Things are beginning to look up in India for Domino’s months after Jubilant FoodWorks overhauled its business.
According to Quartz, Jubilant Foodworks, the master franchisee for Domino’s Pizza and Dunkin’ Donuts in the subcontinent, has reported a two-fold jump in its net profit at Rs 48.47 crore on a year-on-year basis during the July-September quarter.
In May this year, Jubilant announced that it stepped up measures to slash costs by shutting down loss-making stores. Subsequently, it launched its biggest product upgrade to drive up profitability across its 1,176 stores.
In its earnings for the quarter ended Sept. 30, Jubilant, which also operates Dunkin’ Donuts in India, registered a net profit of Rs48.5 crore, a 124.7% jump over the same period last year. Revenue was up 9.2% at Rs726.6 crore, the company said in a filing to the stock exchange on October 26. Last financial year, same-store sales growth—a measure of yearly growth in sales for restaurants open for at least two years—dropped to negative 7.5%. This quarter, the number stood at 5.5%.
Meanwhile, the company has closed down 13 Dunkin’ Donuts stores, apart from eight of Domino’s Pizza outlets, since the fourth quarter of the last financial year. It also plans to halve the losses at Dunkin’ Donuts during the current financial year.
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