If you don’t get Zomato shares via IPO, you could look at Jubilant Foodworks too

• Shares of Jubilant Foodworks, Domino’s India franchisee, surged more than 10% on July 22 on better than expected June quarter results.
• Pandemic has helped Domino’s mobile app downloads grow faster and closer to the market leader in delivery platforms like Swiggy.
• While it is still short of Zomato and Swiggy, staying with changing times seems to have helped Jubilant.
• On the other hand, the company continues to build physical stores. 20 new Domino's stores were opened in June quarter and another 150-175 stores are likely in FY22.

The 10% plus rally in shares of Jubilant Foodworks on June 22 reflects a surprisingly good set of earnings in the April-June quarter, also the period in which the second wave of COVID-19 pandemic peaked. While people stayed away from dining out during the lockdown, online orders for pizzas and burgers through its own apps kept Jubilant’s business buzzing.



Typically, one would compare Jubilant Foodworks with another food chain operator like Burger King. However, recent data suggests the Domino’s franchisee in India is fast catching up with food delivery apps like Zomato and Swiggy.

Domino’s app has seen maximum downloads (24 million additional downloads) in FY21. The management attributed 73% on year increase in downloads to doubling of performance marketing spends, availability of the best in class consumer offers on the app, improved consumer experience and promotions of NPD (Pasta pizza), said a report by Phillip Capital.

Interestingly, the introduction of the app in Hindi has increased the number of downloads, and management anticipates this trend to continue after the software is released in other vernacular/regional languages, added the report.

From January 2021, Domino’s pizza app in India has seen over 7 million downloads getting closer to delivery platform Swiggy’s over 11 million downloads and Zomato’s 21 million downloads.



In June alone, Domino’ Pizza saw 1.3 million mobile downloads.

While it is still short of Zomato and Swiggy, staying with changing times seems to have helped Jubilant.

The India online food delivery market reached a value of $ 4.35 billion in 2020. It is expected to grow at a compound annual growth rate (CAGR) of 30.1% during 2021-2026, said a report by IMARC Group, a market research company.

The total income for June quarter grew over 120% year-on-year to ₹901 crore taking the profit to ₹69 crore as compared to a ₹74 crore loss last year.

“Domino’s sales almost recovered to pre-covid levels towards the end of 1QFY22 [first quarter of this financial year] backed by continued strong growth in the delivery channel growing 123%,” said a report by Phillip Capital.


The 25-year old Jubilant has not given up on its physical stores.

The company has also beaten market expectations on opening new stores. Despite the challenging scenario, it opened 20 stores of Domino’s in June quarter and has guided for 150-175 stores in FY22.

Digital scale up, broad based ramp up in delivery adoption, multi brand quick service restaurant (QSR) platform, strong management bandwidth and high cash generation will aid the company in riding the robust underlying industry tailwinds, said a report by Axis Capital.







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