Jubilant FoodWorks Ltd (JFL), the master franchisee of Domino’s Pizza in India and several other markets, with a market capitalization of INR 31,517 crore, on Wednesday announced plans to significantly expand its store network. Over the medium term, the company intends to increase the number of Domino’s Pizza outlets from 2,793 to more than 5,500 in six global markets.
JFL operates in India, Turkey, Bangladesh, Sri Lanka, Azerbaijan and Georgia. Last year, its subsidiary, Jubilant Foodworks (NS:) Netherlands BV (JFN) has acquired DP Eurasia, the master franchisee of Domino’s in Turkey and Georgia, thereby expanding JFL’s presence outside Asia.
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As of March 31, 2024, JFL Group’s store network covers six markets and includes 2,990 outlets across five brands. JFL owns the franchise rights to three global brands – Domino’s Pizza, Popeyes and Dunkin’ – and operates two of its own brands: Hong’s Kitchen in India and COFFY in Turkey.
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However, diving into the basics with ProTips, some interesting pieces of information surfaced. The company operates with healthy gross margins, which is always a good sign for a well-run business. In fact, in March 2024, the company reported a net profit margin of 12.67%, the highest since September 2022.
The stock also has lower volatility than the broader markets, making it an easy stock to hold, especially for those who are more conservative. Dividend lovers will be happy to know that the company has been paying dividends for the last 9 years in a row.
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In India, JFL has set an ambitious target of opening 4,000 Domino’s stores over the medium term, up from the previous target of 3,000. Domino’s India is close to the 2,000 outlet mark and currently has 1,995 stores in 421 cities, with 179 added in the last year alone new stores.
“FY24 is a pivotal year for JFL, transforming us from India’s largest foodservice company to one of the largest in emerging markets,” said Hari S. Bhartia, co-chairman of JFL, during the company’s conference call on Wednesday.
For the March 2024 quarter, JFL reported a 23.9% year-on-year increase in revenue to INR 1,572.8 crore and a staggering 632% growth in profit to INR 208.9 crore. This increase in profit was largely driven by a net gain of INR 170.2 crore on revaluation of previously held interests following the acquisition of DP Eurasia.
CEO and Managing Director Samir Khetarpal highlighted that Domino’s India saw positive momentum in like-for-like sales in the fourth quarter, driven by strategic initiatives such as strengthening regional infrastructure, improving execution, brand refresh and offering targeted delivery fee waivers to drive demand during time is a sluggish period.
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