Jubilant FoodWorks, the operator of Domino’s India, reports a two-fold increase in first-quarter profit.
Jubilant FoodWorks, the Indian franchisee of Domino’s Pizza, has reported a remarkable two-fold increase in its first-quarter profit, highlighting resilience amid persistent economic challenges. For the quarter ending June 30, 2024, Jubilant’s consolidated net profit surged to 558 million rupees ($6.65 million), up from 289.2 million rupees a year earlier. This impressive growth came despite high inflation, which has been squeezing consumer spending on dining out and ordering in.
In an environment where India’s retail inflation hovered around 5% due to elevated food prices, the quick-service restaurant sector faced significant cost pressures. However, Jubilant FoodWorks successfully attracted budget-conscious customers with strategic value deals and promotions. The company offered enticing meal options for as low as 99 rupees ($1.18) and provided free home delivery, a move that coincided with the T20 Cricket World Cup and school summer vacations.
Jubilant’s revenue from operations saw a robust 45% increase, reaching 19.33 billion rupees during the quarter. The company also reported a 3% growth in like-for-like sales at its Domino’s stores, a notable improvement compared to a 1.3% decline the previous year. Despite these gains, the company faced a 34% rise in costs, driven by higher prices for essential ingredients like vegetables, chicken, and cheese. This cost increase and the waiver of delivery fees impacted Jubilant’s EBITDA margin, which contracted to 19.3% from 21.1% a year ago.
In contrast to Jubilant’s strong performance, competitors such as Burger King’s India operator, Restaurant Brands Asia, posted a narrower first-quarter loss thanks to similar offers and discounts. However, rivals Sapphire Foods India and Westlife Foodworld reported larger-than-expected declines in profit due to weaker demand.
Jubilant FoodWorks’ stock reflected investor confidence, closing 0.3% higher ahead of the results. As the quick-service restaurant sector navigates high inflation and fluctuating consumer spending, Jubilant’s strategic pricing and promotional efforts have positioned it well for continued success in the competitive market.
ABOUT PRESTAIR SYSTEM
Established in 1982, Prestair Systems LLP is a leading manufacturer of commercial kitchen equipment. Specializing in designing and producing high-quality and durable solutions, we cater to restaurants, hotels, and various food service establishments. Known for our commitment to innovation and excellence, we are a trusted partner for businesses seeking reliable kitchen equipment solutions.
Prestair Systems specializes in providing solutions for high-quality food service equipment.Their offerings cater to commercial kitchens, ensuring efficiency and reliability in food preparation and service. Prestair Systems products are designed to meet the rigorous demands of the food service industry, emphasizing durability and performance. Delivering Freshness with Excellence—Quality Equipment Ensures Safe, Hygienic, and Satisfying Food Experiences, Optimizing Space and Elevating Ambiance for Happy Customers.
Keywords: Jubilant FoodWorks, Domino’s Pizza India, Q1 profit, inflation, quick-service restaurant sector, value deals, revenue increase, like-for-like sales, EBITDA margin, food prices, consumer spending