Pizza and beer brands –Domino’s and United Breweries – in India are scoring some big business goals with the ongoing FIFA World Cup 2018 in Russia. Domino’s Pizza and United Breweries are the major gainers.
Some top guns have been way of target, defending champions Germany have failed to go past the Group stage but some Indians brands have been a bang on target with their business goals with the FIFA World Cup 2018 in Russia. Pizza and beer makers in India have emerged as top scorers.
The World Cup, which began weeks after the Indian Premier League cricket season was over in May, has prolonged the dream run for Jubilant Foodworks Ltd., which operates the local franchise of Domino’s Pizza Inc., and Kingfisher beer owners United Breweries Ltd.
Jubilant has gained 19% in its pizza business volume since April, extending a rally that has tripled the company’s market value over the past year. The stock is rated a “buy” by 70% of the 32 analysts tracking the data compiled by Bloomberg show.
“The long sporting season is boosting sales of pizza and alcoholic beverages,” Rajendra Wadher, director at PRB Securities Ltd., had told Bloomberg over phone. “India’s young population with high disposable incomes are turning to social drinking and fast food. Occupancy at restaurants is higher than usual during the matches.”
Brokerage Equirus Securities Private Limited in a note shared on Tuesday has maintained its “add” rating on Jubilant and raised the price target by 11% to ₹3,034.
“Though we are at the initial stage of FIFA 2018 World Cup, early signs indicate that demand during match timings have witnessed some uptick,” analysts Manoj Gori and Dhaval Dama have stated. “As the tournament progresses, the number of orders is expected to improve significantly.”
United Breweries has gained over 25% in business since April, reaching an all-time high on June 12. The company controls 39.2% of the market followed by Budweiser parent Anheuser-Busch InBev NV and Carlsberg A/S.