Jubilant FoodWorks Shares Hit Two-Year Low After Weak Sales Growth
Shares of Jubilant FoodWorks, the operator of Domino’s Pizza in India, fell sharply on Tuesday, dropping to their lowest level since March 2024 after the company reported disappointing quarterly sales growth. The stock declined as much as 8.7% to ₹421, significantly underperforming the broader Nifty 50 index, which slipped slightly during the session. Analysts flagged the weak performance as a sign of slowing business momentum and potential pressure on margins.
The company reported same-store sales growth of just 0.2% for its Domino’s India outlets in the January–March quarter, a steep decline from the 5% growth recorded in the previous quarter. Brokerage firms including Morgan Stanley described the results as a major miss, while Goldman Sachs warned that softer demand could weigh on profitability going forward. Analysts also noted that a cooking gas shortage linked to geopolitical tensions may have disrupted operations at some outlets during the quarter.
The weak performance comes amid broader challenges for India’s fast-food sector, where companies face rising costs and intensifying competition. Rival operators Devyani International and Sapphire Foods have already reported losses in recent quarters. Despite slower store-level growth, Jubilant FoodWorks’ consolidated revenue rose 19.1% year-on-year to ₹25.1 billion, compared with ₹21 billion in the same period last year.
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