Shares of Jubilant FoodWorks slumped 8 percent intraday on Tuesday. Its CEO and whole-time Director Ajay Kaul has resigned
after the Domino's Pizza and Dunkin' Donuts owner posted its worst quarterly performance in April-June since its listing. The company has said it has initiated process of identifying his successor but Kaul’s exit may not go well with investor as he was perceived as architect of strong supply chain and operation excellence. This is second high level management exit after its former CFO Ravi Gupta had resigned earlier in May following which Sachin Sharma was appointed as a replacement. Amidst concern, few analysts have turned negative on the stock. Maintaining sell rating and a target price of Rs 945 per share, Citi says the exit is a negative for the stock as Kaul has been well-regarded and under his leadership, the company turned around in the last 11 years and embarked on its expansion journey. The brokerage firm also adds that timing of the resignation is a surprise. What is also surprising is that there have also been other changes including swap of business heads between the two brands. They had swapped roles of COO, Dunkin’ Donuts India with the COO of Domino’s Pizza India earlier this year in April. The latter has shifted to Dunkin’ Donuts India as CEO.
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