Same-store-sales (SSS) growth contracted at 2.4 percent in the first quarter of current financial year 2014-15 compared to 6.3 percent growth in same quarter last year. SSS growth has been in negative for the third consecutive quarter followed by negative 3.4 percent in Q4FY14 and negative 2.6 percent in Q3FY14.
Jubilant Foodworks , which operates Domino's pizza chain in India, missed street expectations on every parameter with the first quarter (April-June) net profit falling 18.5 percent to Rs 27.7 crore compared to Rs 34 crore in the year-ago period, impacted by weak operational performance. "Aligned to the overall subdued consumption pattern coupled with inflationary impact on costs, opening of new Domino’s Pizza restaurants and development of Dunkin’ brand, the profitability during the quarter stood moderated," the company reasoned. Analysts had expected the Jubilant Bhartia Group Company to report net profit at Rs 32.4 crore on revenue of Rs 485 crore for the quarter. Total income from operations grew by 20.3 percent to Rs 477 crore in the quarter ended June 2014 from Rs 396.5 crore in corresponding quarter of last fiscal, aided by addition to number of restaurants, entry into new cities, ongoing and tactical promotional offers, benefit from the price hike taken and upside from new product launches in Domino’s Pizza and Dunkin’ Donuts. "Restaurant network for Domino’s pizza spans over 158 cities with 772 restaurants. We have also grown our network for Dunkin’ Donuts and we are now present across 11 cities with 34 restaurants," said Ajay Kaul, CEO. Same-store-sales (SSS) growth contracted at 2.4 percent in the first quarter of current financial year 2014-15 compared to 6.3 percent growth in same quarter last year. SSS growth has been in negative for the third consecutive quarter followed by negative 3.4 percent in Q4FY14 and negative 2.6 percent in Q3FY14. During the quarter, operating profit (EBITDA) of the company dropped 11.5 percent on yearly basis to Rs 59 crore and margin declined by 440 basis points to 12.4 percent, which both were expected at Rs 68.3 crore and 14.1 percent, respectively. Margin was impacted by increase in expenditure related to employee cost, rentals, advertising and promotion and Dunkin’ Donuts development, said the company in its filing.
Jubilant Foodworks , which operates Domino's pizza chain in India, missed street expectations on every parameter with the first quarter (April-June) net profit falling 18.5 percent to Rs 27.7 crore compared to Rs 34 crore in the year-ago period, impacted by weak operational performance. "Aligned to the overall subdued consumption pattern coupled with inflationary impact on costs, opening of new Domino’s Pizza restaurants and development of Dunkin’ brand, the profitability during the quarter stood moderated," the company reasoned. Analysts had expected the Jubilant Bhartia Group Company to report net profit at Rs 32.4 crore on revenue of Rs 485 crore for the quarter. Total income from operations grew by 20.3 percent to Rs 477 crore in the quarter ended June 2014 from Rs 396.5 crore in corresponding quarter of last fiscal, aided by addition to number of restaurants, entry into new cities, ongoing and tactical promotional offers, benefit from the price hike taken and upside from new product launches in Domino’s Pizza and Dunkin’ Donuts. "Restaurant network for Domino’s pizza spans over 158 cities with 772 restaurants. We have also grown our network for Dunkin’ Donuts and we are now present across 11 cities with 34 restaurants," said Ajay Kaul, CEO. Same-store-sales (SSS) growth contracted at 2.4 percent in the first quarter of current financial year 2014-15 compared to 6.3 percent growth in same quarter last year. SSS growth has been in negative for the third consecutive quarter followed by negative 3.4 percent in Q4FY14 and negative 2.6 percent in Q3FY14. During the quarter, operating profit (EBITDA) of the company dropped 11.5 percent on yearly basis to Rs 59 crore and margin declined by 440 basis points to 12.4 percent, which both were expected at Rs 68.3 crore and 14.1 percent, respectively. Margin was impacted by increase in expenditure related to employee cost, rentals, advertising and promotion and Dunkin’ Donuts development, said the company in its filing.
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