Its the 2nd consecutive quarter of growth, better than last year when same-store sales fell by 2.4%.
Jubilant FoodWorks, India’s largest QSR group has improved its same-store sales for the second straight quarter in the April-June period with 4.6% growth year on year. While it indicates a recovery in its business from a year ago when same-store sale fell 2.4%, the growth rate was less than the January-March quarter’s gain of 6.6%.
The week, it reported 6% year-on-year increase in its net profit for the quarter at INR 29.5 crore while its sales rose 20% at INR 570.7 crore. The numbers fell short of Street expectations and the company’s stock fell 2.78% from its previous close to end at INR 1,768.6 on the BSE yesterday.
The company expressed satisfaction with its performance. “We are witnessing good uptake from virgin cities where we are first to introduce the pizza concept and where we enjoy certain cachet being an international brand that talks Indian,” said Ajay Kaul, CEO, Jubilant FoodWorks.
During January-March quarter, Jubilant had broken its streak of six quarters of either stagnant or declining growth. And it has outperformed rivals Yum! Restaurants, and Westlife Development which have been reporting decline in same-store sales every quarter for about two years now, indicating a continued slowdown in the country’s fast-food market despite fighting back with cheaper menu items.
