gross margin declined 110bp to 73.4% due to high inflation in inputs. EBITDA margin contracted 90bp. Cost towards commissioning Dunkin Donuts stores was ~Rs18m during the quarter.

- JUBI has revised its Dominos store rollout target for FY13 to 100 from 90. It opened three Dunkin Donuts stores in Q1FY13 and maintains its target of opening 10 stores in FY13 and 80-100 stores in the first five years of operations.

- Though Dominos' SSS growth remains healthy, initial signs of tapering off are evident. Motilal Oswal's estimates factor SSS growth of 23% in FY13 and 20% in FY14.

- With increasing number of Dominos and Dunkin Donuts stores, Motilal Oswal expects initial losses and overheads to increase.

- Motilal Oswal remains positive on JUBI's business. However, at 49.6x FY13E and 33.8x FY14E EPS, they believe valuations are rich and price in most positives. Neutral.