Jubilant FoodWorks' Revenue Surges 18% Amid Rival QSRs' Slump

Jubilant FoodWorks' standalone revenue rose 18% YoY, driven by Domino's Pizza, with orders growing 17.3% and like-for-like sales up 11.6%. Margins met expectations, but gross margins slipped 200 bps YoY to 74.1% due to increased investment in growth and margin-dilutive launches. Rivals reported weak same-store sales and softer profitability in Q1, while Jubilant FoodWorks broke away with double-digit SSS growth.

Jubilant FoodWorks has reported a robust start to the fiscal year 2026, with a 59.8% rise in consolidated net profit to Rs 97.2 crore. The company's revenue from operations surged by 17% to Rs 2,260.9 crore, driven by a 17.7% increase in Dominos India revenue. The company's international segment also performed well, with Turkey and Sri Lanka reporting revenue growth of 12.4% and 42.4% respectively [1].

Domino's India's like-for-like sales (LFL) grew by 11.6%, while Dominos Delivery LFL increased by 20.1%. The company's operating EBITDA margin improved to 19.4% in Q1 FY26, up from 19.8% in Q1 FY25, despite a slight decline in gross margins due to increased investment in growth and margin-dilutive launches [1].

The company expanded its store network to 3,387 stores with the addition of 71 net new stores in Q1 FY26. This includes 58 new stores in India, 12 in Turkey, and 1 in Bangladesh. As of 30 June 2025, Jubilant FoodWorks operates 2,240 Domino's outlets, 60 Popeyes stores, 33 Hong's Kitchen outlets, and 29 Dunkin' stores in India alone [1].

Sameer Khetarpal, CEO and MD of Jubilant FoodWorks, expressed optimism about the company's performance, stating that Q1 has been a stellar start and setting the tone for a dynamic year ahead. The company's focus remains on margin expansion, digital asset growth, and achieving 20-minute delivery targets [1].

In contrast, traditional fast-food stocks have shown mixed results in Q2 2025. Yum! Brands reported a 9.6% revenue increase but saw a decline in profit margins and missed EPS expectations. Dutch Bros, on the other hand, reported a 28% revenue increase and a 73.1% net income increase, driven by strong same-store sales and store expansion. Jack in the Box, however, reported a 9.8% revenue decline, missing estimates [2].

Jubilant FoodWorks' performance stands out among its peers, with double-digit same-store sales growth and a strong focus on digital transformation and expansion. The company's stock has shed 0.47% to currently trade at Rs 636.90 on the BSE [1].

References:
[1] https://www.business-standard.com/markets/capital-market-news/jubilant-foodworks-posts-nearly-60-yoy-rise-in-q1-pat-group-store-count-rises-to-3-387-125081400769_1.html
[2] https://www.ainvest.com/news/traditional-fast-food-stocks-q2-review-yum-brands-peers-2508/