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63% of Domino’s Pizza delivery orders are given online

Jubilant Foodworks, the company which operates Domino’s Pizza and Dunkin Donuts in India, reported that online orders contributed around 63% of delivery sales for the quarter ended March 31, 2018 (Q4 FY18). This is up from a 23% online ordering share in the same quarter last year. The company added that most of the orders (78%) of the online orders were placed through the mobile app, and has been growing steadily. In the same quarter last year, mobile app orders accounted for 68%. Note that the online delivery sales are exclusively for Domino’s Pizza.T
he company also mentioned that the number of downloads of its mobile app stood at 6.4 million at the end of Q4 FY18, as compared to 9.6 million in the same period last year. In the previous quarter, the company’s app downloads stood at 9 million. Currently, Jubilant Foodworks has a network of 1134 Domino’s Pizza restaurants across 266 Indian cities and towns.
The company is facing trouble running Dunkin Donuts, mostly because it’s a low margin business. It makes more money by selling combo packs i.e. doughnuts coupled with Coffee/Burger, etc, but not all walk-in customers opt for a combo. This has subsequently led to a number of shutdowns on the Dunkin Donuts segment: last quarter in the same there were 63 Dunkin Donuts restaurants, and in Q4 it is 37 across 10 cities. Company’s CEO Pratik Pota said that the company halved Dunkin’ Donuts losses in line with its focus on Donuts and Beverages and shutting of unprofitable stores. “Going forward, we will remain focused on the strategic pillars of Product Quality and Innovation, Value-for-money, Seamless Customer Experience and Digital Technology and are confident that these will help us deliver robust growth,” he added.

Financials

Operating revenue: Rs 780 crore for Q4 FY18, up 27.3% YoY
EBITDA: Rs. 12.7 crore, up by 111.1% YoY
Profit after tax: Rs 68.1 crore, up by 913% YoY

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