Jubilant Foodworks Limited — Q4 FY25 earnings call

Call held 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

  • 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

  • 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.

Key financials

  1. Consolidated Revenue ₹8,142 Cr
  2. Standalone Revenue ₹6,105 Cr +14.3%YoY
  3. Domino's India Revenue Growth 13.4%
  4. Domino's India LFL Growth 7.5%
  5. Consolidated EBITDA ₹1,037 Cr
  6. Consolidated EBITDA Margin 12.7%
  7. Standalone EBITDA ₹857 Cr +12.4%YoY
  8. Domino's India Margin 14.5%

What they filed

Q1 FY27: revenue up 13.7%, net profit up 6.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,955 2,151 2,095 2,261 2,340 +20%2,429 +13%2,499 +19%2,570 +14%
EBITDA396 402 392 438 476 +20%484 +20%485 +24%504 +15%
Net profit67 43 49 94 195 +191%73 +70%82 +67%100 +6%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

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

Capital allocation

high confidence
  • Debt Debt disclosed
    • Refinance Refinancing of Turkey debt to lower cost of borrowing
    The acquisition of DP Eurasia has also now completed a year through records high system sales, healthy profitability and high free cash flow generation from Turkey, we are able to bring down their local debt. And starting H2 FY '26, we will now start funding interest cost along with reduction in acquisition debt.

Guidance & targets

Store Expansion - Domino's India

  • New store openings Store Expansion - Domino's India · FY26 · High confidence 250 stores
    Our network guidance is as following. We will open 280 Domino's stores with a split of 250 in India, 30 in Turkey.

    — Sameer Khetarpal

Store Expansion - Domino's Turkey

  • New store openings Store Expansion - Domino's Turkey · FY26 · High confidence 30 stores
    Our network guidance is as following. We will open 280 Domino's stores with a split of 250 in India, 30 in Turkey.

    — Sameer Khetarpal

Store Expansion - COFFY

  • New cafe openings Store Expansion - COFFY · FY26 · High confidence 50 cafes
    In COFFY, we plan to open 50 cafes.

    — Sameer Khetarpal

Store Expansion - Popeyes

  • New store openings Store Expansion - Popeyes · FY26 · High confidence 30 stores
    And in Popeyes, we plan to open 30 stores.

    — Sameer Khetarpal

Profitability - Standalone EBITDA Margin

  • Improvement in EBITDA margin Profitability - Standalone EBITDA Margin · next 3 years (by FY28) · High confidence 200 bps
    So, I think we said in the Investor Day as well, right? We had called out we said over the next 3 years, FY '28. And we said it's a minimum of, right? Of course, it all depends.

    — Suman Hegde

What to watch in Q1 FY26

DP Eurasia Debt Reduction

H2 FY26 / starting this year
Current Debt is almost half of last year's, refinancing underway.
Target Funding 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.

Risks & concerns

  • Macro challenges in DP Eurasia (Turkey)

    medium

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

    Management acknowledged

  • Competitive intensity in delivery and labor force

    medium

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

    Analyst acknowledged

  • Raw material inflation

    low

    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

Q&A highlights

7 direct
Industry Outlook and Market Share Gain Direct
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.

Dine-in Revenue Sustainability Direct
So, I genuinely believe when some of these bases get corrected, dine-in may come back and even surprise me. So I stay very optimistic about dine-in. We are seeing for the first time order growth, right, in dine-in, backed by some of the initiatives that we've taken that Rs. 99 meal that we launched exactly a year ago now with all the marketing support...

Addresses concerns about declining dine-in revenues, with management expressing optimism for a turnaround driven by value offers and improved store experience.

Asked by Vivek M.

Gap between Domino's and Overall JFL Margins Direct
So, it is, I think, Suman, can add, this is largely see investments in our emerging brands, right? And when we have like three other brands, Hong's, Dunkin' and Popeyes. And as you would see, we have already taken the stance of curtailing any or not doing any expansion in Dunkin' and Hong's. This is the call we took mid of the year and focusing majorly on Popeyes, you will see that this getting corrected.

Explains the margin drag from new brands and outlines the strategy to correct it by focusing on Popeyes and curtailing expansion in Dunkin' and Hong's.

Asked by Vivek M.

Geopolitical Risk and Turkey Investments Direct
So I feel good about the macroeconomic situation in Turkey and the core thesis that we had, it's the largest consumer base outside of Russia in Europe and the youngest population with almost 3.5x, 4x of per capita GDP versus India. All of those things are intact, and therefore, you see very solid performance of both Domino's and COFFY in Turkey. So I will not worry too much about macroeconomic factors or anything geopolitical risk impacting Turkey.

Addresses investor concerns about the stability and profitability of the Turkey business amidst geopolitical volatility and high inflation, with management expressing confidence.

Asked by Tejash Shah

Delivery Driver Shortage Partial
So overall, of course, we do see pressure. It happens during the season around April when there is harvesting, right? But these are minor variances, Jignanshu. So like they don't even come to me. The teams are very capable of using data to forecast how much and how many riders they need, what will be the absenteeism.

Acknowledges industry-wide pressure on delivery driver availability but asserts the company's ability to manage it due to its own fleet, data capabilities, and better employee value proposition.

Asked by Jignanshu Gor

Discounting Strategy and Impact Direct
So discounting as a percentage has come down. Now of course, specifically talking about Big Big Pizza, right? So it is a Rs. 700 and Rs. 800 product, right? So it adds to my average ticket price. And therefore, my delivery cost as a percentage comes down, my insider crew cost as a percentage comes down and my rent as a percentage of that order comes down.

Clarifies that overall discounting has decreased, and specific high-value product discounts (like Big Big Pizza) are strategic to increase average ticket price and improve unit economics, leading to customer acquisition.

Asked by Sheela Rathi

Popeyes Rollout Plan and State Focus Direct
Yes. So, from a state perspective, Sheela, we want to get to a number of like close to 100 and therefore, a lot of marketing investments then starts to look very meaningfully or have a larger base and you can buy media inventory... Geographic focus will be largely around North. South will be the biggest geographic focus, then Delhi NCR, and we are evaluating West as we speak. But no further expansion beyond this.

Provides clarity on the strategic geographic focus for Popeyes expansion, aiming for a critical mass of stores to leverage marketing and achieve profitability.

Asked by Sheela Rathi

Raw Material Inflation Outlook Direct
Yes, I think we are. I think there are a few commodities which have gone up, especially in cheese, oil and coffee, right? These are the, I would say, the top three... But overall, I think the inflationary environment is, I would say, relatively benign because oil prices have been stable.

Management acknowledges specific inflationary pressures but expresses confidence in managing them through internal efficiencies and a generally benign broader environment due to stable oil prices.

Asked by Shirish Pardeshi

2 min read 6 chapters

Detailed narrative

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.

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.

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%.

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.

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.

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.
View original transcript

More Consumer Services earnings calls