Jubilant FoodWorks relies on Popeyes’ strong performance to offset softer growth at Domino’s India, as it maintains focus on margin targets despite rising costs and changing consumer trends.
Jubilant FoodWorks is leaning on Popeyes to offset softer growth at Domino’s India, even as the company says it remains on track for its medium-term margin target. In its first-quarter FY27 earnings commentary, the restaurant operator said Popeyes posted 45% like-for-like growth, helped by product upgrades, heavier brand-building and stronger store execution, while Domino’s comparable sales rose 2.5% against a tougher base and rising operating costs.
Chief executive Sameer Khetarpal said the company sees enough consumer demand in the market and does not view the slowdown as a category problem. He pointed to protein-led eating trends, stronger macro indicators such as car sales and GST collections, and said the company has performed well where execution has been tight. The remarks build on a pattern seen in earlier quarters, when Business Standard reported that Domino’s India delivered 5% like-for-like growth in Q3 FY26 while Popeyes posted double-digit gains.
The company also said it is still aiming for 5% to 7% like-for-like growth at Domino’s over the year, with Q2 expected to improve from Q1. Khetarpal said the dine-in business needs a sharper recovery, particularly for solo meals under ₹250, which have been hit as delivery platforms lowered minimum order values. He outlined a three-part response centred on better service, targeted offers and a more tailored menu, while noting that the first goal is to stop the decline in dine-in sales.
Margins remain under pressure from LPG, labour and raw material inflation, but Jubilant said gross margin held at 75.5% and that it is still working towards 200 basis points of EBITDA margin expansion over three years. Chief financial officer Suman Hegde said the company had cut a projected 200-basis-point cost headwind to just 20 basis points in the quarter through price increases and efficiency gains. The company also reiterated capital spending of ₹750 crore to ₹900 crore for FY27, with more of that spend now directed towards new stores rather than supply-chain build-out, and said free cash flow has turned positive.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
