Domino's India operator beats Q2 profit view on demand for cheaper items (updated)

Jubilant FoodWorks

11/11/2024 10:24

(Adds background, revenue in paragraphs 4-7)
       Nov 11 (Reuters) - Jubilant FoodWorks  JUBI.NS , which
operates the Domino's Pizza  DPZ.N  brand in India, posted a
smaller-than-expected fall in second-quarter profit on Monday,
as cheaper menu items attracted budget-conscious customers.
    Consolidated net profit fell to 640.5 million rupees ($7.59
million) for the quarter ended Sept. 30 from 972 million rupees
a year earlier.
    Analysts had estimated 635.2 million rupees, according to
data compiled by LSEG.
    Persistently high inflation has prompted consumers in the
world's most populous country to pare back their dine-out
spending, forcing fast-food chains to roll out cheaper menu
items such as Domino's' four-course meal for 99 rupees ($1.2).
    This, as well as its move to open more stores, paid off as
Jubilant's revenue from operations rose nearly 43% to 19.55
billion rupees for the September quarter.
    The results come in contrast to Jubilant's peers' numbers.
    Sapphire Foods India  SAPI.NS , which operates Pizza Hut and
KFC, posted a surprise loss, while Burger King operator
Restaurant Brands Asia  RESR.NS  booked a bigger loss. Profit at
Westlife Foodworld  WEST.NS , which runs McDonald's, slid.

($1 = 84.3550 Indian rupees)
    

 (Reporting by Praveen Paramasivam and Ashna Teresa Britto;
Editing by Janane Venkatraman)
 ((AshnaTeresa.Britto@thomsonreuters.com;))