Shares of Jubilant FoodWorks Ltd. surged as the same-store sales of the Domino’s Pizza franchise it operates rose the most in two years after two straight quarters of decline.
Domino’s Pizza’s same-store sales grew 6.5 percent in April-June after contracting 7.5 percent and 3.3 percent in the last two quarters, respectively, according to a stock exchange filing.
“Our focus on delivering better value for money and driving innovation has helped bring back strong growth in Domino’s Pizza,” Pratik Pota, whole-time director and CEO, Jubilant FoodWorks, said in the filing. The company also made significant progress towards reducing losses at Dunkin’ Donuts, he said.
In January this year, the company had said it will focus on profitability, partly by closing non-profitable stores. It decided shut down eight Domino’s restaurants and 13 Dunkin’ Donuts outlets in the January to March period. Jubilant FoodWorks also announced plans to cut costs.
Jubilant FoodWorks’ net profit rose 26 percent in the first quarter of the current financial year to Rs 24 crore over the year-ago period. Revenue grew 11.5 percent to Rs 679 crore. The company beat Bloomberg consensus estimates on both parameters.
- Earnings before interest, tax, depreciation and amortisation increased by 37.9 percent to Rs 80 crore.
- Operating margins rose to 11.8 percent from 9.5 percent in the year-ago period.
The company’s Chief Financial Officer, Sachin Sharma, will step down on July 21, it said in a separate exchange filing, and the board will name his replacement in due course.
Shares of the quick service restaurant chain operator rose 6.7 percent to a four-month high on the BSE.