Restaurant Stocks Decline Amid LPG Supply Concerns
LPG Supply Concerns Weigh on Restaurant-Related Stocks
The ongoing LPG supply concerns have led to a decline in restaurant-related shares, with some stocks experiencing losses of up to 7% in Monday's trade.
Government Intervention
The Central government has announced an ad-hoc allocation of public distribution system (PDS) kerosene in 21 states and Union Territories to support household cooking and lighting needs. This move follows the month-long war in West Asia, which has disrupted the energy supply chain, particularly cooking gas LPG.
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Impact on Restaurant-Related Stocks
The LPG shortage has severely impacted restaurant-related stocks, leading to significant losses. Eternal, a food delivery firm, declined by 2% to Rs 228.75 per share on the NSE. Swiggy, another food delivery firm, was down by more than 3% at Rs 260.40 per share.
Company Performance
- Jubilant FoodWorks, the franchisee for Domino's Pizza in India, declined by 4.3% at Rs 434.60 per share.
- Sapphire Foods India, one of India's largest franchisees of Yum! Brands, declined by 5.5%.
- United Foodbrands, a major Indian restaurant operator that owns and operates the popular Barbeque Nation chain, was down by 10%.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors should be cautious of restaurant-related stocks due to the ongoing LPG supply concerns.
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