The pizza powerhouse: Can Jubilant FoodWorks deliver another 35x growth story?

Aggressive expansion: From 300 outlets in 2010 to over 1,800 stores in 2024, Jubilant has grown at a CAGR of 16% in store count.

Regional diversification: While 55% of Domino’s stores are in metro cities, Tier-2 and Tier-3 cities account for the majority of new openings.

Why it worked: In smaller towns, Domino’s is often the first organised QSR chain, filling a gap in the market and building brand loyalty early.

3. Menu innovation: Paneer on pizza? Yes, please!

Understanding India’s diverse tastes has been key to Jubilant’s success.

Localised Offerings: Domino’s introduced Paneer Tikka Pizza, Chicken Keema Do Pyaza, and Tandoori Pizza, which now account for 30% of menu sales.

Price segmentation: Offering products at various price points — from Rs 49 garlic breadsticks to premium pizzas — ensured accessibility across income groups.

Seasonal launches: Limited-time offers like Cheesy Bites and Mexican Fiesta Pizzas kept the menu exciting and encouraged higher ticket sizes.

4. Value over volume: The Rs99 masterstroke

The introduction of the Everyday Value Offer (Rs99 per pizza) was a game-changer.

Driving volume: The pricing strategy ensured that Domino’s remained affordable for middle-class families, students, and office-goers.

Larger ticket sizes: Combining discounts with add-ons like desserts and drinks boosted average order value (AOV).

What it means: Jubilant prioritised customer stickiness through value pricing, leading to consistent growth even during economic downturns.

5. Digital First: A tech-enabled growth strategy

Domino’s India was one of the first QSR chains to heavily invest in digital transformation.

Online orders dominate: Online sales now contribute to ~70% of revenues, compared to just 15% in 2015.

Delivery revenue contribution. (Source: Jubilant FoodWorks Earnings Report)

User base: The Domino’s app has crossed 40 million downloads in a year in 2024, making it one of the most popular food apps in India.

App installs and MAUs. (Source: Jubilant FoodWorks Earnings Report)

Same-Store Sales Growth: The secret sauce behind Jubilant’s valuation

In the world of QSRs, few metrics carry as much weight as Same-Store Sales Growth (SSSG). It’s the ultimate measure of whether a company’s existing stores are thriving — or just coasting along.

For Jubilant FoodWorks, SSSG has been the unsung hero behind its incredible growth story and sky-high valuation.

Think of it this way: opening new outlets is flashy, but what really matters is how much more each existing store can deliver year after year. That’s where Jubilant has excelled.

Even as it aggressively expanded its footprint, it consistently made sure its current stores were more productive, ensuring that growth wasn’t just about adding outlets but also about squeezing more value from the ones already running.

Before the pandemic, Jubilant’s SSSG hovered comfortably around 7-9%. In fact pre-2015, the SSSG was in double digits.

Not earth-shattering, but solid and consistent enough to show that Domino’s stores weren’t just surviving — they were thriving.

SSSG from FY08 to FY19. (Source: Ambit Research)

Then came the pandemic, and everything changed. Foot traffic disappeared, dine-ins collapsed, and many in the food industry faltered. Jubilant didn’t.

Instead, it leaned into delivery, a space it had been quietly dominating for years. While competitors scrambled to build delivery infrastructure, Domino’s already had the playbook.

The result? By 2022-23, SSSG had rebounded to 7-9%, fueled by a surge in online orders. It wasn’t just a recovery — it was proof of how adaptable Jubilant’s model could be.

Why does this matter for valuation? Well, in the QSR business, SSSG is more than just a performance metric — it’s a direct reflection of efficiency. When SSSG goes up, costs stay the same, but revenues climb. It’s like turning up the volume on a stereo without paying for bigger speakers.

For Jubilant, this operating leverage has been a game-changer, helping it maintain industry-leading EBITDA margins of over 25%.

Investors notice these things.

Strong SSSG signals that the company isn’t just adding new stores to grow — it’s getting more out of every square foot of its existing outlets. That kind of efficiency is rare and highly valued. It’s one reason Jubilant commands a price-to-earnings multiple north of 100x. To many, that number seems outrageous. But when you understand the economics — how each store becomes more valuable over time — it starts to make sense.

Beyond just boosting revenue, SSSG offers something even more valuable: predictability. If existing stores are growing consistently, it’s easier to project how new ones will perform. This is critical for a company like Jubilant, which adds hundreds of new outlets every year. Strong SSSG gives investors confidence that these new stores won’t just contribute to revenue but will quickly become profit centers.

Slice, sizzle, scale: Is Jubilant FoodWorks delivering the next big bite?

Jubilant FoodWorks isn’t just a Domino’s story anymore. While the brand has been its backbone, the company is actively cooking up new opportunities that could fuel its next wave of growth. From new brands to new markets, there’s plenty on the menu. But does that justify its premium valuation?

Let’s take a closer look.

Domino’s: The core that still delivers

Let’s start with the bread and butter — or rather, the crust and cheese — of Jubilant FoodWorks: Domino’s Pizza.

After years of dominating India’s organised pizza market with a staggering 70% share, Domino’s remains the company’s cash cow. But here’s the nuance: while mature Tier-1 markets like Delhi and Mumbai have slowed, growth in Tier-2 and Tier-3 cities is accelerating.

Store additions and city coverage. (Source: Jubilant FoodWorks Earnings Report)

Domino’s isn’t just a pizza; in many small towns, it’s a statement — a symbol of affordable indulgence for India’s growing middle class. This deep penetration, combined with a 30-minute delivery promise, still makes Domino’s the go-to QSR for both affordability and convenience.

Valuation perspective? Domino’s core business ensures predictable cash flows, which is gold for any QSR stock. Its premium pricing power, coupled with high customer retention, forces PE multiple to remain high.

Popeyes: Fried chicken meets billion-dollar potential

Now, let’s talk about Popeyes, Jubilant’s ambitious foray into the fried chicken market.

Globally, Popeyes is a heavyweight in its category, and in India, it’s tapping into a $1.5 billion chicken QSR market, growing at 20% CAGR.

The Indian chicken market has far fewer organised players compared to pizza, giving Popeyes a clear runway to scale. What’s more, fried chicken appeals to both the urban millennial consumer and the price-sensitive Tier-2 audience.

With its early success in metro cities and Jubilant’s expertise in delivery-first operations, Popeyes could easily grow to contribute 15-20% of revenue in the next 5-7 years.

For valuation, Popeyes’ success could add a new layer to Jubilant’s premium. Think of it this way: if Domino’s is the steady compounding engine, Popeyes is the hyper-growth driver investors dream about. A strong Popeyes rollout could even expand Jubilant’s valuation multiple, pricing in its untapped potential.

New stores: Building for the future

Jubilant is in expansion overdrive, adding 200-250 stores annually, with a focus on capturing Tier-2 and Tier-3 markets. But this isn’t just blind expansion. Jubilant’s new stores are breaking even faster than before — most within 12-18 months — thanks to improved operational efficiency and existing demand.

Future-proofing the valuation? As these new stores mature and start contributing to SSSG, Jubilant’s revenue base will grow without significant incremental costs, which will directly bolster EBITDA margins. That’s the kind of operational leverage that justifies high multiples.

Global markets: Domino’s beyond borders

While India remains Jubilant’s breadbasket, its international operations in Turkey, Sri Lanka, Bangladesh, Azerbaijan, and Georgia are gaining traction. These markets are less saturated and offer higher growth rates due to rising urbanisation and changing food habits.

Turkey, for instance, is a key market where Domino’s has outperformed local competitors, and Bangladesh’s growing middle class is driving demand for affordable, branded QSRs. Together, international markets already contribute 12-15% of revenue, and this share could climb to 20-25% within a decade.

Why does this matter for valuation? International diversification reduces dependence on India, de-risks the business, and adds an exciting growth story to Jubilant’s profile. That global exposure could support further expansion of its PE multiple, aligning with global QSR peers like McDonald’s or Yum Brands.

In-house brands: The quiet growth engine

Jubilant isn’t just betting on global franchises. Its in-house brands, like Hong’s Kitchen (Chinese cuisine) and Ekdum! (biryani), are strategic experiments aimed at diversifying revenue streams. While still small, these brands leverage Jubilant’s existing supply chain and delivery infrastructure, keeping setup costs low.

The bigger opportunity here is margin expansion. Unlike franchise models where Jubilant shares royalties, in-house brands are fully owned, meaning every rupee earned goes straight to its bottom line. If one or more of these brands scales meaningfully, it could significantly improve Jubilant’s EBITDA profile and offer another avenue for valuation growth.

Valuation multiples: Pizza now, more layers later?

At a PE multiple north of 100x, Jubilant isn’t cheap. But here’s the thing — premium valuations are reserved for companies that offer both stability and growth, and Jubilant checks both boxes.

• Domino’s provides stability, with predictable cash flows and steady SSSG.
• Popeyes adds hyper-growth potential, giving investors exposure to a massive untapped market.
• New store additions ensure scale without diluting margins.
• International markets diversify risks and open new revenue streams.
• In-house brands represent optionality — if even one succeeds, it’s a bonus.

Looking ahead, Jubilant could realistically maintain its high multiple as long as it executes on Popeyes and continues expanding its core business. If these growth levers fire together, the company could move closer to a reasonable PE multiples ranging between 50-70x and that may be considered as a moderate one.

The final slice

Jubilant isn’t just a pizza company anymore — it’s a diversified QSR powerhouse. With a steady core business, high-growth bets like Popeyes, and new opportunities in global markets and in-house brands, it’s layering its growth story in ways that justify its premium valuation.

The key question for investors is this: how much more growth can be priced in without stretching the valuation too far? If Jubilant continues to deliver on its promises, it might just prove that its multiple isn’t overpriced — it’s underappreciated.

Parth Parikh has over a decade of experience in finance and research, and he currently heads the growth and content vertical at Finsire. He has a keen interest in Indian and global stocks and holds an FRM Charter along with an MBA in Finance from Narsee Monjee Institute of Management Studies. Previously, he has held research positions at various companies.

Disclosure: The writer and his dependents do not hold the stocks discussed in this article.

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