Domino’s India franchisee beats Q2 revenue estimates as cheaper pizzas assist demand

BENGALURU/CHENNAI, Oct 25 (Reuters) – Jubilant FoodWorks (JUBI.NS), which operates Domino’s eating places in India, reported a smaller-than-expected 26% fall in quarterly earnings on Wednesday, helped by its transfer to chop prices and launch cheaper pizzas to draw shoppers.

Client items makers and eating places in India have been launching extra reasonably priced merchandise — with decrease enter prices — to maintain prospects coming again when they’re slicing again on bills as a result of excessive price of residing.

The Indian franchisee of Domino’s Pizza (DPZ.N) stated its consolidated internet revenue fell to 972 million rupees ($11.69 million) for the second quarter ended Sept. 30 from 1.32 billion rupees a 12 months earlier.

Analysts, on common, had been anticipating 772.2 million rupees, in response to knowledge from LSEG.

Jubilant, which additionally operates Dunkin’ and Popeyes eating places, earlier this 12 months launched the world’s most cost-effective pizza at 49 rupees and adopted it up with the roll-out of a brand new vary of spicy pizzas beginning at 179 rupees.

It additionally lower prices, together with in packaging.

“Deployment of a number of levers … disciplined price management greater than offset price inflation,” Jubilant, which additionally runs Domino’s shops in Sri Lanka, Bangladesh and Nepal, stated in an investor presentation.

Income from operations climbed 5.2% to 13.69 billion rupees for the reported quarter.

Shares of Jubilant closed up 0.8% at 529.1 rupees on Wednesday.

($1 = 83.1533 Indian rupees)

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