Jubilant Foodworks Stock Surges 8% As Q1 Profit Doubles

The stocks of Jubilant foodworks skyrocketed more than 8 per cent in the Monday trading session after the Domino’s Pizza’s Indian franchise net profit almost doubled in the FY 2024-25 first quarter (Q1) profit. 

Jubilant Foodworks stock traded at Rs 649 with 8.4 per cent gain in afternoon session on the National Stock Exchange (NSE). 

The company's consolidated net profit increased to Rs 558 million (USD 6.65 million) for the quarter that ended on 30 June from Rs 289.2 million the previous year.

Customers have been cutting back on their expenditures on eating out or ordering in due to persistently high inflation. Due to high food prices, India's retail inflation remained constant at about 5 per cent for the entire quarter, putting further pressure on the quick-service restaurant (QSR) industry's costs.

Jubilant offered value deals, such lunches for Rs 99 rupees and free home delivery to encourage demand during a quarter that occured around the T20 Cricket World Cup and school summer holidays.

During the quarter, Jubilant's operating revenue increased by 45 per cent to Rs 19.33 billion.

Domino's stores reported a 3 per cent increase in like-for-like sales during the quarter, compared to a 1.3 per cent decline in the same metric last year. However, due to increases in the cost of basic products like cheese, poultry, and vegetables, the company's expenses increased by 34 per cent.

Increased expenses and the removal of delivery fees reduced Jubilant's profit margin. The company's profits before interest, tax, depreciation, and amortisation (EBITDA) margin decreased to 19.3 per cent from 21.1 per cent in the previous year.

Its peers,Restaurant Brands Asia, Burger King operator, reported a smaller first-quarter loss after consumers were lured by promotions and discounts. In the meantime, due to weak demand, competitor companies Sapphire Foods India and Westlife Foodworld reported a larger-than-expected drop in profit.