Jubilant Foodworks

“And therefore, 0.5% in Q4FY26, at 2.5% in Q1FY27, and we believe Q2FY27 will be better than Q1FY27.”

“So yes, as per our guidance and whatever internal charts we had made or structural changes we were planning to make which would get us to that target, we are on course of it and we feel we are ahead in some areas on those.”

“Yes, as of now that is a fair assumption to make.”

“Of course, the profile of that capital, like, I want to reiterate, is now more indexed on investments behind new store expansion.”

“we have spoken about last quarter on how dine-in is an important metric for us, and hence there will be investment behind our existing stores to ensure we give the right customer experience out there.”

“And then the large third bucket is our technology investments that we will continue to put behind, because we do believe that's a key vector of differentiation versus the competition where the consumer also currently plays.”

“The supply chain investments are materially down from what it used to be a couple of years ago, which means that the overall capex as a percentage of turnover will continue to improve given we're maintaining the absolutes to where they were over the last couple of years.”

“And therefore, the capital allocation will go into Domino's stores and Popeyes stores, which is all revenue generating capex.”

“So these 3 structural tailwinds or structural factors are giving us 40%-45% growth rate.”

“Our first goal is to make sure that our average daily sales are materially higher than even where we are today.”

“Specifically, what we've done is we've built an organization or channel team which focuses on dining takeaway, under a very able leader and who can think about marketing, operations, and also business segment.”

“So we have a Best Deals Ever Wednesday. That proposition is only available on Wednesdays inside the store where there are food abundance and buy more, get more type of deals.”

“And early results, we've been able to, at least on Wednesday, we've been able to reverse the trend, and we see growth and then some other work is going on.”

“And when we looked at this and did the analysis, the solo occasions, which were less than INR250 ticket size, saw the maximum drop.”

“Just to add to that, the delivery order volume has grown, right? The delivery channel has not been impacted, in terms of order volumes from the price increases that have been taken.”

“But there is enough and more demand. Like I always said that there is more growth in delivery actually.”

“So, I don't see demand as an issue. In fact, indicators are it is only helping us.”

“Because we've seen a 12% increase in personnel costs on the standalone basis and about 15.6% on the consolidated basis year-over-year.”

“There are headwinds on account of minimum wages. There's headwind also on account of some of the new stores that we open from an absolute point of view.”

“Our productivity in terms of what we measure of orders per hour that person can do in the store has materially improved, which kind of brings down our cost within the store while the absolute can go up.”

“And while I see several opportunities on gross margin because the scale is still low at 90 stores, logistics cost and conversion cost and buying cost, whatever leverage you get from Domino's, I think still there are opportunities.”

“the margins will improve, your profit will grow ahead of your top line. So you will generate free cash flow.”

“I think over the last 2 years, we did see a dip in free cash flow in FY24-2025, but we did turn around end of FY25. FY26 came out strongly free cash flow positive.”

“And with the business growing at the rate we know it's growing at double digits, right, overall as JFL, your operating cash flows will go up even if I hold my margin steady”

“I think for us as a corporate, in a while, yes, we should have positive free cash flow.”

“We did not invest in Hongs at all. We, in a large category like coffee, have said that we will not play at all. And therefore let go of Dunkin.”

“On the headwind side, we have inflation in cheese, oil, because oil is mostly imported in India, LPG, and labour cost increases.”

“And of course, we had expected that maybe by second half of this year some of the West Asia crisis should kind of taper off and we should see them. But we're not seeing that happening, right?”

“almost 14 to 15 states in India have taken minimum wage hikes across the board.”

“So I think commodities are still in a flux. There might be more inflation coming our way, but we'll have to wait and watch on that now.”

“So that's the key metric for us, how much return am I generating on that capital that I put into the business.”

“And but the typically chicken average order values are higher than pizza. That's all I want to say.”