Here is the original documentary, posted around two years ago on youtube. It seems to be in Dutch, with some parts in English.
Jump to 20 min, to hear about Dominos India.
The film is about Junk food and its ill effects in general. IMHO It Does not seem to be fake in any way and it is not targeting Dominoes specifically but Junk food in general.
Though Dominos assures it’s customers that they use real cheese, question is Can this fake video dent its sales?
From time to time these things keep happening. There was the Maggi controversy some time ago. Pepsi, Coca Cola, McDonald’s, KFC - all of them face variety of allegations all the time. There is no need to worry about such videos.
Its not only pizza…we have chowmein, burgers, Mccain products like smilies , samosa, mithai…choclates…pastry…cakes…its difficult to stop kids/young ones from consuming them…infact I have rarely seen kids parties happening without a pizza or burger…its a growing trend per my limited knowledge.
HSBC has maintained ‘hold’ rating on Jubilant FoodWorksNSE 0.60 % and raised target price to Rs 2,600 from Rs 1,640. The firm said Jubilant FoodWorks’ exceptional success in turning around the same store sales growth and profitability has catapulted it into a solid growth story. Jubilant trades at FY20 EV/ EBITDA of 22 times, which still appears significantly below the other structurally attractive network rollout stories such as Titan and Avenue Supermarts.
In a dramatic twist to the ‘fake BBC video on Domino’s’ that went viral on social media last week, Jubilant FoodWorks on Monday filed a First Information Report (FIR) in Noida against Eeshaan Kashyap, who allegedly impersonated in the viral video as Domino’s chef.
“The accused person makes multiple false accusations against Domino’s and gravely harms the reputation by way of his impersonation and illegal act and conduct of forgery and cheating,” Jubilant states in the FIR, a copy of which was reviewed by Forbes India. Kashyap never worked with Jubilant FoodWorks as an employee or a consultant, Domino’s India spokesperson asserted. “Many statements in the viral video are false, misleading and damaging to the reputation of our brand,” the spokesperson added.
As expected, very strong set of results by dominos. If you look at the market cap its close to 17000 cr which is pretty much the size of the entire Indian pizza segment ( as per NRAI its 6% of 3.5L cr food services market based on The Food service report 2016). However QSR chained restaurants are growing at 18%-20% - aided by the strong mall growth numbers
The growth in app downloads also augurs well as Online orders accounts for a major portion of the sales. In Q4 there were 9.6 mil app cumulative downloads and 0.6 million added during the 3 months. The % of Online to total delivery has also jumped significantly to 63% in Q418. It was 51% in Q4 17 and 68% of Online orders comes through mobile phones up from 58% in Q417. Clearly, the digital sales are driving the growth. There is also Bangladesh that is yet to be activated.
I visited my local Dunkin Donuts on Saturday. Surprisingly, they are localizing themselves to compete with smaller outlets. For example, Dunkin is now selling freshly brewed tea and dip-dip biscuits. It’s a big draw in a corporate environment. The price is about 40 bucks but a customer tends to spend more once acquired. More importantly, Dunkin is showing its ability to localize which is a big + for Jubilant.
Below could be one of the reasons that promoters need to desperately sell thier stake in Jubilant Foodworks:
Basic question. What is the contract terms (how long they can use dominos branding) between jubilant foods with dominos?
Jubilant FoodWorks reported strong numbers for Q1FY19 .
- Revenue for the quarter jumped by 26% yoy (on a favourable base) to Rs855.1cr,
- EBITDA grew strongly by 78.5% yoy to Rs142.1cr,
- Led by decline in employee, rent and other expenses as percent of net sales, the EBITDA margin expanded by 489bps yoy to 16.6%.
- Deprecation was down by 20.9% yoy and other income jumped to Rs7.1cr (against Rs3cr in Q1FY18).
- Thus, PAT for the quarter stood at Rs74.7cr against Rs23.8cr in Q1FY18.
<<Same store sales growth (SSSG) for the quarter stood at 25.9% yoy>>