Jubilant FoodWorks: Tech-Driven Expansion Fuels Optimism But Margin Concerns Remain

An ambitious, tech-centric store expansion strategy with can spur growth for Domino's operator Jubilant FoodWorks Ltd., analysts believe. However, muted margin recovery saw some analysts take a guarded view on the stock.

During its first-ever investor day, the pizza chain major underlined the target of running a 3,000-store network across 700 cities by March 2028. Management's emphasis on leveraging technology, from AI-powered store location identification to hyper-personalised app experiences, has heightened hopes for sustained growth in the future.

The profit guidance, however, was not to everyone's liking.

Here's what brokerages had to say about Jubilant FoodWorks' road ahead.

Jubilant FoodWorks management showcased at its first-ever investor day how it has capitalised on technology in their business from sourcing to supply chain.

The Domino's operator has been using AI to identify new store locations over first nine months of 2025. The company has also identified the next 1,000 high priority locations using tech to drive higher revenue per store, Citi said.

The strategic and tactical decisions have fuelled growth recovery, helping the company outpace peers, Morgan Stanley said. The brokerage expects this outperformance to continue amid management's single-minded focus on sustained revenue growth, while keeping an eye on profitable growth.

Jubilant FoodWorks plans to have a network of 3,000 stores in India by financial year ending March 2028. The localities for up to 1,000 of these potential stores are largely known, giving them a clear visibility.

This expansion comes from a combination of new cities and towns as well as densification in existing cities. This aggressive store expansion strategy is largely in line with the brokerage's expectations and is necessary to capture the growing demand for western fast food in India.

Jefferies remained excited about the growth agenda, which enhanced Domino's visibility from Coldplay concert to Kumbh Mela. The management believes this is just the start and that margins will follow growth.

While margin guidance may fall short of some expectations, the brokerage remained excited about the growth agenda, which enhanced Domino's visibility from Coldplay concert to Kumbh Mela. The management believes this is just the start and that margins will follow growth.

Domino’s India Ebitda margin was 14.6%, implying a 200bps to 270bps drag from other businesses, according to the brokerage. On profitability, management expects 200bps consolidated net profit margin expansion by 2028.

Macquarie expects the aggressive expansion plan to drive double-digit sales CAGR for Jubilant FoodWorks, but relatively muted guidance of 200 basis points of consolidated net profit margin expansion was not remarkable.

While the company is focused on reducing losses in emerging brands, debt costs related to the DP Eurasia acquisition are not expected to be extinguished in the near term, the brokerage noted. It believes that the drag from new stores and the need for investments in new commissaries is also driving this relatively guarded stance on margin.