Why Domino’s outperformed every QSR rival this quarter
While consumer demand remains weak and holiday conflicts negatively impact out-of-home dining, Jubilant delivered strong revenue growth; This was something their peers had difficulty achieving.
The company in the September quarter ₹Revenues increased 19.7% year on year to Rs 2,340.15 crore, while net profit doubled to Rs 2,340.15 crore ₹194.6 crore.
Jubilant’s outstanding performance in the $27.8 billion QSR market, said to reach $43.5 billion by 2030, underlines how the industry’s center of gravity is shifting. A convenience-first delivery model, aggressive value pricing and a broad loyalty base are emerging as true drivers of growth at a time when dining remains slow and consumers are increasingly seeking the speed and convenience popularized by 10-minute flash commerce platforms.
“Domino’s has the biggest share of mind in delivery; people associate it with reliability and speed,” said Satish Meena, founder of market intelligence firm Datum Intelligence.
“Domino’s India achieved 9.1% same-store sales growth despite the onset of Navratri,” said Sameer Khetarpal, Managing Director and CEO. He credited the delivery-oriented model and product innovation for helping the company outperform the market. Many Hindus fast during the nine-day Navratri period.
The company, which operates Domino’s Pizza, Popeyes and Dunkin’ Donuts, added 93 new stores during the quarter, including 81 Domino’s stores, reaching nearly 3,500 stores in India and international markets.
Others are feeling the heat
The rest of the QSR group had a much tougher quarter.
Westlife Foodworld (McDonald’s west and south India) reported 3.8% revenue growth ₹642 crore as consumers reduce dining out. Restaurant operating margin maintained 19.2%, while higher input and delivery costs offset efficiency gains.
“The second quarter was marked by continued softness in discretionary spending and the frequency of dining out,” said Saurabh Kalra, managing director of Westlife Foodworld.
Devyani International (KFC, Pizza Hut) increased revenue by 12.6% ₹1,377 crore, but margins weakened due to slower dine-in recovery and rising aggregator commissions.
“Both Shraavana and Navaratri falling in the same quarter affected out-of-home consumption,” said Ravi Jaipuria, chairman of Devyani International. The overlap of the two fasting periods resulted in a decline in meat consumption and reduced demand for KFC’s chicken-heavy menu.
Sapphire Foods (KFC, Pizza Hut) entered a crisis ₹12.8 crore loss, EBITDA margins fell 230 basis points to 14.3%.
“Consumer discretionary spending remains constrained; nothing has improved materially,” said Sanjay Purohit, CEO of Sapphire Foods. KFC’s same-store sales growth fell 3%, while Pizza Hut revenue fell 6% year over year.
Sector weakness deepens further
According to the Bernstein report dated November 6, 2025, softness in India’s QSR sector in the September quarter was partly seasonal – impacted by festive clashes, rains and weak consumer spending – but also reflected broader macro weakness.
“High delivery mix erodes margins as delivery economics are less profitable,” the memo said, adding that structural improvement in KFC and Pizza Hut’s economics will require more than promotions and cost adjustments.
QSR chains across the country have turned to deep discounts and value-oriented offers, like McDonald’s ₹69 McSaver combination, KFC’s “9 for ₹299″ buckets and Pizza Hut’s “Buy 1 Get 3” deals – to keep customers coming. While these helped maintain market share, they came at the expense of profitability and further squeezed margins.
Rising aggregator commissions and a slowing dining recovery are also hurting margins, executives said. Dependence on platforms like Swiggy and Zomato has added to costs, while dine-in, typically a higher-margin business, has remained below pre-pandemic levels.
Why did Jubilant keep winning?
Jubilant’s biggest advantage was its wholly owned delivery network, which protected it from aggregator commissions and helped it control pricing, speed, and experience.
Its “Free Delivery” offer, 20-minute delivery promise and 40 million-member loyalty program kept repeat orders strong.
“Even if others are delivering in 30 minutes, the first brand that comes to mind is Domino’s,” Meena said.
Meena also said Domino’s ability to keep pizza “affordable and exciting” helps sustain demand. “They worked hard on pricing and getting the pizzas to market. ₹149 or ₹199, came in volumes. “They also added new premium options, including Korean pizzas and larger pizzas, to keep the menu fresh,” he said.
He added that pizza remains one of the most ordered items on food delivery platforms, giving the category resilience even in a weak consumption environment.
Optimism rises for December quarter
QSR operators expect the traditionally strong December quarter for food services to bring relief. Jubilant’s Khetarpal said October sales were already “ahead of plan” and he expected strong festive momentum to drive double-digit growth in the second half.
“Food and QSR spending does not decrease after Diwali,” Meena said. “The season continues into the New Year as more visitors to shopping malls, travel and social gatherings increase consumption.”
Saurabh Kalra, managing director of Westlife Foodworld, also said optimistically: “During the festive period, consumer sentiment generally increases and the number of footfalls in stores increases, which is supported by new menu innovations and value-oriented offers.”
Even Devyani International, which bore the brunt of back-to-back fasting periods in the September quarter, said demand should pick up as consumption normalizes post-Navratri.
HT Media Ltd, which publishes Mint, and the backers of Jubilant Foodworks are closely related. However, neither promoter has cross-holdings.
