Are Domino's pizzas expensive in India?

Moneycontrol Bureau

Credit Suisse has maintained outperform rating on Jubilant Foodworks stating that its flagship brand Domino's Pizza has no pricing issue in India. As opposed to many analysts who feel that the pizza seller has become expensive (due to excessive price increases) compared to competitors, Credit Suisse thinks Domino's is very attractively priced at entry level. Jubilant increased prices by 6-7 percent in second half of 2016.

Credit Suisse argues that Pizza Mania priced at Rs 60 competes well not only with McDonalds, but with upcoming brands such as Faasos, and also with chains such as Shiv Sagar and unorganised road side food vendors. The only problem it finds in Domino's is that there is a large gap between the entry level pricing of Rs 60 and the next price point of Rs180. "The launch of the four variants of Pizza Mania bridges this gap," it says.

However, most analysts believe that due to high pricing same-stores-sales growth (SSSG) trends have not picked up for the company. In March quarter, Jubilant’s SSSG rose 160 basis points quarter on-on-quarter. Recently, the management as lowered store opening guidance to 130-140 new stores in FY17.