BENGALURU (Reuters) -Jubilant FoodWorks, Domino’s Pizza’s Indian franchisee, reported a near two-fold surge in first-quarter profit on Friday, as value meals attracted budget-conscious customers.
Consolidated net profit rose to 558 million rupees ($6.65 million) for the quarter ended June 30, from 289.2 million rupees a year earlier, it said in an exchange filing.
Persistently high inflation has been prompting consumers to pare back spending on dining out or ordering in. India’s retail inflation hovered around 5% throughout the quarter amid high food prices, increasing cost pressure on the quick-service restaurant sector.
To spur demand Jubilant offered value deals such as meals for 99 rupees ($1.18), in a quarter that also coincided with the T20 Cricket World Cup and school summer vacations.
Jubilant’s revenue from operations rose 45% to 19.33 billion rupees in the quarter.
The company’s costs rose 34%, as prices of essential ingredients such as vegetables, chicken and cheese rose.
Burger King’s India operator Restaurant Brands Asia posted a narrower first-quarter loss as offers and discounts swayed customers. Meanwhile, rival Sapphire Foods India and Westlife Foodworld reported a bigger-than-expected decline in profit amid frail demand.
Jubilant’s shares closed 0.3% higher ahead of the results.
($1 = 83.9250 Indian rupees)
(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Eileen Soreng)
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