In This Article:
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Jubilant Foodworks Ltd (BOM:533155) achieved significant growth in FY25, with group system sales reaching almost $1.1 billion and over 3,300 stores in operation.
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The company implemented free delivery, which led to record high new customer acquisition and increased sales.
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Domino's India EBITDA increased broadly in line with revenue growth, maintaining strong margins despite the increase in delivery mix.
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The acquisition of DP Eurasia has shown positive results with high system sales, healthy profitability, and high free cash flow generation.
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Jubilant Foodworks Ltd (BOM:533155) has accelerated its pace of new product innovation, introducing exciting new offerings that resonate with customers and drive incremental demand.
Negative Points
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The initial impact of free delivery led to a reduction in average ticket price, although this was later absorbed.
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There is a persistent gap between Domino's margins and stand-alone margins due to investments in emerging brands like Popeyes, Dunkin', and Hong's.
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The company faces challenges in the delivery business due to high competitive intensity, inflation in labor costs, and discounting pressures.
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Inflationary pressures are noted in key commodities such as cheese, oil, and coffee, which could impact costs.
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The Turkey business has experienced volatility in margins due to macroeconomic challenges and hyperinflation accounting.
Q & A Highlights
Q: What is Jubilant FoodWorks' outlook on the industry and its ability to continue gaining market share in FY26? A: Sameer Khetarpal, CEO and MD, emphasized that the company's structural focus on delivery, menu innovation, regional expansion, rapid store expansion, and a unique company culture are key drivers for gaining market share. He remains bullish on growth, citing the large unorganized market as an opportunity for continued penetration and expansion.
Q: How sustainable is the recent improvement in dine-in and takeaway revenues? A: Sameer Khetarpal noted that the company is optimistic about dine-in growth, supported by high customer satisfaction scores and initiatives like the INR99 meal. He highlighted that dine-in is now growing faster than takeaway, and the company is committed to maintaining focus on enhancing the dine-in experience.
Q: What are the challenges and strategies regarding the cost of running a delivery business? A: Sameer Khetarpal acknowledged the competitive pressures in delivery, especially in high-demand areas. However, he highlighted Jubilant FoodWorks' advantages, such as owning delivery bikes, higher deliveries per hour, and a supportive work environment for delivery associates. The company is focused on leveraging technology and operational efficiencies to manage costs.