NEW DELHI: Covid-19 might be having a devastating impact on the revenues of quick service restaurants (QSRs), but the shares of this pizza maker have climbed 41 per cent year to date and 85 per cent in the last one year, suggesting no stress on the stock whatsoever.
This is even when the stock commands a trailing 12-month earnings per share of 220 times! This means an investor is paying Rs 220 for every Re 1 earned by the company in last 12 months.
The QSR, which commands a 72 per cent market share in the organised Indian pizza market last week posted a net loss of Rs 74 crore for June quarter, but that did not stop the stock from rallying 5 per cent that day.
This company is Jubilant FoodWorks. It owns the master franchise agreement with Domino’s International valid till 2024 and renewable thereafter for 10 years. The company also has exclusive rights for developing and operating the Dunkin’ Donuts restaurants in India.
Frequently Asked Questions (FAQS) About Pizza Franchises
Pizza is a very good business. Consider these 3 advantages to owning a pizza business:
1. Consumer demand: 13% of Americans over age 2 eat pizza on any given day. It’s popular all over. It is most popular in the Northeast and Midwest, according to PMQ Magazine. 3 We eat 3 billion pies per year.
2. Profitability: Ingredient costs are relatively low compared to the price charged, ensuring profitability.
3. Growing industry: The pizza industry is $47 billion a year, and franchises constitute $36.4 billion of that, according to research firm IBISWorld. It is forecast to continue growing over the next five years.
Pizza has become a food staple — whether deep dish, thin crust, unusual toppings or more. Among food franchises it is one of the most popular categories. You get the benefits of the franchise system and branding, together with sound business fundamentals and help choosing locations.
Accordion Sample DesThe amount you make with franchise pizza depends on the type of pizza business you operate. For example, the average Dominoes owner might expect to make between $107,000 to $116,000 per year, according to Glassdoor. However, a Papa John’s franchise owner might make about $142,000 before taxes, says Franchise.com. First, of course, you need to subtract out costs related to food, labor, marketing, supplies, royalty fees and real estate associated with these franchises.cription
Yes, a pizza franchise can be profitable. For example, the top 75 percent of Marco’s Pizza restaurants made between $543,093 and $1,736,679 in net royalty sales in 2019. The average store spent about 31 percent on food and supplies and 25 percent on labor. The exact amount each store makes depends on the size, market, and expenses.
Opening a pizza franchise can cost anywhere from $25,000 to over $1 million, depending on locations of your franchise business and other factors. Most fall somewhere between $200,000 and $600,000. Those that just offer a mobile component or pickup and delivery service tend to be cheaper. Large, dine-in restaurant locations with extensive menus fall on the more expensive end of the spectrum.
