Domino’s Pizza-maker Jubilant Foods gains as Street cheers QSR's expansion plans, 20-min delivery service

Domino’s Pizza maker Jubilant FoodWorks share price surged nearly 2.5 per cent each on NSE and BSE intraday to touch a day’s high level of Rs 533 per share during Wednesday’s session after the company announced its 20-minutes delivery service across 20 zones in 14 Indian cities along with an expansion plan.

Domino’s earlier pioneered 30-minute delivery and established itself as a market leader in the Quick Service Restaurant (QSR) sector.

Jubilant FoodWorks in an exchange filing said that it will enhance and optimize in-store process improvements, dynamic resource planning, technology upgradation, interventions for improved operational efficiencies, and expanding stores within the vicinity.

Similarly, the unparalleled 20-minute delivery announcement that underlines the company’s delivery prowess is a benchmark proposition revolutionizing the QSR sector, it said in the filing.

The company said that these steps help the brand optimize the overall timing of the entire process, ensuring the delivery of hotter, fresher, and tastier pizza in 20 minutes without compromising the food quality and the safety & well–being of its delivery riders.

According to Zee Business research, Jubilant FoodWorks is scheduled to open additional 1300 Domino's stores, taking the total number of stores to 3,000 – which could be seen as the company’s expansion.

Market analyst Ambareesh Baliga while speaking to Zee Business Managing Editor Anil Singhvi said that the opening of new stores and faster delivery could be seen as positive as same-store sales growth (SSSG) and new launches of the company have not worked well so far.

He added that the stock of this company may not see a downside amid expansion plans announcement, but with respect to the upside, "we need to wait for better earnings in the next 2-3 quarters".

Jubilant FoodWorks is India’s largest food service company and is part of the Jubilant Bhartia Group. Incorporated in 1995, the company holds the exclusive master franchise rights from Domino’s Pizza to develop and operate the Domino’s Pizza brand in India, Sri Lanka, Bangladesh and Nepal.