Jubilant FoodWorks, the operator of popular brands like Domino’s Pizza and Dunkin’ Donuts, is expected to report strong sales growth for the March quarter, outpacing rivals such as KFC, McDonald’s, and Burger King while the broader Indian fast-food sector grapples with inflation-driven consumer belt-tightening and intensifying local competition.
According to multiple analysts cited by Reuters, same-store sales for American fast-food chains are likely to post flat to mid-single-digit growth, weighed down by reduced consumer spending despite aggressive promotional offers. In contrast, Jubilant has already disclosed a 12.1 per cent rise in like-for-like sales in India for the quarter.
Analysts credit Jubilant’s performance to its focus on digital channels, strategic discounts through third-party platforms, and the removal of delivery charges for app-based orders. These initiatives, coupled with investments in 20-minute in-house delivery, have helped the company reduce reliance on aggregators and boost customer engagement.
“Jubilant is performing the best of the lot,” said Karan Taurani, analyst at Elara Securities. “Unlike KFC and McDonald’s, which have little differentiation and still depend heavily on dine-in and third-party delivery, Jubilant has built a more robust digital ecosystem.”
The broader sector’s earnings season begins with Sapphire Foods, a KFC and Pizza Hut franchisee, set to report results on Wednesday. Other major players have yet to release their quarterly updates.
Despite Jubilant’s impressive 34 per cent year-on-year jump in consolidated revenue to 21.07 billion rupees (around $250.05 million), analysts warn that profit margins across the sector may remain under pressure. Higher raw material and marketing costs are expected to weigh on profitability, even as Jubilant aims to improve its core earnings margin through cost controls.
While near-term challenges persist, some analysts remain optimistic about the sector’s future. Preeyam Tolia of Axis Securities noted, “From a long-term perspective, the fried chicken segment remains a key growth driver in India, though it may face headwinds over the next couple of quarters.”