- System Sales: INR22.4 billion, up 13.5% on constant currency terms.
- Consolidated Revenue: INR19.3 billion, up 44.8% year on year.
- EBITDA Margin: 19.8%, lower by 85 basis points year on year, but improved quarter on quarter.
- PAT Margin: 3.1%, higher by 98 basis points year on year and 68 basis points quarter on quarter.
- Store Network: 3,057 stores, up 66 stores quarter on quarter.
- India Revenue: INR14.4 billion, up 9.9% year on year.
- India EBITDA Margin: 19.3%, lower by 178 basis points year on year, but grew by 22 basis points sequentially.
- Domino's India Growth: 8.5%, driven by record high orders and 3% like-for-like growth.
- Domino's India Store Network: Expanded by 34 stores, entering six new cities.
- Monthly Active Users: 12.1 million, up 17.5% year on year.
- Domino's Turkey System Sales: INR7 billion, with 10.3% like-for-like growth.
- COFFY Turkey System Sales: INR656 million, with 8.7% like-for-like growth.
- DP Eurasia Revenue: INR4.6 billion, up 15.4% year on year at constant currency rates.
- DP Eurasia EBITDA Margin: 25%, up 871 basis points year on year, but down 150 basis points quarter on quarter.
- DP Eurasia PAT Margin: 9.2%, up 666 basis points year on year and 300 basis points quarter on quarter.
- Popeyes India Store Network: Crossed 50 stores, serving customers across 21 cities.
- Dunkin' Store Network: Added five stores.
- Hong's Kitchen Store Network: Added five new stores, taking the total to 33.
- COFFY Turkey Store Network: Surpassed 100 stores, now at 105 stores.
Release Date: August 09, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Jubilant Foodworks Ltd (BOM:533155, Financial) achieved a significant milestone of a 3,000-store network across five brands and six countries.
- Domino's India saw an 8.5% year-on-year growth, driven by a 3% like-for-like (LFL) growth.
- The company reported a consolidated revenue of INR 19.3 billion, up 44.8% year-on-year.
- The company acquired new customers at the highest ever rate, indicating strong belief in their core strategy.
- Popeyes crossed a significant milestone of 50 stores in India, showing strong expansion in the market.
Negative Points
- EBITDA margin was at 19.8%, lower by 85 basis points year-on-year.
- The company has not taken any price increase in the last eight quarters, impacting margins.
- There was a 7.5% decline in bill size for Domino's India in Q1 due to reduced delivery thresholds and waived delivery fees.
- Gross margins for DP Eurasia fell sequentially from 75% to 62%, indicating potential cost management issues.
- The company faces challenges in improving dine-in growth, which remains lower compared to delivery growth.
Q & A Highlights
Q: What is causing the divergence in delivery and dine-in growth, and has the INR99 lunch menu impacted sales?
A: Delivery growth is driven by Domino's strong brand proposition, operational excellence, and consumer trends favoring delivery. The INR99 lunch menu has helped stabilize dine-in sales, showing a 2% quarter-on-quarter growth.
Q: Can you explain the improvement in margins from Q4 to Q1 and the outlook for Q2?
A: The improvement is due to better execution and value offerings. While there is a focus on capturing growth and acquiring new customers, significant margin improvement is not expected in the immediate next quarter.
Q: How has the increase in monthly active users (MAUs) impacted sales and customer quality?
A: The 15% increase in MAUs reflects successful customer acquisition and retention strategies. Mature stores have seen record-high orders, indicating strong consumer belief in the brand's value proposition.
Q: What is the financial performance of Popeyes stores that have been open for more than two years?
A: While specific financials are not disclosed, Popeyes is showing strong customer traction and margin improvements. The focus remains on reducing costs and optimizing store size and CapEx.
Q: What is the store opening guidance for Domino's India for this year and next year?
A: The target is to open 180 stores this year, with an increased pace expected in Q2.
Q: Can you explain the sequential 40% top-line growth in DP Eurasia?
A: The growth is partly due to seasonality and the timing of Ramadan. The business shows strong consumer demand and a vibrant economy.
Q: How has the reduction in delivery fees and packaging charges impacted order sizes and customer acquisition?
A: The reduction has led to a higher volume of orders and new customer acquisition, despite a decrease in average order size. This strategy aims to drive repeat business and long-term growth.
Q: What are the plans for expanding Popeyes in new cities versus existing ones?
A: The focus is on entering chicken-eating markets and optimizing store locations. The expansion strategy includes both new cities and strengthening presence in existing ones.
Q: How are the delivery and dine-in performances for Popeyes stores that are more than 1.5 years old?
A: Popeyes follows a strategy of using mall locations for dine-in and high street locations for delivery. Currently, dine-in has a higher share, but delivery is growing.
Q: What is the strategy for Hong's Kitchen and Dunkin' Donuts?
A: The focus is on achieving high store-level profitability and customer satisfaction. Expansion will continue based on the success of these metrics.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
