According to reports from Business Standard, Jubilant FoodWorks delivered sluggish 9% year-on-year growth in standalone revenues during Q1. The performance was primarily driven by Domino's India, which achieved 7.4% growth backed by 2.5% like-for-like (LFL) growth and 6.5% order growth. Despite improved sequential LFL trends of 0.2% in Q4, inflationary pressures continued to impact demand trends. The company's average daily sales rose 2% year-on-year, with approximately three-fourths of revenues coming from deliveries and this channel showing 12% growth.
As reported by Business Standard, Jubilant FoodWorks gained 80 basis points of delivery share year-on-year, driven by investments in value, innovation and digital engagement. The company launched several new products including Chicken Maxxx, Ready-to-Drink Cold Coffee and Mousse to broaden the customer proposition. The Domino's India store network reached 540 cities, expanding to 19 new cities during the quarter. Looking ahead, the company remains confident about demand trends and expects Q2 to be better than Q1, targeting 5-7% LFL growth.
According to reports from Business Standard, Popeyes emerged as the standout performer among Jubilant's franchise brands, with revenues nearly doubling year-on-year. The fried chicken brand achieved 45% LFL growth for the third consecutive quarter, with average daily sales rising by half. Gross margins for Popeyes increased by 113 basis points to 67.4%. The company believes its superior product due to marination process and fresh chicken, new product launches, nimble supply chain and strong store-level execution have enabled strong performance over the last three years. Management aims to scale up Popeyes to over ₹1,000 crore in revenue over the next three years, with Q1 revenue at ₹70 crore.
As reported by Business Standard, the company expanded its overall gross margin by 133 basis points year-on-year to 75.5% aided by sharper execution. The company mitigated inflationary pressures on operating profit margin through selective pricing with a net price rise of 140 basis points and operational productivity, limiting the decline to 18 basis points and bringing the margin to 19.5%. Analysts led by Devanshu Bansal of Emkay Research believe the 2.5% LFL growth for Domino's India was a combination of 7-8% LFL growth for the delivery channel and a 10% dip in dine-in LFL growth.
According to reports from Business Standard, Nuvama Research has revised its FY27 and FY28 revenues upwards by 1.4-1.7% while increasing operating profit estimates by 2.7% to 6.4%. The brokerage maintains a buy rating with a higher target price of ₹668 compared to ₹646 earlier. Equirus Securities expects margins to move northwards on a sequential basis and anticipates significant upside if the West Asia war ends. The brokerage is positive on the stock with a target price of ₹574.
