Jubilant FoodWorks Shuts 105 Stores In Q2
People enter a Domino’s Pizza outlet operated by Jubilant Foodworks Ltd. in Amritsar, India. (Photographer: Brent Lewin/Bloomberg)

Jubilant FoodWorks Shuts 105 Stores In Q2

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Jubilant FoodWorks Ltd., which operates fast-food chains Domino's Pizza and Dunkin' Donuts, closed a total of 105 stores in the July-September quarter, the company said.

It has closed 100 stores of Domino's Pizza in the second quarter of this fiscal, bringing it down to 1,264 stores. However, it also opened 10 new stores of Domino's Pizza and ventured into a new city as well but its operations have been reduced to 281 cities as of Sept. 30, 2020.

The firm has also closed five restaurants of Dunkin' Donuts, bringing down the number down to 26 from 30 though it has opened one new restaurant, the company said in a regulatory filing.

"The group decided to close 105 stores during the quarter ended September 30, 2020 and accordingly the effect of the closure on property, plant and equipment by way of accelerated depreciation and de-recognition of rights of use assets and related lease liabilities have been considered in the financial results," said JFL.

It had closed 9 stores during the April-June quarter, it said.

"The impact for the quarter and six months ended September 30, 2020 on this account is Rs 16.74 crore and Rs 19.62 crore, respectively included in depreciation and amortisation expense and Rs 20.37 crore and Rs 20.88 crore, respectively... towards de-recognition of right-of-use assets and lease liabilities," it said.

JFL's consolidated revenue from operations in Q2/FY 2020-21 was down 18.2% to Rs 816.33 crore during the quarter under review as against Rs 998.05 crore of the corresponding quarter last fiscal.

According to the company, the Covid-19 situations affected the normal dine-in operations of the restaurants resulting in lower sales.

“However, the group has taken various measures to protect profit margins. The group has made detailed assessments of its liquidity position for the next one year and of the recoverability and carrying values of all its assets and liabilities as on Sept. 30, 2020 and on the basis of evaluation based on the current estimates has concluded that no material adjustments is required in the consolidated financial results,” it said.

Jubilant, which also operates 22 stores in Sri Lanka and four stores in Bangladesh of Domino's, said it continued uninterrupted operations during the quarter and overall system sales recovery was 87% and 81%, respectively.

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