Jubilant FoodWorks Shares Jump 9% on Domino’s Stellar Q2 Results
Jubilant FoodWorks Ltd (JFL), the operator of Domino’s Pizza in India, delivered a sizzling Q2 FY24 performance with a 190% year-on-year surge in net profit, sending its stock soaring 9% in early trading. The robust results highlight the company’s strong execution and rising demand for quick-service restaurants (QSR) in India.
Q2 FY24 Financial Highlights: Record Growth
- Net Profit (PAT): ₹153 crore (up 190% YoY from ₹53 crore)
- Revenue: ₹1,340 crore (22% YoY growth)
- EBITDA Margin: 21.9% (vs. 17.5% in Q2 FY23)
The stellar growth was driven by higher footfall, premium menu offerings, and cost optimization.
Key Growth Drivers for Domino’s India
1. Rapid Store Expansion
Jubilant FoodWorks added 65 new Domino’s outlets in H1 FY24, reaching 1,888 stores nationwide. The company targets 200+ new stores this fiscal, with a focus on Tier 2/3 cities.
2. Digital Dominance & Delivery Boom
- 90% of sales come from online orders.
- AI-driven recommendations and 20-minute delivery guarantee boost customer retention.
3. Cost Efficiency & Supply Chain Gains
Lower cheese prices and optimized logistics helped expand margins.
Analyst Upgrades & Market Reaction
Top brokerages raised targets post-results:
– Morgan Stanley: “Overweight” rating, citing strong same-store sales.
– Jefferies: Target price raised to ₹650, calling it “best-in-class execution.”
– Kotak Institutional Equities: Bullish on India’s QSR boom.
The stock has surged 30% YTD, outperforming the Nifty Midcap 100.
Challenges & Risks
- Competition: Rivals like McDonald’s and Pizza Hut are expanding.
- Input Costs: Cheese/wheat price fluctuations could pressure margins.
- Macro Risks: Inflation may impact discretionary spending.
Future Growth Plans
- Popeyes Expansion: Targeting 850 stores long-term.
- International Growth: Scaling Domino’s in Sri Lanka & Bangladesh.
- Tech Innovation: AI & automation to enhance delivery efficiency.
Investor Outlook: Is the Rally Sustainable?
With strong fundamentals and aggressive expansion, Jubilant FoodWorks remains a top QSR pick. While short-term volatility is possible, the long-term growth story stays intact.
— NextMinuteNews
