The company reported revenue from operations of Rs 1,025.9 crore for the reported quarter, up 14.3 per cent on-year but slightly below Street’s estimates.
The company’s board also approved a final dividend of Rs 6 per share for the financial year ended March 2021.
On the operating front, the company’s earnings before interest, tax, depreciation and amortization rose 47 per cent year-on-year to Rs 249.2 crore, which also failed to surpass analysts’ expectations. The company’s operating margin in the quarter expanded 542 basis points on-year to 24.3 per cent.
The sharp jump in the bottomline and operating performance of the company was driven by base effect as the year-ago quarter was marred by the national lockdown in March 2020.
Same-store sales growth for Domino’s in the quarter stood at 11.8 per cent as against negative 3.4 per cent in the year-ago period. On a like-to-like basis, growth was at 15.1 per cent as against negative 2.3 per cent in the year-ago period.
“We returned to growth during the quarter, opened a large number of new stores, improved our operating margins and expanded our portfolio of brands,” said chief executive officer Pratik Pota in an earnings statement.
During the quarter, Domino’s opened a record 50 new outlets as compared to merely 13 in the year-ago quarter. It also closed four outlets in the quarter with the total restaurant count now at 1,360 as on March 31. Jubilant Food also added two new restaurants under its new brands Hong’s Kitchen and Ekdum!
Overall system sales recovered to 114 per cent of the pre-pandemic level in the March quarter, but fell to 87.7 per cent in May due to state-wide lockdowns seen across the country due to the second wave of Covid-19 infections.
However, delivery volumes stood at 155.8 per cent in May suggesting that online delivery sales remained the primary driver for the company during the second wave.
At 3:00 p.m., shares of Jubilant Foodworks were down 0.6 per cent at Rs 3,182 on the National Stock Exchange.
