Aug. 3 (Bloomberg) -- Jubilant FoodWorks Ltd. rose to a record after the Indian franchisee of Domino’s Pizza Inc. said it plans to add 70 stores in the year ending March to tap demand for pizzas and western food in the South Asian country.
Jubilant, which operates 320 Domino’s Pizza stores in India, will also spend as much as 60 million rupees ($1.3 million) to set up three outlets in neighboring Sri Lanka, Ajay Kaul, Jubilant’s chief executive officer, told reporters in New Delhi today. The company is considering alliances with other global food brands, though it hasn’t signed any deal, he said.
Shares climbed 14 percent, the most since April 7, to 420 rupees in Mumbai, the highest closing level since their debut in February. The stock gained as much as 15 percent earlier on the Bombay Stock Exchange.
Domino’s, based in Ann Arbor, Michigan, is expanding in the world’s second-most populous nation as overseas sales outpaced demand at home. India will be among the five biggest markets for the second-largest U.S. pizza maker in the next three years as rising incomes and taste for foreign food boost local sales 42 percent annually, Chief Executive Officer J. Patrick Doyle, said in March.
Urban Indians are eating out about six times a month, compared with 2.7 times a month in 2003, according to the Federation of Indian Chambers of Commerce and Industries’ Food Franchising Report 2009. Incomes in India may rise 10-fold by 2025, according to a study by McKinsey & Co.
Starbucks Corp., the world’s largest coffee-shop chain, was in talks with Jubilant for a possible alliance, the Economic Times newspaper had reported earlier this year.
New Delhi-based Jubilant attracted demand for about 31 times the stock on offer at its initial public offer in January, selling shares at 145 rupees apiece. It surged 58 percent in its Mumbai trading debut on Feb. 8.
Jubilant reported a profit of 152.8 million rupees on sales of 1.36 billion rupees in the quarter ended June 30, the company said in a statement.