Skip to content

    Jubilant Food.

    JUBLFOOD
    Consumer Services·21 May 2025
    Management Summary

    Jubilant FoodWorks reported a strong FY25, driven by strategic initiatives like free delivery, menu innovation, and aggressive store expansion, leading to significant revenue and EBITDA growth. The company successfully managed to absorb the initial impact of free delivery on ticket prices and maintained Domino's India margins. International businesses like DP Eurasia and Sri Lanka also showed robust performance, contributing to overall growth despite some inflationary pressures and margin drag from new brand investments.

    Highlights

    5

    • Consolidated Revenue reached Rs. 8,142 crore for FY25.

    • Standalone Revenue grew to Rs. 6,105 crore, a 14.3% increase for FY25.

    • Domino's India revenue growth of 13.4% was powered by 7.5% LFL growth for FY25.

    • Consolidated EBITDA for FY25 was Rs. 1,037 crore, resulting in a margin of 12.7%.

    • Group network expanded to 3,316 stores with a net addition of 238 stores in FY25.

    Concerns

    3

    • Initial impact of free delivery led to a reduction in average ticket price, though it is now growing again.

    • Investments in emerging brands (Hong's, Dunkin', Popeyes) are currently causing a drag on overall JFL margins compared to Domino's India.

    • Raw material inflation was noted in cheese, oil, coffee, milk, and chicken, though management expects the overall environment to be relatively benign.

    What Changed1

    vs Q1 FY26

    Risks discussed5 → 3 (-2)

    Key financials

    Single quarter

    08 metrics
    1. 01Consolidated Revenue₹8,142 Cr
    2. 02Standalone Revenue₹6,105 Cr+14.3%YoY
    3. 03Domino's India Revenue Growth13.4%
    4. 04Domino's India LFL Growth7.5%
    5. 05Consolidated EBITDA₹1,037 Cr

    Segment breakdown

    DP Eurasia
    ₹3,071 Cr System Sales (FY25)0.4% Domino's Turkey LFL (FY25)
    COFFY (Turkey)
    ₹295 Cr System Sales (FY25)10% Contribution to DPEU System Sales
    Sri Lanka
    ₹81 Cr Revenue45.6% Growth
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Debt

    Debt disclosed

    Guidance & targets

    5
    CategoryTargetPriority
    Store Expansion - Domino's India
    New store openings
    250 stores
    		High
    Store Expansion - Domino's Turkey
    New store openings
    30 stores
    		High
    Store Expansion - COFFY
    New cafe openings
    50 cafes
    		High
    Store Expansion - Popeyes
    New store openings
    30 stores
    		High
    Profitability - Standalone EBITDA Margin
    Improvement in EBITDA margin
    200 bps
    		High

    DP Eurasia Debt Reduction

    H2 FY26 / starting this year
    CurrentDebt is almost half of last year's, refinancing underway.
    TargetFunding interest cost and reducing acquisition debt from H2 FY26; Turkey debt not high cost from this year.

    Why it matters

    Significant impact on overall PAT and financial health of the DP Eurasia segment.

    And starting H2 FY '26, we will now start funding interest cost along with reduction in acquisition debt.

    How to verify

    capital_allocation.debt.actions

    Risks & concerns

    3
    RiskSeverity

    Macro challenges in DP Eurasia (Turkey)

    High inflation and interest rates in Turkey, but company is managing costs and refinancing debt, expecting debt reduction from H2 FY26. — Management acknowledged

    medium

    Competitive intensity in delivery and labor force

    Pressure in acquiring delivery associates due to competition from aggregators and e-commerce, especially in high-convenience pin codes. — Analyst acknowledged

    medium

    Raw material inflation

    Specific commodities like cheese, oil, coffee have seen price increases, with milk and chicken also expected to rise, though overall environment is considered benign. — Analyst acknowledged

    low

    Q&A highlights

    8

    “I think great question, Vivek. I would firstly like to say that what is working for us is structural. See, our focus on delivery and then therefore, pushing the boundaries on 20-minute delivery is structural, and we believe that will allow us to gain share going forward.”

    Management outlines the structural drivers (delivery, menu innovation, regional focus, expansion, culture) behind their continued bullish outlook and market share gains despite general consumer moderation.

    asked by Vivek M.

    2 min read6 chapters

    Detailed Narrative

    01

    FY25 Performance and Strategic Actions

    FY25 was a landmark year for Jubilant FoodWorks, with H2 performance setting new benchmarks. The Group achieved system sales of almost $1.1 billion, and its network expanded to over 3,300 stores, adding 238 stores during the year. Strategic investments included implementing free delivery, which initially reduced average ticket prices but is now seeing growth again, leading to record new customer acquisition. Domino's India EBITDA broadly aligned with revenue growth, maintaining margins despite increased delivery mix.

    02

    New Product Innovation and Menu Expansion

    The company accelerated its pace of new product innovation, introducing exciting offerings such as chicken products, Volcano Pizza, new cheese burst ranges, and Big Big Pizza. These innovations, supported by strong media investments, are driving momentum and incremental demand. Chicken products, in particular, are exceeding expectations, with supply constraints leading to rationing in some regions. Management believes the chicken range has the potential to become a Rs. 1,000 crore platform.

    03

    International Business Performance (DP Eurasia, Sri Lanka)

    DP Eurasia completed a year under JFL, recording Rs. 3,071 crore in system sales for FY25, healthy profitability, and high free cash flow. Domino's Turkey achieved 0.4% LFL growth in FY25, building on a high base of 29.2% from the previous year. COFFY, a Turkish brand, expanded its network to 160 cafes across 36 cities, contributing Rs. 295 crore to DPEU system sales. Sri Lanka demonstrated a significant turnaround, achieving its highest-ever revenue of Rs. 81 crore with a record growth of 45.6%.

    04

    Store Expansion and Network Growth Plans

    The group's network expanded to 3,316 stores in FY25, with 238 net additions across all geographies. For FY26, the company plans aggressive expansion, targeting 280 new Domino's stores (250 in India, 30 in Turkey), 50 COFFY cafes, and 30 Popeyes stores. The geographic focus for Popeyes expansion will primarily be North, South, and Delhi NCR, with evaluation for West region expansion.

    05

    Margin Management and Cost Efficiency

    Despite offering free delivery, Domino's India maintained a 14.5% margin, which was near flat year-on-year. Consolidated EBITDA for FY25 was Rs. 1,037 crore, with a margin of 12.7%. Management aims to improve standalone EBITDA margins by 200 basis points over the next three years (by FY28). Investments in newer brands like Hong's, Dunkin', and Popeyes are currently impacting overall JFL margins, but the company is curtailing expansion in Dunkin' and Hong's to focus on Popeyes to correct this drag.

    06

    Technology and Operational Excellence

    JFL launched Elate, India's first Android-based Point-of-Sale system, developed in-house to streamline operations, personalize customer journeys, and boost employee productivity. The company leverages its foodtech capabilities, including data analytics for rider forecasting and optimized discounting strategies. Management believes their own delivery fleet and technological investments provide a competitive edge in the delivery market.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.