Online food aggregators could keep QSRs hungry, dent stock performance

Despite a high base of 24-26 per cent in the June 2018 quarter (Q1FY19), analysts expect Jubilant and Westlife to report 6-8 per cent same-store sales growth (SSG) in Q1FY20

Listed quick service restaurants (QSRs) Jubilant FoodWorks and Westlife Development are expected to report steady growth for the June quarter (Q1), despite moderation in consumption. However, with parent Domino’s Pizza indicating competitive pressure from online aggregators, same-store sales growth (SSG) of Indian QSRs could fall short of expectations. 

This could hurt their stock performance, given SSG is a key performance measure for retailers and restaurants. While Jubilant runs stores of Domino’s Pizza in the country, Westlife-owned Hardcastle Restaurants runs McDonald’s outlets in West and South India. 

The Indian Premier League (IPL) and Cricket World Cup were expected to give a fillip to