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Jubilant FoodWorks Ltd. informed that its longtime Chief Executive Officer Ajay Kaul resigned from the company.
NEW DELHI: Ajay Kaul, who was with the fast food chain operator for 11 years, will continue in his current role till March 31, 2017, Jubilant FoodWorks said in an exchange filing. The search for a successor has been initiated, the company added.
Dwindling earnings, narrowing margins and increasing competition have weighed on the company’s stock, which has fallen 48 percent from its all time high of Rs 1,931 made on September 8, 2015.
Jubilant FoodWorks’ net profit fell 31 percent to Rs 19 crore in the quarter ended June, and the company’s same store sales contracted by 3.2 percent.
A new CEO is expected to be announced soon, sources said, though the company gave no signs of it on Monday.
In April this year, the company had swapped roles of Dev Amritesh, president & chief operating officer (COO), Dunkin' Donuts India and Tarun Bhasin, president & COO, Domino's Pizza India, to invigorate the business.
Amritesh was named the president & chief business officer (CBO) of Domino's Pizza India, while Bhasin became president & CBO, Dunkin' Donuts India.
Despite this, Jubilant's SSG came below street estimates of a 4 per cent y-o-y growth in the June quarter, with the outlook expected to be weak for the next few months.
In a report dated September 3, Abneesh Roy, senior vice-president of institutional equities (research) at Edelweiss said that Jubilant's SSG dipped due to a constrained consumption environment. "The scenario remains challenging for quick-service restaurants, prompting players to dole out new offers and product innovations," he said.