Macquarie Picks Devyani, Sapphire Over Jubilant in Restaurant Stocks

Macquarie has turned constructive on Indian restaurant franchise operators Devyani International, Sapphire Foods and Westlife Foodworld, which run KFC and McDonald's outlets. The brokerage remains cautious on Jubilant Foodworks, the Domino's franchisee, and has cut its target price on the stock. Devyani and Sapphire are favoured for their strong same-store sales growth and aggressive store expansion plans. The divergent calls highlight growing investor preference for QSR chains over pizza-focused formats in India.