Q1 2027 Jubilant Foodworks Ltd Earnings Call Transcript
Key Points
- Popeyes has become a strong second growth engine with 45% LFL growth, driven by superior product, brand building, and strong store execution.
- Management is confident in achieving 5-7% LFL growth for Domino's, with Q2 expected to be better than Q1.
- Gross margins remained healthy at 75.5% despite cost headwinds, supported by pricing power and supply chain efficiencies.
- The company is on track to deliver its 200 basis points EBITDA margin expansion target, with emerging brands ahead of plan.
- Free cash flow has turned positive and is expected to improve further as CapEx remains within the INR750-900 crore range while operating cash flows grow.
- Domino's LFL growth was only 2.5% in Q1, impacted by a high base and cost headwinds from LPG, labor, and commodity inflation.
- Dine-in and takeaway channel continues to face headwinds, with solo occasions under INR250 seeing the maximum drop.
- The reduction in minimum order value to INR99 has increased delivery costs per order, creating an EBITDA headwind.
- Commodity costs, including cheese, oil, and chicken, remain volatile and may lead to further inflation.
- Popeyes is still not EBITDA profitable, with high marketing costs and a need to scale to achieve profitability.
Ladies and gentlemen, good day and welcome to the Q1 FY 2027 earnings conference call hosted by Jubilant FoodWorks Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Apaar, Head of Investor Relations at Jubilant FoodWorks. Thank you, and over to you, Mr. Apaar.
Thank you so much, Sagar. Welcome to Jubilant FoodWorks quarter one FY 2027 earnings call for investors and analysts. We are joined today by senior members of the management team, including our chairman, Mr. Shyam S. Bhartia; our CEO and MD, Mr. Sameer Khetarpal; and our CFO, Ms. Suman Hegde.
Please note that this earnings call is scheduled for a duration of 45 minutes, and we will commence directly with the Q&A session. Along with the Q1 financial results, we have released a letter to our shareholders in which we have shared our outlook and have already answered certain pertinent questions about the performance. Hence, the
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