When Jubilant FoodWorks brought Domino’s to India in the 1990s, the odds were stacked against it.
Pizza was an unfamiliar category, disposable incomes were low, and eating out was still a novelty for most Indian families.
What worked for Jubilant was the discipline to focus on three things: affordable pricing, an unmatched delivery network and consistent product quality.
The company never tried to be all things to all people. Instead, it doubled down on delivery. By promising pizzas within 30 minutes, Domino’s became synonymous with convenience.
At a time when restaurant dining was largely confined to metros, Domino’s entered smaller towns early and trained customers to order in.
Over time, this created habit formation.
People began to think of Domino’s not just as a weekend treat but as an everyday option.
Pricing strategy was crucial. Domino’s understood the need to stay accessible. It used value products such as the Rs 49 pizza and “buy one get one free” offers to capture new customers.
The company was careful to balance affordability with margins, cross-subsidising cheaper items with premium pizzas and side dishes.
Expansion was relentless. From a few hundred stores in 2010, Domino’s crossed 3,000 outlets in India by 2025. It is now the country’s largest QSR chain by far, with a market share in double digits.
Along the way, Jubilant achieved profitability early and kept debt low. This gave investors comfort that growth could be self-funded.
Today, Jubilant’s dominance is taken for granted. But it was built on years of grinding execution, not quick wins.
For shareholders, this translated into massive wealth creation. Over the past 15 years, Jubilant’s stock has surged more than 25-fold, rewarding early believers in the company’s long-term growth story.
Where RBA Stands Today
Restaurant Brands Asia (RBA), which operates Burger King in India, finds itself at a similar starting line.
It has grown to more than 500 stores by mid-2025 and plans to reach 800 by FY29.
The strategy is to maintain affordability while rolling out new concepts such as BK Café, which is already present in almost all outlets. The company also leans heavily on its app, which drives a third of dine-in transactions.
Same-store sales growth, however, is modest. In Q1FY26, RBA reported just 2.6% growth, down from 5.1% in the previous quarter.
Average daily sales have improved, but a closer look shows customers shifting toward cheaper items. Premium products have not gained traction, which puts pressure on margins.
The contrast with Jubilant is clear.
By the time Domino’s had 500 stores, it was already generating healthy profits and reinvesting cash flows into expansion.
RBA, in comparison, is still loss-making. Net losses are expected to continue until at least FY28. Debt is high, with net debt-to-equity projected near 300% in the coming years.
The other weak spot is Indonesia, where RBA runs Burger King and Popeyes. Sales there fell again in FY26, weighed down by store closures. Management has been pruning loss-making outlets and renegotiating rents, but the turnaround has been slower than expected. Until this stabilises, the India business has to carry the entire group.
Competitive Intensity: A Crowded Table
Burger King in India is gaining share, but from a small base. In smaller cities like Agra, Jamshedpur and Solapur, its incremental customer ratings are much higher than its current ratings share. This shows consumers are trying the brand and liking it, which is a positive sign.
Yet competition is fierce. McDonald’s, operated by Westlife FoodWorld, remains entrenched.
The KFC franchise, operated by Devyani International, has been one of the fastest growers, climbing steadily in market share.
Local burger chains such as Burger Singh and Biggies Burger are also nibbling at the value end of the market. Domino’s still dominates pizzas, and its network gives it economies of scale that few can match.
For RBA, the challenge is to stand out in a cluttered market. Its strategy so far has leaned on value meals and frequent menu innovations, such as Korean spicy burgers and limited-time offers. These keep customers engaged, but margins remain thin.
The Valuation Question
Despite its losses, analysts continue to value RBA in comparison with Jubilant. The logic is simple: India’s QSR penetration is still low, incomes are rising, and the demographic profile supports decades of consumption growth.
The model assumes that RBA, like Jubilant before it, will eventually achieve scale and profitability.
But the road is longer.
Jubilant turned profitable early and used cash flows to expand. RBA is relying on debt and equity infusion, which carries risk. Investors must believe that losses today will translate into dominance tomorrow.
Lessons From Jubilant’s Early Bets
If RBA wants to emulate Jubilant, there are lessons from history.
Domino’s willingness to bet on free delivery in 2024 was one. At the time, the move cut average ticket sizes and worried investors. But it boosted customer acquisition and order frequency, benefits that compounded over time. The initial pain turned into long-term gain.
Jubilant also invested early in commissaries and regional offices to support growth. This back-end infrastructure ensured consistency in taste and supply, even as the store network ballooned. Customers knew exactly what to expect from a Domino’s outlet in a small town because it was backed by the same supply chain as in Delhi or Mumbai.
RBA has begun taking similar steps, such as investing in technology, rolling out self-ordering kiosks, and expanding its menu. The question is whether it has the financial cushion and execution discipline to see these investments through.
What Needs to Change for RBA
- Same-store sales must accelerate. Low single-digit growth will not create the operating leverage needed to turn profitable. Domino’s had years of double-digit order growth.
- Indonesia must stabilise. Continued losses from this market are a drag on consolidated performance. Rationalisation must end, and Popeyes needs to scale.
- Margins must expand. Management targets gross margins of 70% in India by FY29. Achieving this requires scale and a stronger mix of premium products.
- Leverage must come down. Debt levels are already high. Without deleveraging, equity dilution or balance sheet strain will remain a risk.
The Long View
RBA today looks more like Jubilant in 2008 or 2009, still laying the foundation.
The consumer traction is visible, especially in smaller cities.
Store additions remain steady, and digital engagement is strong.
The brand is becoming familiar to Indian consumers, which is the first step toward habit formation.
But the road to becoming the next Jubilant is long. Jubilant succeeded because it combined affordability with profitability early.
RBA is still waiting for that inflection point.
Investors who buy into the stock are betting not on the next quarter but on the next decade.
If RBA can lift same-store sales, expand margins, and turn Indonesia profitable, it can evolve into a compounding machine by the mid-2030s. Until then, it remains a long-duration, high-risk opportunity with potential upside if execution holds.
Disclaimer
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Manvi Aggarwal has been tracking the stock markets for nearly two decades. She spent about eight years as a financial analyst at a value-style fund, managing money for international investors. That’s where she honed her expertise in deep-dive research, looking beyond the obvious to spot value where others didn’t. Now, she brings that same sharp eye to uncovering overlooked and misunderstood investment opportunities in Indian equities. As a columnist for LiveMint and Equitymaster, she breaks down complex financial trends into actionable insights for investors.
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