Domino's India operator reports drop in quarterly profit on higher expenses (updated)

Jubilant FoodWorks

12/02/2025 10:00

(Updates with background throughout)
       Feb 12 (Reuters) - India's Jubilant Foodworks  JUBI.NS 
reported a nearly 35% drop in third-quarter profit on Wednesday,
as the Domino's Pizza  DPZ.N  franchisee's margins were dented
by higher wage costs as well as raw materials such as vegetables
and meat. 
    Jubilant reported profit of 429.1 million rupees ($4.94
million) for the quarter ended December 31, compared to a
year-ago profit of 657.09 million rupees.
    Indian consumers have cut back spending on dining out amid
persistently high food inflation. Jubilant, like other fast food
franchises such as Burger King operator Restaurant Brands Asia
 RESR.NS , has launched value meals to spur spending among
customers.
    Jubilant has been waiving delivery fees on its app orders
and has launched smaller pizzas priced at around a dollar and
lunch combinations for less than two dollars. 
    As of November last year, the company had also not raised
prices on its items for at least two years, despite rising
prices of vegetables, meat, sugar and other food items, in an
effort to gain market share.
    While these measures have aided topline growth, profit
margins have suffered. 
    Revenue from operations for the quarter rose about 56% to
25.51 billion rupees. However, expenses rose 59.3% year on year.
    Core profit margin for the third quarter declined 163 basis
points from last year to 18.7%.


($1 = 86.8775 Indian rupees)

 (Reporting by Ananta Agarwal in Bengaluru; Editing by Eileen
Soreng and Mrigank Dhaniwala)
 ((Ananta.agarwal@thomsonreuters.com;))