Domino's India operator beats Q2 profit view on demand for cheaper items
Jubilant FoodWorks, which operates the Domino's Pizza brand in India, posted a smaller-than-expected fall in second-quarter profit on Monday, as cheaper menu items attracted budget-conscious customers.
Consolidated net profit fell to 640.5 million rupees ($7.59 million) for the quarter ended Sept. 30 from 972 million rupees a year earlier.
Analysts had estimated 635.2 million rupees, according to data compiled by LSEG.
Persistently high inflation has prompted consumers in the world's most populous country to pare back their dine-out spending, forcing fast-food chains to roll out cheaper menu items such as Domino's' four-course meal for 99 rupees ($1.2).
This, as well as its move to open more stores, paid off as Jubilant's revenue from operations rose nearly 43% to 19.55 billion rupees for the September quarter.
The results come in contrast to Jubilant's peers' numbers.
Sapphire Foods India, which operates Pizza Hut and KFC, posted a surprise loss, while Burger King operator Restaurant Brands Asia booked a bigger loss. Profit at Westlife Foodworld, which runs McDonald's, slid.
($1 = 84.3550 Indian rupees)
