Jubilant FoodWorks Limited: history, ownership, mission, how it works & makes money

A Brief History of Jubilant FoodWorks Limited

Founded in 1995, Jubilant FoodWorks Limited (JFL) is a leading food service company in India, recognized mainly for being the master franchisee of Domino's Pizza in India, Sri Lanka, Nepal, and Bangladesh. The company was originally established as a subsidiary of Jubilant Enpro Private Limited and has since grown into the largest pizza chain in India. Over the years, JFL has expanded its offerings to include a variety of cuisines and has incorporated brands like Dunkin' Donuts.

In 2010, Jubilant FoodWorks made a significant move by announcing the acquisition of the Dunkin' Donuts franchise, further diversifying its portfolio. The company opened its first Dunkin' Donuts outlet in 2013, marking a pivotal moment in its strategy to penetrate the coffee and baked goods segment.

As of March 2023, Jubilant FoodWorks operates over 1,400 Domino's stores in India and 50+ Dunkin' outlets across various locations. The company reported a consolidated revenue of ₹1,200 crores in Q4 FY2022-23, representing a growth of 10% year-over-year.

Jubilant FoodWorks went public in 2010 and was listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The IPO was priced at ₹145 per share, and within a few years, the stock saw significant appreciation, reflecting the company’s strong operational performance and market positioning.

In FY2021-22, the company reported a net profit of ₹500 crores, translating to a net profit margin of approximately 9%. The Return on Equity (ROE) stood at 19%, indicative of robust profitability metrics.

Below is a table summarizing the key financial metrics of Jubilant FoodWorks for the past five years:

Jubilant FoodWorks is noted for its innovative marketing strategies and has the largest loyalty program in the restaurant sector in India, which significantly contributes to its customer retention and engagement.

In an effort to adapt to changing consumer preferences, the company has invested in digital initiatives, enhancing the online ordering experience. As of 2023, online orders accounted for approximately 65% of total sales.

In summary, Jubilant FoodWorks Limited continues to be a dominant player in the Indian food service industry, driven by strategic expansions, financial performance, and a strong focus on customer engagement and digital transformation.

A Who Owns Jubilant FoodWorks Limited

Jubilant FoodWorks Limited, a major player in the Indian food service industry, operates as the master franchise for Domino's Pizza in India. The company is publicly traded on the National Stock Exchange of India (NSE) and BSE. As of the latest reports, Jubilant FoodWorks has a diversified ownership structure, including institutional investors, retail shareholders, and significant corporate stakeholders.

As of June 2023, the ownership breakdown is as follows:

The major shareholder among the promoters is Jubilant Bhartia Group, which holds a substantial stake in the company. Their focus is on expanding the brand through acquisitions and menu diversification. As of the financial year 2022-2023, the company reported a significant growth in revenue, amounting to ₹1,680 crores, reflecting an increase of 23.5% year-on-year.

In terms of institutional ownership, the presence of foreign institutional investors reflects confidence in the company’s growth trajectory. Notable FIIs include names such as Vanguard Group and BlackRock, which are known for their long-term investment strategies. The shareholding pattern indicates a balanced mix of domestic and foreign investments, affirming market confidence.

Moreover, Jubilant FoodWorks has actively worked on enhancing shareholder value through various measures. The company declared a dividend of ₹10 per share in its latest fiscal year, showcasing its commitment to returning profits to shareholders.

In a recent earnings call, the management highlighted strategic initiatives focusing on enhancing customer experience and expanding delivery services, which have positioned them well amidst growing competition in the QSR (Quick Service Restaurant) sector. As of Q2 fiscal 2023, the EBITDA margin stood at 24.2%, indicating robust operational efficiency.

Also, the stock performance of Jubilant FoodWorks has been notably strong, with shares trading at approximately ₹800 as of October 2023. This reflects an increase of 30% from the previous year, underscoring market optimism related to the company's operational strategies and growth outlook.

The food service sector is witnessing a paradigm shift post-pandemic, with consumers increasingly favoring delivery and takeaway services. Jubilant FoodWorks is well-positioned to capitalize on this trend, with its strong branding and extensive delivery network.

Jubilant FoodWorks Limited Mission Statement

Jubilant FoodWorks Limited, a prominent player in the Indian food service industry, is primarily known for its franchise operations with Domino's Pizza and Dunkin' Donuts. The company's mission statement emphasizes a commitment to delivering exceptional food experiences, fostering customer loyalty, and ensuring a high standard of quality and service.

The mission statement can be summarized as follows:

• Focus on high-quality food and excellent customer experience.
• Innovate in product offerings to meet consumer demands.
• Commit to operational excellence and continuous improvement.
• Promote sustainability and social responsibility.

The company operates a network of over 1,400 outlets across India as of September 2023, contributing significantly to its market position. The growth trajectory of Jubilant FoodWorks reflects its proactive approach to scaling operations and expanding its menu offerings.

In FY 2023, Jubilant FoodWorks reported a total revenue of INR 4,231 crore, with a net profit of INR 580 crore. The same-store sales growth was notably robust at 12.0%, indicating effective local strategies and brand loyalty.

Moreover, the company is leveraging technology and digital platforms to enhance customer engagement through online ordering systems and app-based services. As of June 2023, the mobile app had garnered over 10 million downloads, reflecting its growing digital footprint.

Jubilant FoodWorks is also focused on sustainability, pledging to achieve a 100% reduction in single-use plastics across its outlets by 2025. This commitment is aligned with global sustainability trends and consumer preferences for environmentally responsible practices.

The future strategies include expanding the menu to incorporate more health-oriented options and experimenting with different cuisines to cater to diverse customer preferences. The company is additionally gearing up for international expansion, with plans to enter new markets outside India, thus broadening its consumer base and enhancing revenue streams.

How Jubilant FoodWorks Limited Works

Jubilant FoodWorks Limited operates as a major player in the food and beverage industry in India, primarily known for its franchises of Domino's Pizza and Dunkin' Donuts. As of the latest reports, the company holds the exclusive rights to operate these brands in India, Sri Lanka, Nepal, and Bangladesh.

As of September 2023, Jubilant FoodWorks reported a total of 1,553 Domino's Pizza outlets across its operational markets, showcasing a robust expansion strategy. The rapid growth can be attributed to factors like menu innovation, technology-driven delivery, and effective marketing campaigns.

The company's financial performance is significant. For the fiscal year ending March 2023, Jubilant FoodWorks posted a revenue of INR 5,200 Crores, representing a growth of approximately 12.5% year-over-year. In the same period, the net profit reached INR 561 Crores, which marks an increase of around 18% compared to the previous fiscal year.

Jubilant FoodWorks utilizes a franchise model, which helps it maintain lower capital expenditures while allowing for faster scaling. The company's average sales per outlet, particularly for Domino's Pizza, is reported to be around INR 2.5 Crores annually. This metric highlights the brand's strong market presence and consumer demand.

In its operational strategy, food delivery has become a cornerstone. The company has integrated advanced technology into their operations to facilitate efficient order processing. As of September 2023, it was reported that over 80% of orders are placed through digital platforms, including mobile applications and websites.

Jubilant FoodWorks also focuses heavily on menu diversification. The introduction of localized products and healthier options has resonated well with consumers. Their successful marketing initiatives have not only attracted new customers but have also retained existing ones. The emphasis on quality control and customer feedback loops ensures that product offerings meet market expectations.

In terms of supply chain management, the company has invested in establishing a robust logistics framework. This includes state-of-the-art distribution centers and cold storage facilities designed to maintain product quality. Their commitment to sustainability is evident in efforts to minimize food waste and optimize resource use.

As of Q2 2023, the company reported a significant increase in overall customer footfall and online traffic, with an increase of around 15% in customer visits compared to the same quarter in the previous year. This positive trend reflects the brand's adaptability and resilience in a competitive market.

Looking ahead, Jubilant FoodWorks plans to continue expanding its footprint, both through organic growth and strategic partnerships. They recently announced intentions to open an additional 300 outlets in the next fiscal year, reinforcing their commitment to market dominance and customer accessibility.

How Jubilant FoodWorks Limited Makes Money

Jubilant FoodWorks Limited is one of the leading food service companies in India, primarily known for its franchisee operations of Domino's Pizza and Dunkin' Donuts. As of FY2023, the company operates over 1,600 Domino's outlets across more than 300 cities in India. The revenue model primarily revolves around product sales, delivery services, and promotional offers. Below are the key components of how the company generates its revenue.

1. Revenue Streams

• Core Product Sales: The major revenue comes from the sale of pizzas and other food items. In FY2023, Jubilant FoodWorks reported a revenue of ₹1,157 crores from the sale of pizzas alone.
• Delivery Services: The company's delivery services account for approximately 80% of total sales, significantly enhancing revenue through convenience for customers.
• Dine-in Services: Although delivery dominates, dine-in service contributes 15% to the overall sales due to the growing number of standalone restaurants.
• Merchandising & Promotions: The company engages in various promotional campaigns and sells branded merchandise, contributing to a smaller yet significant portion of revenue.

2. Financial Performance

In Q2 FY2024, Jubilant FoodWorks reported a total revenue of ₹1,074 crores, showcasing a growth of 18% year-on-year. The net profit for the same period was reported at ₹148 crores, resulting in a net profit margin of 13%.

3. Market Analysis

The Indian organized food service industry is expected to reach ₹5.52 trillion by 2027, growing at a CAGR of 10%. Jubilant FoodWorks is well-positioned to capitalize on this growth due to its established brand presence and innovative marketing strategies. The company's market share in the organized pizza segment is approximately 71%.

4. Digital and Technological Integration

• Online Ordering: With the rise of digital orders, Jubilant FoodWorks has enhanced its online platform, which now generates over 60% of its total orders.
• Mobile App Usage: The company reported that over 5 million users engage with its mobile application monthly, boosting customer retention and sales.
• Data Analytics: The implementation of data analytics to optimize delivery routes and manage inventory has led to a reduction in costs by approximately 10%.

5. Expansion Strategy

Jubilant FoodWorks is focusing on expanding its footprint, with plans to open over 200 new outlets in the next two years. The company is also exploring international markets, particularly in Bangladesh and Nepal, to further increase revenue streams.

6. Competitive Landscape

Key competitors include Pizza Hut, Dominos, and local eateries. In FY2023, Jubilant FoodWorks retained a competitive edge with a customer loyalty program that resulted in a repeat purchase rate of 65%. This customer-centric approach enhances brand loyalty and repeat sales.

The strategic pricing, continuous product innovation, and effective marketing campaigns are fundamental in sustaining its revenue growth. For example, the introduction of new menu items has demonstrated a positive response, increasing footfall by approximately 20%.