Tag: Jubilant Foodworks

India’s biggest pizza chain operator turns to fried chicken for fatter profit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

At a time when pizza sales are slowing down, Jubilant Foodworks, which runs India’s largest pizza chain, Domino’s, is looking to its fried chicken venture, Popeyes, as the ‘speedboat’ for growth.

“Our growth trajectory indicates that we (Popeyes) will be the fastest Quick Service Restaurant (QSR) in India to reach ₹1,000 crore. We anticipate achieving this milestone within the next three to four years,” said Sameer Khetarpal, CEO and MD of Jubilant after inaugurating the first Popeyes store at Chandni Chowk in Delhi.

The renowned American fried chicken restaurant chain now has 33 stores across 11 cities. Khetarpal expects this to reach 100 stores by the next year.

The Noida-based Jubilant also operates Dunkin Donuts chains in India.

Discussing the Indian market, he highlighted its similarity to China’s position in 2011. “We are approximately 12 years behind China in terms of per capita incomes. The QSR industry in China has grown tenfold since 2011, indicating the immense opportunities ahead for us in India,” he noted.

Read Here | Jubilant Foodworks Q3: Low dine-ins offset delivery growth, organic realisation at nine-quarter high

To achieve their ambitious goals, Jubilant Foodworks plans to introduce various offers for both dine-in and delivery services, leveraging the appeal of their brands to attract customers.

They aim to open around 200 Domino’s stores, and another 35-50 Popeyes stores in the next 18 months.

The company, which has a market capitalisation of ₹33,517 crore, has seen its shares gain 8% over the last year.

Also Read | Cajun-flavoured US fried chicken brand Popeyes comes to Chennai

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Karnataka | Infosys, Foxconn, Jubilant in line of fire over alleged failure to hire locals

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

In a heated debate within the Karnataka Assembly, tech giants such as Infosys and Foxconn have found themselves under intense scrutiny for their alleged failure to provide employment opportunities to local residents, particularly those who surrendered their land for corporate projects.

During the session on Tuesday, February 13, Arvind Bellad, the Bharatiya Janata Party (BJP) MLA and Deputy Leader of the Opposition, unleashed a scathing attack on Infosys, accusing the IT giant of not generating a single job in his constituency, Hubbali-Dharwad West.

“In my constituency, there is an industrial estate, Infosys has taken land. They have taken 58 acres, but have not given a single job. They have just planted trees and made gardens. Take back the land from them. They talk about ethics but have not created jobs,” Bellad said.

Bellad stated that the government offered Infosys land for ₹35 lakh per acre when the market price was ₹1.5 crore. According to him, he had asked the farmers to part with the land, claiming that a large firm like Infosys would provide hundreds of jobs.

In 2018, Infosys built the 3.64 lakh sq ft facility, which can accommodate 1,400 employees. However, the business revealed that it will only be hiring for a few posts at the centre in August 2022.

CNBC-TV18 reached out to Infosys for its response, but the company has declined to comment so far.

Echoing similar sentiments, Dheeraj Muniraju, BJP MLA from Doddaballapur, criticised Foxconn and Jubilant FoodWorks for purportedly neglecting to hire locals who had relinquished their land for corporate projects.

“You have given land to Foxconn, they haven’t given jobs to any farmer who lost his land. Even Jubilant FoodWorks… They have not hired a single local person. Foxconn has started hiring and they are sending the recruits to Chennai for training,” the MLA complained.

Responding to mounting pressure, Karnataka Industries and Commerce Minister M.B. Patil assured the Assembly of governmental action against companies that were shirking their responsibility to employ local landowners.

“They would have gotten the land at a subsidised rate, which is an incentive. I don’t want to specifically talk about anyone, but be it Infosys or others, if they have taken the incentive and not given jobs to land owners according to their educational qualification, we might consider withdrawing the incentive or withdraw the land. We will discuss what can be done specifically under the law,” he said.

Notably, the minister disclosed that Foxconn had been allotted 300 acres at a subsidised rate, with expectations of generating 50,000 jobs and producing 20 million iPhones. Patil reiterated the government’s stance on prioritising employment for land-losing farmers and pledged to uphold accountability among corporate entities.

In a separate legislative move, the Karnataka government swiftly introduced amendments mandating the prominent use of Kannada in commercial signage and product labelling. The amendment aims to enforce a minimum 60% utilisation of the local language in various public domains, reinforcing the state’s commitment to linguistic and cultural preservation.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jubilant Foodworks Q3: Low dine-ins offset delivery growth, organic realisation at nine-quarter high

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

It turned out to be a weak quarter for Jubilant Foodworks Ltd., the operator of the Domino’s Pizza outlets in the country as weak dine-ins offset the growth seen in the delivery business.

Like-for-Like sales for Domino’s declined by 2.9% compared to a CNBC-TV18 poll, which pegged the figure at 0% to a decline of 2%. The company said that the like-for-like growth was higher in the delivery business at 6.2%, but was offset by a 5.6% decline in dine-ins.

For the December quarter, the company’s revenue of ₹1,355 crore was lower than the CNBC-TV18 poll of ₹1,418 crore, while EBITDA of ₹282.7 crore was higher than the poll of ₹272 crore. EBITDA margin of 20.9%, was higher than the poll expectation of 19.2%.

Despite the higher margins, the company’s net profit of ₹61 crore was lower than the CNBC-TV18 poll of ₹74 crore. Higher depreciation and lower other income had an impact on the company’s bottomline. On a year-on-year basis, net profit fell by a 24.2%.

Jubilant added 40 new Dominos stores during the quarter, taking the total store count to 1,928. It also opened 10 new Popeyes stores during the quarter, taking the total to 32. Four stores each of Hongs Kitchen and Dunkin Donuts were added during the quarter.

Gross margin during the quarter improved to 76.7% from 75.3% year-on-year.

Deliveries stood at 65.2% of overall sales during the quarter. Organic ticket size was the highest in the last nine quarters, according to the company. The management also said that the DP Eurasia consolidation will be effective from the current quarter.

Shares of Jubilant Foodworks ended 1.6% higher at ₹518.20. The stock has been an underperformer, rising only 13% over the last 12 months. At current levels, the stock is trading at 68 times financial year 2025 earnings.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Domino’s reduces discounts, remains confident of market share gains despite competition

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Domino’s has reduced overall discounts, and now targets consumer groups with offers and discounts more sharply using data and technology. This approach has successfully decreased discount percentages while increasing gross margins in the last two quarters, said Sameer Khetarpal, the MD and CEO of Jubilant FoodWorks, which operates the fast food chain.

Simultaneously, the quick service restaurant (QSR) chain is also expanding its reach in India, moving from four to seven regions, with an aim to establish a 3000-store network. Each region is set to evolve into a significant business unit, potentially generating around ₹1,000 crore each, he said.

Explaining the potential for growth in pizza consumption in the Indian market, Khetarpal said, in India’s $50 billion food service market, pizza is a leading category in QSR, holding nearly $900 million to $1 billion of the market. The challenge for Domino’s in this vast market is not just about selling pizzas; it’s about capturing the occasions when customers crave for any food. “It’s about making Domino’s the go-to option in a wide array of dining occasions, not just pizza,” Khetarpal added.

He also pointed out that the frequency of ordering a pizza in India is only three times in a year, while in countries such as the US, it is 35 times.

Despite the current challenges and competition in the quick-service restaurant (QSR) sector, Khetarpal remains optimistic about the future prospects of pizza consumption.

“Big days are getting bigger, ticket sizes are beginning to improve. It augurs well for the industry overall,” he said.

It must be noted that Domino’s had slashed prices on its pizza range by up to 50% in the buildup to the cricket World Cup in the hope of driving sales and fending off competition.

Also Read | Jubilant Foodworks set to secure 51.16% stake in DP Eurasia

Analysts tracking the QSR space have been advising caution considering the fierce competition. In October, Karan Taurani, Senior Vice President and Research Analyst at Elara Capital pointed out that over the past 3-4 years, pizza has been losing ground to other fast food such as burgers, fried chicken and sandwiches.

Khetarpal also discussed plans on Popeyes, which he said will be the fastest QSR in India to cross ₹1,000 crore in sales within the next 3-5 years.

Noida-headquartered Jubilant FoodWorks’ market capitalisation is around ₹37,242 crore.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jubilant Foodworks set to secure 51.16% stake in DP Eurasia

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Jubilant Foodworks is poised to secure an additional 51% stake in DP Eurasia for approximately ₹700 crore, equivalent to about 73 billion euros. DP Eurasia acts as the franchisor for Domino’s Pizza in Turkey, Georgia, and Azerbaijan, with Russia no longer part of the equation.

The acquisition, coupled with the existing 48.8% stake, will transform DP Eurasia into a wholly-owned subsidiary of Jubilant Foodworks. Consequently, the financial performance of DP Eurasia will be incorporated into Jubilant Foodworks’ consolidated figures.

In 2021, Jubilant FoodWorks initially acquired a 33% stake for ₹251 crore. The subsequent growth in business has seen the valuations double. This move is expected to boost Jubilant FoodWorks’ consolidated top-line and EBITDA by approximately 13 to 15%.

Read Here | Renaissance Investment prefers consumer discretionary, wary of ‘crowded’ QSR space

To finance this acquisition, Jubilant FoodWorks in India, while having some cash reserves, plans to establish a subsidiary in the Netherlands. This subsidiary will secure a loan, guaranteed by Jubilant FoodWorks in India, resulting in consolidated debt on the company’s books.

DP Eurasia currently operates nearly 678 stores in Turkey, 10 in Azerbaijan, and 6 in Georgia. In the first half of the year, they generated revenues close to ₹456 crore, boasting margins of around 17% and a net profit of ₹66 crore.

Shares of Jubilant FoodWorks have settled at ₹544.80 in today’s trade. The stock is up more than 10% in the past month.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jubilant FoodWorks Q2 Results: Profit falls 26%, revenue gains on Domino’s delivery channel sales

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Food service company Jubilant FoodWorks announced its results for the quarter and the first half of the financial year ended September 2023 on Wednesday, October 25. The company, which operates fast-food chains Domino’s Pizza and Dunkin’ Donuts, reported a 26% fall year-on-year in net profit at ₹97.2.

As per analysts, the company’s profit after tax was expected to fall 33% for the quarter to ₹80 crore, against ₹119.2 crore in the same quarter the preceding year.

Also Read: Axis Bank Q2 Results: Profit rises 10% YoY, beats estimates; NII up 19%

The food services company said the rise in revenue for the quarter was led by Domino’s Delivery channel sales which rose 7.9%.  Dominos like-for-like (LFL) sales growth — the year-over-year growth in sales for non-split restaurants opened before the previous financial year — declined 1.3%. CNBC-TV18 poll expected it to fall 2-3% in the quarter.

50 new Dominos stores opened up during the quarter, in-line with expectations of 45-50 new stores. The Domino’s loyalty program, Domino’s Cheesy Rewards, contribution crossed 50% in September 2023, as the enrollment reached 19.5 million.

The sales in Bangladesh grew by 85.6%, while that in Sri Lanka was 2%. The company said that Domino’s in Sri Lanka became the fastest QSR within the country to scale to 50 stores.

Read more: Tech Mahindra Q2 results: Profit after tax declines over 28%, misses estimate

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jubilant FoodWorks Q2 Preview: Analysts expect weak quarter, profit likely to fall 33%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Food service company Jubilant FoodWorks said in an exchange filing that it will announce its results for the September quarter, and the first half of the financial year on Wednesday, October 25. The company will also host an earning conference on the same day.

Jubilant FoodWorks, which operates fast-food chains Domino’s Pizza and Dunkin’ Donuts, is likely to report a weak quarter on low traction for the pizza category, according to a CNBC-TV18 poll. Tough local competition and weak demand due to Shraavan and Adhik Maas are other reasons behind the poor performance.

As per analysts, the company’s profit after tax is expected to fall 33% for the quarter to ₹80 crore, against ₹119.2 crore in the same quarter the preceding year. The food service company had posted a 74% decline in its profit in the previous quarter.

The revenue is expected to rise by 4.5%, while earnings before interest, taxes, depreciation, and amortisation are likely to fall by 13%. Margins for the quarter under review are seen at 20.2% against 24.3% in the year-ago period.

Also Read: Rossari Biotech retains FY24 revenue growth guidance at 10-12%

Dominos like-for-like (LFL) sales growth — the year-over-year growth in sales for non-split restaurants opened before the previous financial year — has likely declined 2-3% in the quarter. 45-50 new Dominos stores are expected to have been opened during the quarter, amid the company’s focus on low-value products to gain scale.

Commentary on demand during the ICC Men’s World Cup and the traction for new value offerings and price cuts will be in focus. Analysts will also keep an eye on the expansion and growth of the Popeyes chicken sandwich.

The shares of Jubilant FoodWork ended 0.4% in the trade on Monday. The stock has been an underperformer and has fallen 11% in the last 12 months. The stock is now trading at 66 times FY25e PE.

Also Read: Tech Mahindra Q2 Results Preview: Dollar revenue may decline; board to consider dividend

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cricket World Cup boost: Nuvama’s Abneesh Roy prefers this pizza player

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

As cricket fever grips the nation, the demand for quick and convenient food options is expected to rise.

In an interview, Abneesh Roy, Executive Director of Nuvama Institutional Equities told CNBC-TV18 his preferred picks in the fast food space.

He said, “Cricket and pizza have much higher relation to each other versus at pizza versus a burger. Pizza travels much more in terms of delivery format. So, yes, Domino’s should benefit more and that is why Domino’s has been a bit more proactive in terms of the promotions; we have seen the news flow, it is not a price cut throughout.”

Earlier this week, Domino’s slashed the prices of its large pizzas by up to 50% in preparation for bulk orders for the cricket World Cup.

Jubilant Foodworks, headquartered in Noida, Uttar Pradesh, is an Indian food service company that possesses the exclusive franchise rights for Domino’s Pizza in India.

Roy also expressed his preference for Sapphire Foods India over Jubilant Foodworks. While both companies operate in the fast-food industry, Roy’s choice reflects his assessment of Sapphire Foods as a more attractive investment option within this space.

“However, when I combine the valuation and expansion, Sapphire Foods stands out from a one-year perspective, but from cricket, Jubilant Foodworks should benefit,” he added.

Sapphire Foods is a prominent franchise operator for Yum! Brands Inc. in the subcontinent, boasts a proven history of effectively managing over 700 KFC, Pizza Hut, and Taco Bell establishments spread across India, Sri Lanka, and the Maldives.

Talking about the FMCG space, Roy revealed that Nuvama is overweight on Nestle, Tata Consumer, and Colgate. However, it’s not all positive news, as he also cautioned about weak performance expectations for Britannia, Bajaj Consumer, and Emami in the second quarter.

Also, addressing the stock performance of Nykaa, Roy conveyed optimism by stating, “The worst is behind for Nykaa stock performance.” He further stated that he expects Nykaa to experience a re-rating from a near to medium-term perspective.

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Domino’s slashes pizza prices up to 50% ahead of World Cup

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Fast food giant Domino’s has slashed prices on its pizza range by up to 50% in the buildup to the cricket World Cup.

Starting today, customers can enjoy their favourite large vegetarian pizzas from Domino’s for just Rs 499, down from the previous price of Rs 799. Similarly, non-vegetarian pizza lovers can order large pizzas for an attractive price of Rs 549, a substantial drop from the previous rate of Rs 919.

The quick-service restaurant (QSR) chain hopes to use the offer to drive sales and fend off competition in a sporting event that has a festive fervour to it and sees a spike in delivery orders.

In addition to the substantial price reduction on large pizzas, Domino’s India has introduced Everyday Value offers to cater to a wider audience. The Howzzat50 offer gives customers a flat 50% discount on pizzas.

While the ODI World Cup naturally generates high demand for fast food, Domino’s India wants to get ahead of the competition by deploying a strategic price cut likely due to competition from other food categories and cuisines such as burgers and biryani in particular.

Domino’s has also seen some moderation in key input costs like dairy and cheese, which allows the company to pass on the benefits to its customers.

Domino’s India recently broadened its reach by launching 23 new outlets and venturing into one new city taking the total number of stores to 1,838 spread across 394 cities.

Additionally, the company introduced four new eateries for Popeyes and made its debut in two new cities, Manipal and Coimbatore, resulting in a total of 17 restaurants across four cities.

On September 27, Karan Taurani, a Senior Vice President and Research Analyst at Elara Capital stated that the pizza industry is encountering fierce competition, and its potential for growth might not be immediately apparent. In fact, when reviewing market share statistics over the past 3-4 years, it becomes clear that the pizza sector has lost ground within the larger quick-service restaurant (QSR) chain sector.

“If you look at the market share numbers over the last 3-4 years, pizza has lost market share as a category within the overall QSR chain. So, it’s a win-win for burger, fried chicken for aggregators like Zomato, over the near to medium-term,” said Taurani.

Catch all the latest updates from the stock market here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Time Technoplast may monetise overseas assets, FIIs buy Jubilant Foodworks: Dealing Room Check

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Shares of Time Technoplast ended 2.8 percent lower on Monday, snapping a three-day gaining streak. The stock had gained 10 percent over the last three trading sessions.

Sources within the dealing rooms told CNBC-TV18 that the street is expecting the company to monetise its overseas assets soon.

Time Technoplast shares have gained 67 percent so far in 2023.

Truncated Week Begins On A Subdued Note

Benchmark indices ended lower on Monday at the start of this truncated week ahead of the Ganesh Chathurthi holiday on Tuesday.

However, dealers said that there has been basket buying in the Nifty 50 stocks at the FII desk in today’s trading session. PSU Banks continued to outperform in today’s session, with the index ending close to a record high.

All eyes are on the US Federal Reserve meeting, the outcome of which will be revealed on Wednesday night Indian time.

Dealers also mentioned that the trend of fund raising via QIPs, block deals is likely to continue.

Besides Time Technoplast, these stocks made it to the dealing room chatter:

Senco Gold: The recent listing also snapped a three-day gaining streak on Monday. The stock has gained 15 percent so far this month. Dealers believe that a domestic PMS is an active buyer in the stock off late.

Jubilant Foodworks: The stock has been consolidating recently but the dealers suggested that there were strong buy flows on the FII desk in today’s trading session.

Bharat Electronics: The stock ended higher but off the day’s high in today’s trading session. There was also a small market at close basket selling seen on Monday in the defence stock.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow