India Restaurant Recovery Picks Winners While Jubilant Trails

MUMBAI, June 15, 2026 — India’s restaurant recovery story is gathering pace as brokerage firm Macquarie identifies a set of winners in the quick-service restaurant (QSR) space while placing Jubilant FoodWorks Ltd. outside its top recommendations in its latest sector strategy note.

Macquarie cited evidence of improving dine-in demand and stabilizing same-store sales trends across listed restaurant chains but underscored that these gains are patchy and fragile amid inflation and promotion-led competition. Within this evolving backdrop, the firm outlined a preference for Devyani International Ltd., Sapphire Foods India Ltd. and Westlife Foodworld Ltd. as better positioned to benefit from a broader recovery in discretionary food spending and scalable franchise models. 

Brokerage Picks Devyani, Sapphire and Westlife

Macquarie’s preference for these three operators reflects its view that diversified brand portfolios, strong dine-in fundamentals and structural operating leverage differentiate them from others. Devyani, which operates KFC, Pizza Hut and Costa Coffee franchises in India, is seen gaining from improved restaurant productivity and expanding retail footprint. Sapphire Foods, another KFC and Pizza Hut operator, and Westlife Foodworld, managing McDonald’s outlets in western and southern India, rounded out the brokerage’s top trio. 

Jubilant FoodWorks Not on Top List

By contrast, Macquarie expressed caution on :contentReference[oaicite:2]{index=2}Jubilant FoodWorks Ltd., the Domino’s Pizza and Popeyes operator, citing pressures on consistent same-store sales growth and ongoing investment needs to drive dine-in momentum. The brokerage noted sustained competition from food delivery platforms and discounting strategies, which could persistently affect near-term earnings results and valuation. :Market participants have also observed pressure on Jubilant FoodWorks’ stock performance and technical indicators, with shifts toward bearish momentum in recent weeks, highlighting the challenges in regaining strong investor confidence.

Sector Outlook and Recovery Challenges

Macquarie acknowledged that while some green shoots of recovery are visible following the March quarter, inflationary input costs and intensified competition from aggregator platforms such as Zomato and Swiggy continue to exert headwinds on profitability. To counter this, many chains are offering value-focused promotions and promotions to attract customers back to dine-in formats, though this strategy could compress margins if prolonged.

Looking ahead, the brokerage expects a gradual upswing in consumer confidence and discretionary spending that should provide a firmer foundation for QSR companies with scalable operations and strong cash flow profiles. Investors and analysts will be watching upcoming quarterly trends closely to gauge the sustainability of the recovery narrative.

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