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Domino’s India operator Jubilant Foodworks Q2 profit drops 26.1% to Rs 97.20 cr, revenue up 5.2% on delivery channel sales

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Jubilant Foodworks, which operates Domino’s restaurants in India, on Wednesday posted second quarter profit at Rs 97.20 crore, down 26.1 per cent in comparison to Rs 131.53 crore during the second quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 1368.63 crore, up 5.2 per cent as against Rs 1301.49 crore during the corresponding quarter of last year. “The growth was driven by Domino’s delivery channel sales which increased by 7.9 per cent. The average daily sales of mature stores, came in at Rs 81,658, up by 1.4 per cent sequentially. Domino’s LFL came in at -1.3 per cent,” the company said in a regulatory filing.

According to a CNBC TV18 poll, Jubilant Foodworks was expected to post Q2 profit at Rs 80 crore and revenue at Rs 1345 crore. While the company income stood at Rs 1375.69 crore, total expenses during the quarter came in at Rs 1290.17 crore.

Shyam S Bhartia, Chairman and Hari S Bhartia, Co-Chairman, Jubilant FoodWorks Limited, said, “We are focused on pursuing growth, driving innovation and executing on opportunities to expand margins. Our investments in technology and delivery channel are paying off, as we registered positive like-for-like growth in the channel and traffic on the app grew ahead of our plan. We will continue to make investments in store expansion, technology and the team to stay ahead of the curve and ensure our continued long-term success.”

Sameer Khetarpal, CEO and MD, Jubilant FoodWorks Limited, added, “The growth continues to be order led with elevated level of consumer engagement and the decline in ticket is also now arrested. Also, the second consecutive quarter of sequential improvement in ADS of mature stores and Gross Margins are early indicators of structural improvement in the health of our business. Every single action being taken by us is not only helping us manage the short term challenge but will also ensure a very solid foundation for the long-term growth of our business.”

The Company said that it has opened 60 new stores in India, resulting in a network of 1,949 stores across all brands. With the addition of 50 new stores and entry in three new cities, Domino’s India expanded its network strength to 1,888 stores across 397 cities. The Company also opened five new restaurants for Popeyes and entered two new cities – Hyderabad and Madurai – taking the network tally to 22 restaurants across six cities. In Hong’s Kitchen, four new stores enhanced the network to 18 stores across three cities. In Dunkin’, one new store was opened with the entry in one new city. 11 out of 21 stores are now as per the brand’s coffee-first identity.

Meanwhile, the enrollment to loyalty program – Domino’s Cheesy Rewards – reached 19.5 million and the loyalty order contribution crossed 50 per cent in September 2023. Consumer engagement remained elevated with all time-high quarterly app downloads at 10.6 million, up by 17.8 per cent and MAU(App) came in at 10.8 million.

Further, in Bangladesh, system sales grew by 85.6 per cent and the network expanded to 23 stores. In Sri Lanka, the system sales growth was 2.0 per cent. Domino’s in Sri Lanka became the fastest QSR within the country to scale to 50 stores.