Analyst Concall
Jubilant Food to tweak capex as Popeyes 2nd growth engine now
This story was originally published at 19:04 IST on 13 August 2026
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--Jubilant Food: Popeyes second growth engine for co now
--CONTEXT: Jubilant FoodWorks mgmt's comments in post-earnings analyst call
--Jubilant Food: Still see FY27 capex at INR 7.5 bln to INR 9 bln
--Jubilant Food: Dine-in format working better on high streets
--Jubilant Food: Must improve pdt propositions to grow dine-in contribution
--Jubilant Food: Capital allocation to be focused on Domino's, Popeyes
--Jubilant Food: See more headroom for price increase if challenges persist
--Jubilant Food: Input, labour costs primary headwinds
--Jubilant Food: Price hikes, like-for-like growth levers to fight pressure
--Jubilant Food: Restricted input, labour cost impact to 20 bps in Q1
--Jubilant Food: See massive headroom to grow in pizza category
--Jubilant Food: Time to expand presence on high streets not too far
By Gunjan Rajput and Shakshi Jain
NEW DELHI – Jubilant FoodWorks Ltd. said Popeyes has emerged as its second growth engine, and the company will focus capital allocation on expanding both Domino's and Popeyes while continuing to invest in its existing store network and technology. The company maintained its capital expenditure target for 2026-27 (Apr-Mar) at INR 7.5 billion to INR 9 billion. "...of course the profile of that capital, like I want to reiterate, is now more indexed on investment behind new store expansion. Now, of course Domino's, but now with Popoyes also becoming a growth sector, that's also coming in to have a play there," a top executive told analysts in a post-earnings conference call Thursday.
The company said Popeyes' growth is being driven by product quality, brand-building, and strong execution on store openings. In a letter to its shareholders, the company said that Domino's India delivered 6.5% order growth in the June quarter and 2.5% like-for-like growth despite strong 11.6% like-for-like growth in the same quarter last year. Popeyes continued its exceptional momentum, with revenue growth of 97% and like-for-like growth of over 40% for the third consecutive quarter. Across the group, the company net added 76 new stores during the quarter.
As per the company, Popeyes still has significant headroom to improve average daily sales. The company's capital allocation will increasingly be directed towards Domino's and Popeyes store expansion, while investments in large supply-chain assets have peaked.
On Popeyes, the management said the next focus is to improve average daily sales and achieve earnings before interest, taxes, depreciation, and amortisation profitability, adding that the brand's progress has been faster than anticipated. The company said it aims to build Popeyes into a profitable INR-10-billion brand.
The company said it expects to expand Popeyes' presence through more high-street stores, adding that the time for such expansion "is not very far away."
On Domino's, the management said there is "massive" headroom to grow the pizza category, given low penetration and frequency of consumption. "The headroom to grow is massive," the executive said.
On the dine-in business, the management said the format is working better in high-street locations, while the company needs to sharpen its product propositions to encourage customers to visit stores. It said the company is segmenting stores based on dining potential and is working on differentiated menus, offers, and partnerships to drive traffic.
On margins, the management said input and labour costs remain key headwinds, but price hikes, efficiency measures, and like-for-like growth are being used to offset the pressure. It said there is more headroom for price increases if the cost environment worsens. The company also said further price increases, efficiency measures, and lower wastage helped restrict the impact to around 20 basis points in the June quarter.
The company's net profit grew over 4% to INR 696 million from INR 667 million in the year-ago quarter. Analysts had pegged the net profit at INR 700.22 million. The company's revenue rose over 9% year-over-year to INR 18.49 billion, below analysts' consensus estimate of INR 19.29 billion.
Thursday, shares of the company closed 1.4% higher at INR 491.55 on the National Stock Exchange. End
Edited by Deepshikha Bhardwaj
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