Shares of Jubilant FoodWorks plunge as CEO resigns and brokerages downgrade the stock

• Pratik Pota, the CEO of Jubilant FoodWorks resigned to pursue a “quasi-entrepreneurial opportunity”.
• Following this, shares of the company plunged sharply over 13% on Monday as brokerages downgraded the stock rating citing leadership change amid a challenging macro environment.
• Further, analysts believe store performance may come under pressure due to the move.

Shares of Jubilant FoodWorks slumped over 13% on Monday after Pratik Pota, the chief executive officer (CEO) of Jubilant FoodWorks resigned to pursue a “quasi-entrepreneurial opportunity”.

This comes as negative news for the stock as the sudden resignation of the company head has shocked investors on what will happen to the operations amid a tough environment.

Moreover, several brokerages downgraded the stock rating citing leadership change amid a challenging macro environment.

Morgan Stanley reportedly downgraded the share rating to ‘underweight’ citing sudden leadership change threatens near-term outlook.
According to the company, Pota will continue in his current role till June 15, 2022. Further, the company is on the hunt to identify his successor. Pota joined Jubilant FoodWorks in 2017 and has added to the company growth.

“I will be moving to pursue a quasi-entrepreneurial opportunity and will share more details soon. I am excited and also admittedly a little nervous, but moving ahead with a strong belief in my credo that, beyond fear lies victory…,” Pota tweeted.

The Indian food service company based in Noida holds the franchise for food brands like Domino's Pizza and Dunkin' Donuts.

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