Jubilant Foodworks Q3FY25 Earnings Call: Key Takeaways & Strategic Growth

India, Sri Lanka, Bangladesh, and Turkey's master franchisee of Domino's Pizza, Jubilant Foodworks, declared a robust Q3FY25 financial performance. The company registered robust revenue growth, addition of stores, and strategic innovations cementing its dominance in the Quick Service Restaurant (QSR) segment. **Financial Performance & Growth** Jubilant Foodworks reported Q3FY25 revenue of ₹21.5 billion, with a massive 56.1% YoY growth. This was spearheaded by Domino's India, its largest segment, with robust international market performance. Key financial takeaways: * Domino's India same-store sales (LFL) up 12.5% YoY, with 24.7% delivery LFL growth. * Standalone EBITDA of ₹3.1 billion, with an EBITDA margin of 19.4%. * Gross margin of 75.1%, marginally down due to inflation and higher discounting. * 46,700 active delivery riders, improving efficiency and reducing delivery time. **Store Expansion & Market Penetration** Jubilant Foodworks is aggressively scaling up its footprint, entering new geographies and strengthening existing ones: * 67 new stores added in India, reaching 2,139 stores across 466 cities. * Turkey operations posted revenue of ₹5 billion, a 99.5% QoQ growth. * Sri Lanka and Bangladesh reported robust growth, with Sri Lanka revenue up 65.4% YoY and Bangladesh revenue by 38.6% YoY. * To scale to 1000+ cities, capitalizing on rising demand in unpenetrated markets. **Strategic Initiatives & Innovation** Jubilant Foodworks is prioritizing continuous innovation in product offerings and customer connect: * New product launches: Launching Cheese Volcano Pizza and three new flavors in the Cheese Burst range to increase Domino's premium offerings. * Chicken product expansion: To address growing demand for chicken-based offerings, the company introduced a nationally available chicken range from ₹99. * Digital & app growth: The company's app of Domino's had 14 million monthly active users, with app installations growing 28.6% YoY. * Enhanced delivery experience: The company's 20-minute delivery program has enhanced customer satisfaction and competitive edge. **Competitive Landscape & Challenges** * Despite Jubilant Foodworks having reported strong growth, it is faced with some challenges: * Inflationary pressures leading to food price inflation, impacting gross margins. * High competition in the QSR segment, especially on aggregator platforms, requiring strategic promotions and discounting. * Investment in store growth & technology impacting near-term profitability but ensuring long-term scalability. **Future Outlook & Growth Strategy** Jubilant Foodworks will sustain its growth trajectory through: * Aggressive store expansion in new and existing markets. * Enhancing product innovation, particularly in the chicken and premium pizza segments. * Enhancing digital engagement and leveraging app-based customer acquisition. * Enhancing cost structures to support long-term profitability. * Expanding international business, with a focus on Turkey, Sri Lanka, and Bangladesh. **Conclusion** Jubilant Foodworks' Q3FY25 performance reflects its strong market presence, innovative growth strategies, and customer satisfaction focus. With an expansion project, product innovation, and operational efficiency, the company is well positioned to maintain leadership in the fast-growing QSR segment. Investors and stakeholders can look forward to relishing sustained momentum, fueled by digital transformation, store growth, and evolving consumer trends. **On the Charts** Previously stock has rallied posting bouncing/crossing from 200EMA...