McDonald\u2019s Corp. has a problem in India and its rivals are loving it.\u00a0Even as the world\u2019s largest restaurant chain tries to woo Indian stomachs with such menu items as the McAloo Tikki (a potato and pea patty on a bun), a legal dispute with a key franchisee partner has hampered its expansion. Shares of India\u2019s Domino\u2019s Pizza operator Jubilant Foodworks Ltd. have more than doubled in the past year as the country\u2019s biggest quick-service outlet benefits from a surge in online orders for home pizza delivery. A pickup in the economy and growing demand from the planet\u2019s largest youth population are boosting fast-food sales in India. Researcher Euromonitor International predicts the market will expand 5.8 percent to $21.2 billion this year - a 50 percent jump since 2008. Domino\u2019s and Subway have gained share, eroding McDonald\u2019s hold, Euromonitor data show. \u201cOur growth has completely petered off,\u201d said Vikram Bakshi, managing director of Connaught Plaza Restaurants Ltd., the joint venture company that manages McDonald\u2019s outlets in northern and eastern India, encompassing such cities as New Delhi and Kolkata. McDonald\u2019s terminated its agreement with Connaught in August, though the Indian venture has kept running its 169 outlets while the dispute is adjudicated in the courts. Bakshi has been fighting Oak Brook, Illinois-based McDonald\u2019s since 2013, the same year Domino\u2019s overtook McDonald\u2019s as India\u2019s largest fast-food brand. A McDonald\u2019s spokesman declined to comment on the matter because it\u2019s under judicial consideration and prohibited from being discussed outside of the courts. The Indian unit of the U.S. company hasn\u2019t been able to verify if Connaught-run restaurants are complying with McDonald\u2019s standards, he said. Connaught has engaged a new logistics partner, ColdEX Logistics Pvt Ltd., which provides distribution services for other multinational food-service brands, and Connaught is compliant with India\u2019s food industry regulations, Bakshi said. Opening Outlets Westlife Development Ltd., the other McDonald\u2019s franchise partner, runs 271 stores in the southern and western parts of India. According to a company spokeswoman, it plans to expand to as many as 500 outlets by 2022 - growth prospects that have helped propel the shares 53 percent in the past 12 months. Meantime, Jubilant Foodworks is forging ahead and has said the company is on course to have added at least 30 Domino\u2019s stores this financial year to its 1,127-strong network across 265 cities. \u201cThere is significant potential for the pizza business in the country, and we are committed to leveraging that potential,\u201d Chief Financial Officer Pratik Pota told analysts and investors on a conference call in January, according to a transcript. Jubilant\u2019s profit more than tripled to 660 million rupees in the quarter ended Dec. 31 from a year earlier, helped by the Indian government\u2019s introduction of a goods and services tax for restaurants in July, which Co-Chairman Hari Shanker Bhartia said would boost India\u2019s organized restaurant industry at the expense of \u201cunorganized\u201d vendors. Hawkers and small operators combined make up the bulk of India\u2019s fast-food market. Jubilant Investors The shares have climbed 33 percent in Mumbai trading this year, making Jubilant the best-performer among stocks on the S&P BSE 200 Index.\u00a0\u201cJubilant has clearly gained from the ongoing fracas\u201d involving McDonald\u2019s, said Santosh Kanekar, an adviser at BeLive Corp. in Mumbai. Chains such as Burger King and KFC will also be trying to gain market share, he said. Domino\u2019s became the first food-services company in India to begin taking online orders nationwide, Jubilant said in 2011. Since then, online ordering has become \u201ca significant engine of growth,\u201d Pota said on the Jan. 19earnings call. \u201cAs technology gets embraced across the pop strata, as smartphone penetration increases, I\u2019d expect this growth to continue.\u201d\u00a0As for McDonald\u2019s, resolution with Connaught will take time, the spokesman said. Meantime, India remains an important market and its local unit is looking for a new partner, he said.