Jubilant FoodWorks Bets Big on Domino’s Expansion, but Margins Face Pressure

Jubilant FoodWorks (NSE: JUBLFOOD), the India-based operator of Domino’s Pizza, is ramping up its expansion plans, aiming to increase its store count to 3,000 by 2028. Analysts expect this aggressive rollout—coupled with a rebound in same-store sales—to drive strong revenue growth in 2025. However, rapid expansion could weigh on profitability.

According to Visible Alpha consensus, Jubilant’s standalone revenue is projected to rise +14% year-on-year in 2025, a sharp acceleration from the +4.8% growth recorded in 2024. Same-store sales growth, which declined -3.7% last year, is expected to recover to +4.4% in 2025. Analysts expect Jubilant to add 192 new Domino’s outlets in 2025, bringing the total to approximately 2,187. Beyond its flagship brand, the company also aims to expand its other restaurant chains, adding five Dunkin’ Donuts, 16 Hong’s Kitchen, and 37 Popeyes locations, pushing its overall restaurant count to 2,350.

Despite the strong revenue outlook, analysts remain cautious on margins. Gross margins are forecast to decline 225 basis points to 74.03% in 2025, as expansion-related costs along with inflationary headwinds on key ingredients, and higher promotional activity put pressure on profitability. Meanwhile, net income is projected to fall -8% year-on-year to ₹2.2 billion, extending a two-year decline.