That said, the company reported decline of 18.5 per cent YoY in sales to Rs 810 crore with same store growth (SSS) decline of 20 per cent YoY. Like-for-Like (LFL) growth (refers to YoY sales growth for non-split restaurants opened before previous financial year) declined by 18.8 per cent. LFL growth (excluding restaurants) temporarily closed due to Covid-19 declined by 13.1 per cent, it said.
Within this, the Delivery and Takeaway channels did very well to grow by 5.8 per cent and 49.8 per cent YoY, respectively. The sales momentum continued in October with revenues recovering to 96.2 per cent of last year driven by Delivery growing by 16.3 per cent and Takeaway by 64.3 per cent.
The company has been the biggest success story in the Indian Quick Service Restaurant (QSR) industry in terms of growth with its delivery-based business model, analysts say. It offers the highest margin and best return-ratios amongst peers.
operating margins were significantly ahead of expectations, led by various factors like introduction of delivery charges from June quarter (Q1FY21), deflation in raw material costs, closure of least profitable stores, costs savings on employee costs, both at the store level and delivery level, lower energy costs, and cut on wastages. Of these, most are sustainable," Motilal Oswal Financial Services said in result update.
Post-Covid, the company's longer-term prospects appear even brighter with faster shift toward organized players in the Indian Food Service Industry. "Jubilant FoodWork's key domains delivery and takeaway gaining further traction, and increased usage of technology by customers, which facilitates growth of players like Jubilant (that are at the vanguard of this move). The introduction of delivery charges (without any negative feedback on ratings) and closure of 105 least profitable stores are factors driving structural margin improvement," the brokerage firm said.