Jubilant FoodWorks Targets 15% Growth as India’s Food Services Market Offers Long Runway

India’s food services market remains largely untapped, and that’s exactly where Jubilant FoodWorks sees its next wave of growth. With nearly two-thirds of the $60 billion industry still unorganised, the Domino’s India operator is positioning itself to capture rising demand through steady same-store sales growth and aggressive expansion into new cities.

Speaking at Kotak Institutional Equities’ Chasing Growth 2026 Investor Conference, CEO Sameer Khetarpal outlined a medium-term strategy focused on sustainable, execution-led growth rather than relying purely on macro consumption tailwinds.

Steady LFL Growth Anchors Strategy

Khetarpal said the company is targeting 5–7% like-for-like (LFL) growth, supported by historical performance. Over the past decade, Jubilant FoodWorks has delivered an 11.5% revenue CAGR and average LFL growth of around 5.5%.

“We want to build a 5–7% LFL business,” he said, emphasising operational consistency.

The broader growth model combines steady LFL expansion with 8–9% organic store additions annually. Incremental contributions from Popeyes are also expected to support performance. Together, these levers could deliver around 15% revenue and EBITDA growth over the medium term.

Expansion Beyond Metros

Store expansion remains central to the strategy. Jubilant currently operates in about 510 cities, leaving substantial headroom compared to other retail networks with deeper penetration.

Growth will be driven through three channels: entering smaller cities with limited organised QSR presence, increasing coverage in partially penetrated markets, and adding outlets in metros to boost delivery speed and frequency.

Higher store density enhances customer experience, particularly in fast-delivery formats such as the company’s 20-minute service initiative. Broader distribution, including railway catering platforms, is also widening access.

Margin Improvement and Industry Consolidation

Margins are expected to benefit from lower supply-chain costs, improved operating leverage, and faster tech deployment. The company aims to expand margins by around 200 basis points from FY24 levels.

Khetarpal also sees consolidation in India’s QSR industry as a positive, with mergers and ownership changes pushing the sector toward more sustainable business models.

With a current market capitalisation of ₹33,784 crore, Jubilant’s stock has fallen over 24% in the past year. However, management believes disciplined execution and structural industry tailwinds provide a long-term growth runway.

Conclusion

Jubilant FoodWorks is betting on scale, operational efficiency, and India’s underpenetrated food services market to drive its next phase of growth. If execution stays on track, the company could emerge stronger despite near-term stock volatility.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.