- Popeyes emerges as second growth engine, CEO says
- Domino's dine-in recovery gains traction
- Jubilant confident of returning to 5%-7% same-store sales growth
Aug 13 (Reuters) - India's Jubilant FoodWorks said on Thursday its Popeyes fried chicken chain is emerging as a second growth engine, while efforts to revive dine-in traffic at Domino's Pizza are beginning to show early signs of success.
The operator of Domino's Pizza in India reported a 6% rise in first-quarter profit earlier in the day, helped by growth in its core business and continued store expansion.
Analysts had pointed to improving demand trends heading into the quarter, with Jefferies expecting same-store sales growth to improve sequentially.
Chief Executive Sameer Khetarpal said Popeyes' more than 40% like-for-like sales growth was being driven by product innovation, differentiated flavours and strong execution on store openings.
"Popeyes definitely has become a second growth engine," Khetarpal said on a post-earnings call, adding that the company sees significant room for further growth. Jubilant FoodWorks has said it aims to build Popeyes into a 10-billion-rupee brand over the next three to four years.
Khetarpal also said the company was increasingly directing capital towards expanding Domino's and Popeyes outlets after largely completing major supply-chain investments in recent years.
DOMINO'S TURNAROUND
The company is making progress in reviving dine-in and takeaway sales at Domino's, which have lagged the stronger delivery business, according to Khetarpal.
Jubilant has appointed dedicated leadership for the channel, upgraded dine-in-heavy stores and introduced store-specific promotions, including Wednesday offers aimed at driving footfall.
"The first goal is to stop the bleed," Khetarpal said, adding that the company had already seen growth in its Wednesday promotional programme.
Domino's India reported like-for-like sales growth of 2.5% in the June quarter, up from 0.2% in the preceding quarter but below the company's long-term annual target range of 5%-7%.
Khetarpal said delivery order volumes continued to grow despite recent price increases, adding that the company had focused on improving average order values while balancing profitability and demand.
Despite the slower-than-target growth, Khetarpal said the company remained confident of returning to the 5%-7% range over time, citing improving demand trends and a stronger start to the second quarter.
Reporting by Surbhi Misra in Bengaluru; Editing by Ronojoy Mazumdar
Source: Reuters