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65% of Domino’s Pizza delivery orders are given online in Q1 FY19

Jubilant Foodworks, the company which operates Domino’s Pizza and Dunkin Donuts in India, reported that online orders contributed to around 65% of delivery sales for the quarter ended June 30, 2018 (Q1 FY19). This is up from a 51% online ordering share, recored in the same quarter last year. The company also said that most of the online orders, 83% to be exact, were placed through the mobile app, and has been growing steadily. In the same quarter last year, mobile app orders accounted for 69%. Note that the online delivery sales are exclusively for Domino’s Pizza.

The company also said that the number of downloads of its mobile app stood at 10.9 million at the end of Q1 FY19, as compared to 7.5 million in the same period last year. In the previous quarter, the company’s app downloads stood at 9.6 million. Currently, Jubilant Foodworks has a network of 1144 Domino’s Pizza restaurants across 268 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 year there were 55 Dunkin Donuts restaurants, and in Q1FY19 it is 37 across 10 cities.

Financials

Operating revenue: Rs 855 crore for Q1 FY19, up 26% YoY
EBITDA: Rs. 142 crore, up by 78.5% YoY
Profit after tax: Rs 74.7 crore, up by 213.2% YoY

Download: Press Release

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