Shares of Domino’s India operator Jubilant Foodworks slumped to their lowest since March
2024 on Tuesday, after weaksales growth stoked fears of slowing
momentum and margin strain.
Shares fell as much as 8.7% to ₹421. Benchmark Nifty
50 index was down 0.2%.
The company posted 0.2% same-store sales growth on Monday for
its Domino’s India stores in the fourth quarter, down from the
5% growth it had recorded last quarter.
Analysts at Morgan Stanley called it a “big miss”, while Goldman
Sachs said it will result in weak margins for the company.
Antique Stock Broking said that the cooking gas shortage in the
country brought on by the Iran war may have impacted select
outlets of the company during the January-Marchquarter, hurting
its same-store sales growth.
This comes at a time when fast-food chains in India are
struggling amid intense competition and rising costs. Peers
Devyani International and Sapphire Foods
both reported losses for the third quarter.
Jubilant’s fourth-quarter consolidated revenue from
operations rose 19.1% year-on-year to ₹2,510 crore
($270.04 million), compared to ₹2,100 crore a year ago.