Jubilant Foodworks, the operator of Domino’s Pizza in India, is expecting to see strong revenues and same-store sales growth due to healthy response on value offers of day by day.
The company to report a profit of Rs .78 crore for the September quarter up from Rs 44 crore posted during the same quarter of last year. It expects sales of Rs 860 crore, while EBITDA is seen at Rs. 150 crore.
Sustained demand environment and benefits from everyday value extended to regular size pizza are likely to drive strong 19% revenue growth, analysts said. It expects same-store sales growth (SSSG) of 18%.
“Strong operating leverage, internal cost-saving initiatives, and lower DD losses to aid 340 bps expansion in EBITDA margin,” the report further added.
Experts meanwhile, expects 22.5% growth in its revenue to Rs 890 crore, while SSSG is likely to be 22%. It expects profit to be at Rs 77.4 crore.
It anticipates the addition of 20 Domino’s stores in 2QFY19. “It has expected EBITDA margin to expand by 250 bps to 16.6% and EBITDA to rises by 44.3% YoY to Rs 150 crore. Analysts see SSSG of 18% as a favourable base and EVD value offers will help. It is also factoring in 20 store additions. It expects EBITDA margin to expand 378 bps YoY.
Key issues to Focus:
- Demand outlook for QSR and pizza space and also competition
- Advantages of cost-saving efforts
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