Shares of Jubilant FoodWorks tumbled about 10% after the company reported subdued same-store sales growth for the fourth quarter, disappointing investors despite strong revenue expansion.
The Domino’s Pizza operator posted like-for-like sales growth of just around 0.2% in Q4, signalling near-stagnant demand at existing outlets. The figure fell short of market expectations and raised concerns about the pace of recovery in the quick-service restaurant (QSR) segment.
Analysts said the weak performance reflects pressure on consumer spending as well as operational challenges. While new store additions and expansion helped drive overall revenue growth, core demand at established outlets remained soft. This mismatch between revenue growth and same-store performance triggered a negative reaction in the stock market.
A key factor impacting the quarter was disruption in the supply of commercial LPG, which is essential for daily restaurant operations. The company indicated that these supply issues affected store functioning and led to lost sales opportunities during the period.
Despite these challenges, Jubilant FoodWorks reported a strong year-on-year increase in revenue, supported by store expansion and improved delivery channels. However, investors focused more on the weak underlying demand trend reflected in same-store sales, which is considered a key indicator of business health.
The broader QSR sector has been facing multiple headwinds, including rising input costs, competitive pricing pressure, and uneven demand recovery. Industry players have been relying on promotions and value offerings to attract customers, which has also impacted margins.
Following the update, the company’s shares fell sharply, reflecting concerns over growth visibility and profitability. Market participants remain cautious about near-term performance, especially if operational disruptions continue or consumer demand stays weak.