Jubilant FoodWorks' delivery growth lifts Domino's India; Popeyes emerges as second growth engine

Jubilant FoodWorks, which operates Domino's Pizza and Popeyes in India, reported strong growth in its delivery business in the September quarter, while Popeyes continued to gain traction, emerging as a second growth engine for the quick-service restaurant (QSR) operator.

Domino's India reported a 9.2% year-on-year increase in revenue in Q2 FY27, supported by 6.3% growth in orders. Revenue from its delivery channel grew 11.3% during the quarter, with delivery accounting for 75.8% of the brand's total revenue. The company's like-for-like (LFL) growth improved to 4.1% from 2.5% in the June quarter and 0.2% in the March quarter.

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The QSR giant reported sustained momentum in delivery, along with early signs of recovery in its dine-in and takeaway (DITA) business, supported the improvement in Domino's India performance. Late-night consumption also emerged as a strong-performing segment, with more than 90% of the network now offering services until 3 am.

Over the past six to nine months, the company has expanded its late-night offerings to tap into additional consumption occasions and drive incremental orders. Product launches across the Maxxx range, Double Cheese Burst, cold coffee and mousse have also helped improve customer engagement and average ticket sizes.

The company is also working to revive its dine-in and takeaway business, which recorded 2.4% revenue growth during the quarter. Infrastructure upgrades have been completed in around 20% of the identified stores, while its My Meal at Rs 119 proposition has been rolled out nationally to drive footfalls and improve ticket sizes.

Meanwhile, Popeyes is gaining scale and emerging as a meaningful second growth engine for Jubilant FoodWorks. The fried chicken chain reported 122% year-on-year revenue growth in Q2 FY27, with like-for-like growth of 53%, marking its fourth consecutive quarter of growth above 40%.

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Popeyes added 11 stores during the quarter, taking its presence to 25 cities. Its system-level average daily sales are now broadly comparable with established competitors in most markets, according to the company.

The brand's growth has also been accompanied by an improvement in profitability. Popeyes' gross margin expanded by 150 basis points year-on-year during the quarter. Jubilant FoodWorks is targeting the development of Popeyes into a Rs 1,000 crore brand over the next three to four years.

However, the company is prioritising store-level returns and unit economics over an aggressive expansion strategy. While customer experience, gross margins and store productivity are approaching or matching competitive benchmarks, brand-level profitability is not yet fully established.

Jubilant FoodWorks said it was following the expansion strategy adopted for Domino's, focusing on entering the right micro-markets, maintaining attractive store-level economics and ensuring new outlets meet return thresholds before accelerating expansion.

At the consolidated level, Jubilant FoodWorks reported an 11.8% year-on-year increase in revenue from operations to Rs 2,608 crore in Q2 FY27. EBITDA rose 7.3% to Rs 513 crore. Standalone revenue grew 11.5% to Rs 1,885 crore, while EBITDA increased 12.4% to Rs 372 crore.

The company added 108 stores across its businesses during the quarter, taking its global network to 3,820 outlets.

The Domino's India franchisee is managing elevated input costs through procurement efficiencies, calibrated pricing, menu-mix optimisation and tighter cost controls. Its standalone gross margin expanded 110 basis points year-on-year to 75.5%, while standalone EBITDA margin improved 16 basis points to 19.8%.

The company is prioritising sustained growth at Domino's India, scaling Popeyes while improving unit economics, developing its international businesses and embedding technology across operations.