Jubilant Foodworks Q4 Results: Domino’s Like-For-Like Growth Turns Positive After Four Quarters

Jubilant Foodworks Ltd., the master franchisee for Domino’s Pizza in India, reported a return to positive Like-For-Like (LFL) growth for the March quarter, marking an improvement after four consecutive quarters of decline. Domino’s LFL growth for the quarter was 0.1%, compared to a 2.9% decline in the December quarter.

In its investor presentation, Jubilant Foodworks attributed this turnaround to several strategic initiatives. These included sharper on-ground execution, a structural transition from four regions to seven, continuous improvement in delivery times, and the re-imaging of underperforming stores.

Financial Highlights:

For the March quarter, Jubilant Foodworks reported a net profit of ₹207.2 crore, significantly higher than the poll estimate of ₹44 crore. This profit was notably boosted by an exceptional gain of ₹170.1 crore, resulting from the remeasurement of previously held equity interest at the acquisition date. Earlier this year, Jubilant’s wholly-owned subsidiary increased its stake in DP Eurasia N.V. to 94.33% for ₹770 crore.

Revenue for the quarter came in at ₹1,572.8 crore, exceeding the poll estimate of ₹1,327 crore. The company also reported a 24.7% year-on-year increase in Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), which stood at ₹310.5 crore, surpassing the poll estimate of ₹245 crore.

The EBITDA margin for the quarter was 19.7%, slightly higher than the 19.6% recorded in the same quarter last year, and better than the estimated 18.5%.

Management Commentary:

Sameer Khetarpal, MD & CEO of Jubilant Foodworks, highlighted that the positive LFL growth for Domino’s was achieved through pre-planned strategic interventions. These included a brand revamp, refining the value proposition, and targeted delivery fee waivers to drive demand during a period of weakness.

Stock Performance:

Despite the positive quarterly results, shares of Jubilant Foodworks ended almost unchanged on Wednesday at ₹478.55. The stock has underperformed in 2024, declining nearly 15%, and remains flat over the past 12 months.

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