Jubilant FoodWorks, the operator of Domino's Pizza and Dunkin' Donuts in India, goals to "radically change itself into a food-tech powerhouse" after reporting a sturdy healing from the impact of the second wave of the COVID-19 pandemic.

The company is undergoing a digital transformation with a watch on taking pictures the "likely high increase in deliveries and takeaways."

"We intend to use expertise on the heart of every thing we do and use it to fully transform and revamp our client experience, employee adventure, and to force operational efficiencies," Pratik Pota, CEO and wholetime director of Jubilant FoodWorks, talked about on an investor name after reporting its first-quarter outcomes.

Jubilant FoodWorks' digital focus comes as large investments pour into the food-tech phase. remaining week, restaurant aggregator and meals birth business Zomato concluded a $1.26 billion preliminary public offering, whereas rival Swiggy raised $1.25 billion from SoftBank and Prosus prior this week.

Flush with money, these corporations are expected to push deliveries aggressively and tap the altering purchaser behaviour in the wake of the pandemic.

Domino's Pizza already draws an enormous share of its birth orders via its app, unlike different short provider restaurants and eateries. It had sixty four million app downloads within the first quarter of FY22. based on the enterprise, the increase by itself app persevered to outpace earnings on aggregator platforms reminiscent of Swiggy and Zomato in Q1.

super app ambitions?

Jubilant FoodWorks is taking initiatives to faucet digital superior, correct from constructing a robust digital group and a data science crew to opening extra retailers focussed on deliveries and takeaways.

"we now have constructed a huge digital group and we're strengthening it even extra, both in product and consumer journey and in technology and engineering. we're additionally building a strong digital facts science team," Pota pointed out. "We also intend to invest in growing our computer gaining knowledge of and synthetic intelligence capabilities."

The enterprise plans to open one hundred fifty-a hundred seventy five outlets in this fiscal yr, a majority of which may be outfitted handiest for deliveries and takeaways.

"we will open a couple of full-provider stores in small cities," mentioned Pota.

lots of the new outlets can be for Domino's Pizza. despite the fact, it's going to also scale up the online presence of its other manufacturers. in response to the company, it is going to open shared outlets between Dunkin' Donuts, Ekdum! and Hong's Kitchen – concentrated on deliveries.

Dunkin' Donuts, which traditionally has been heavy on eating, will now tap deliveries actively.

The company has also indicated that while it may be too early, it could look at launching a super app combining its diverse brands.

part over competition

Jubilant FoodWorks is unfazed by the large investments raised by way of Zomato and Swiggy.

"We went through intense competitive activity in 2018-2019 with aggregators resorting to aggressive discounting to grow their measurement and orders. regardless of that aggressive competitive context for both years, JFL emerged superior, with a stronger market share for Domino's," pointed out Pota.

based on Pota, such investments will assist extend the class.

Analysts, too, noted the company has an talents over food-tech gamers.

"These welcome initiatives are strengthening Jubilant FoodWorks' right-to-win in a rapidly increasing QSR market – wherein the put up-pandemic medium-to-long-time period opportunity is asking greatly sophisticated to pre-pandemic levels," Motilal Oswal monetary services noted in a note.

based on the brokerage, the enterprise's delivery and technology moat supply it a sharper aspect over QSR friends and aggregators.

"it is already the most useful on sales per sq. feet. basis, resulting in finest-of-breed profitability as neatly as the foremost balance sheet metrics among peers," it added.

Motilal Oswal upgraded its rating of the company's inventory to a 'buy' with a target rate of Rs three,630.

recovery on target

Jubilant FoodWorks stated a net income of Rs 63 crore in the first quarter, beating analyst expectations, compared with a internet loss of Rs seventy four crore a yr earlier. revenue from operations more than doubled to Rs 879 crore from Rs 388 crore a year ago.

The company had stated a profit of Rs seventy one.48 crore and income of Rs 949 crore in the first quarter of FY20, earlier than the COVID-19 outbreak, in line with its BSE filing.

The increase in deliveries during the second wave of the pandemic helped offset the decline in dine-in. Jubilant FoodWorks' beginning channel grew 124 p.c in the quarter ended June 2021.

"The stock is trading at wealthy valuations of 64x FY23 and 51x FY24 income but is establishing into a solid 2-3-year boom story," yes Securities spoke of in a note. "We predict the wealthy valuations to preserve given increasing aggression on footprint enlargement and technology advancement, numerous levers to offer protection to margins despite competition and robust lengthy-term growth capabilities with entry into dissimilar new manufacturers and geographies."

The Jubilant FoodWorks share cost hit a 52-week high of Rs 3,449.90 on the back of its strong first-quarter effects on July 22.