In the latest business update, Jubilant FoodWorks has reported a robust sales performance for the fourth quarter of FY25, sustaining the positive momentum from the previous quarter. As the master franchisee for popular brands like Domino’s Pizza and Dunkin’ Donuts in India, the company revealed a 12.1% growth in same-store sales for Domino’s during March, closely aligning with the 12.5% growth noted in Q3. This impressive growth trajectory highlights the resilience of the fast-food sector in India.

Strong Revenue Growth in FY25

For the fourth quarter, Jubilant FoodWorks experienced consolidated revenue growth of 33.9% and standalone revenue growth of 19.1% compared to the same period last year. Throughout FY25, the company boasted a 44% increase in consolidated revenue and a 14.3% rise in standalone revenue year-over-year. These figures illustrate a significant recovery and growth within the fast-food market.

Positive Outlook for QSR Sector

Sector experts suggest that Jubilant FoodWorks is not alone in reporting these promising numbers. According to analysts from Goldman Sachs, other fast-food chains like Westlife FoodWorld, which operates McDonald’s in southern and western India, and Sapphire Foods, the franchisee for Pizza Hut and KFC, are also anticipated to show positive growth in Q4. The demand for fast food is shifting positively, attributed to enhanced affordability and the resurgence of dine-in services, a trend expected to gain momentum in FY26 as consumer discretionary income improves following personal income tax cuts.

• Goldman Sachs Insights:
  • Increased demand for fast-food chains
  • Recovery in dine-in sales
  • Anticipated growth in FY26

Strategic Focus on Store Expansion

Despite the positive sales figures, there has been a noticeable shift in the strategy of quick-service restaurants (QSRs) regarding store expansion. Manish Dawar, CFO and whole-time director at Devyani International, which franchises KFC and Pizza Hut, noted that the focus has shifted towards generating demand rather than aggressively opening new locations. This strategy reflects a more cautious approach compared to the post-COVID expansion seen in 2022-23.

Jubilant FoodWorks added 56 new stores in the January-March quarter, bringing its total to 3,316 locations. However, this number is lower than the previous average of 60-80 new stores per quarter. Specifically, Domino’s India opened 52 new outlets while closing 12, ending the quarter with 2,179 stores.

Focus on Value Offerings

According to Motilal Oswal, QSR players are now better positioned to cater to consumer affordability by enhancing their value offerings and refraining from price increases. Sameer Khetarpal, MD & CEO of Jubilant FoodWorks, emphasized that the company has not raised prices in the last ten quarters, a trend expected to persist into FY26.

As Jubilant FoodWorks continues to navigate the evolving fast-food landscape, its strategic focus on maintaining affordability and adapting to consumer preferences may well position it favorably for sustained growth in the years ahead.