Revenue from operations grew by 5.59% to Rs 1,309.66 crore in the quarter ended 30 June 2023.

The company said that the increase in revenue was driven by Domino's Delivery channel sales which increased by 8.4%.

The average daily sales per store (ADS) of mature stores, came in at Rs 81,049, up by 2.7% sequentially. The Domino's Like-for-Like (LFL) came stood at negative 1.3% in Q1 FY24 as compared to 28.3% registered in Q1 FY23. LFL sales growth refers to the year over year growth in sales for non-split restaurants opened before previous financial year.

In a challenging inflationary environment with key input costs holding firm, the company was able to expand its operating margins sequentially on account of higher productivity led-cost optimization initiatives, said the company.

Profit before tax dropped 26.27% to Rs 101.39 crore in Q1 FY24 from Rs 137.52 crore reported in the corresponding quarter previous year.

EBITDA declined 9.2% to Rs 276.4 crore in the first quarter of FY24 as against Rs 304.5 crore recorded in Q1 FY23. EBITDA margin reduced to 21.1% in Q1 FY24 as compared to 24.6% posted in the same period a year ago. Meanwhile, PAT margin decreased to 5.7% down by 240 bps in Q1 FY24.

During the quarter, the company opened 30 new stores in India, resulting in a network of 1,891 stores across all brands. With the addition of 23 new stores and entry in one new city, Domino's India expanded its network strength to 1,838 stores across 394 cities. The Company opened four new restaurant for Popeyes and entered two new cities – Manipal and Coimbatore - taking the network tally to 17 restaurants across four cities.

In Hong's Kitchen, two new stores enhanced the network to 15 stores across three cities. In Dunkin', one new coffee-first store was opened. 9 out of 21 Dunkin' stores are now as per the brand's new Coffee-first identity.

The company said that the consumer engagement remain elevated with all time-high quarterly app downloads at 10.0 million, up by 22.0% and MAU (App) came in at 10.3 million.

In Sri Lanka, the system sales growth was 13.1% and the company opened two new stores taking the network strength to 50 stores. In Bangladesh, system sales grew by 69.6% and the network expanded to 20 stores.

Shyam S. Bhartia, chairman and Hari S. Bhartia, co-chairman of Jubilant FoodWorks said, “Our performance reflects our continuation of the strategic direction we have opted for in the current inflationary environment. We continue to bolster our value proposition further, look inwards to improvise our systems and processes while expanding margins and finally continue to make investments further to strengthen our unique competitive advantages in operations and technology.”

Sameer Khetarpal, CEO and MD of Jubilant FoodWorks commented, “Our strategy of customer first and technology forward has started to yield positive results. ADS for mature stores grew by 2.7% sequentially, decline in ticket size was arrested, app-installs, loyalty enrolments reached a new peak, and we executed efficiently to expand EBITDA margin by 97 bps versus the previous quarter.”

Jubilant FoodWorks (JFL) is India's largest foodservice company and is part of the Jubilant Bhartia group. Incorporated in 1995, JFL holds the exclusive master franchise rights from Domino's Pizza Inc. to develop and operate the Domino's Pizza brand in India, Sri Lanka, Bangladesh, and Nepal. In India, JFL has a strong and extensive network of 1,838 Domino's stores across 394 cities.

Shares of Jubilant FoodWorks gained 2.23% to Rs 477.10 on the BSE.