Nature of the Disclosure

This document is the transcript of the Q4FY26 and FY26 Earnings Conference Call for Jubilant FoodWorks Limited, held on May 20, 2026. The transcript was filed with the stock exchanges (BSE & NSE) on May 27, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The call was led by key management personnel including Chairman Mr. Shyam S. Bhartia, Co-Chairman Mr. Hari S. Bhartia, CEO & MD Mr. Sameer Khetarpal, and CFO Ms. Suman Hegde.

Key Quantitative Figures & Financial Performance

  • The company reported a Q4FY26 Same-Store Sales Growth (SSSG) of 0.2% year-on-year.
  • The 2-year CAGR for SSSG was approximately 6% in Q4, down from 9% in Q3.
  • Gross Margin improved sequentially to 75.5% from 74.5%.
  • The delivery mix stood at 76% of total sales.
  • The company has reduced its capital expenditure (capex) per new store by 20% over the last three years.

Strategic Updates & Management Commentary

  • SSSG Guidance: Management reaffirmed its long-term annual SSSG guidance of 5% to 7%. For Q1FY27, performance is stated to be better than Q4FY26.
  • Margin Outlook: The long-term goal of a 200 basis points (bps) margin improvement was reiterated. However, near-term margin pressures are acknowledged due to inflation.
  • Store Expansion: The plan to open 230 to 250 new stores in the current fiscal year (FY27) remains unchanged. Store formats are being optimized, with new delivery/carryout stores averaging 600-700 square feet, down from the 1,500-1,600 square feet formats approved four years ago.
  • Market Share: Management stated that Domino's has gained market share in the pizza category and the broader QSR space, according to a Nielsen panel tracking 50,000 customers.
  • Pricing Strategy: A key strategic move was reducing the minimum order value for delivery from ₹149 to ₹99 to gain market share and acquire new customers. This action contributed to a decline in the average order value (AOV).

Detailed Analysis of Headwinds & Initiatives

  • Inflation Impact: Management quantified several inflationary pressures:
  • Energy (LPG/PNG): A direct hit of 100 to 120 bps on margins. The company is mitigating this by converting ovens from LPG to electric and piped natural gas (PNG).
  • Labor: Headwinds from the new Labour Code (approx. 20 bps) and minimum wage increases across 11 states (another 20-30 bps). An increased delivery mix also adds to labor cost inflation.
  • Commodities: Inflation is noted, with potential for further pressure if logistics costs rise due to higher fuel prices.
  • Margin Levers: Initiatives to counter inflation and drive the 200 bps improvement include:
  • Gross margin expansion through premium product launches (Volcano, Sourdough, Big Big Pizza), reduced wastage, and calibrated price increases.
  • Improving logistics costs.
  • Renegotiating rentals due to the scale of expansion.
  • New Business Drag: The Popeyes, Hong's Kitchen, and Dunkin' businesses continue to be a drag on overall profitability, though the dilution is stated to be ahead of plan.

Q&A Highlights

  • Analysts sought clarity on the sequential deceleration in 2-year SSSG CAGR (9% in Q3 to 6% in Q4) and the divergence between weak dine-in/takeaway and stronger delivery growth.
  • Management clarified that no price increases were rolled back in April, attributing any perceived price changes to store-specific discount variations.
  • The sustainability of the Q4 gross margin expansion (75.5%) was questioned, given the 5% decline in realizations linked to the ₹99 minimum order value. Management indicated this was a nuanced point for offline discussion.
  • The impact of company-owned delivery fleet and LPG exposure on margins versus peers was discussed. Management highlighted a large part of the fleet is electric, providing an advantage.
  • A question regarding a system outage during a major sporting event was addressed; management clarified it was a minor app downtime with no notable sales impact.