The QSR chain operator aims to open 250 to 275 new stores in FY25 across all its brands
Mumbai: Devyani International Ltd., the largest franchisee of Yum Brands (KFC & Pizza Hut) in India, is on track to achieve its target of reaching the 2,000-store count milestone this fiscal, a top executive said in the investors and analysts call.
This will include stores across its entire brand portfolio, which includes KFC, Pizza Hut, Costa Coffee, and Vaango.
“We are on track to achieve a total score count of 2,000 stores within the current fiscal year, a milestone that underscores our commitment to growth and our confidence in the future potential of our markets,” Chairman Ravi Kant Jaipuria said in his address during the earnings conference call for the first quarter (Q1) of the financial year (FY) 2025.
“We remain bullish on the India story and the QSR space in the medium and long term and are confident that these favourable trends will continue to drive our expansion and success,” he added.
As of 30 June 2024, DIL had 1836 stores across its portfolio, out of which 1,738 stores were across its core brands, namely KFC, Pizza Hut, and Costa Coffee. The core brand storefront at the end of the June quarter stood at 970 KFC stores, 576 Pizza Hut stores, and 192 Costa Coffee stores.
It added 54 new stores (21 KFC, 3 Pizza Hut, and 30 Costa Coffee) during the quarter, most of which were in markets, which were under-penetrated by the company.
The total number of international stores was 363 with the addition of 10 new stores in quarter one. “The international revenue for the quarter was rupees 390 crores, giving a gross margin of 63.7% and the brand contribution margin of 14.8%,” shared Manish Dawar, chief financial officer and whole-time director of the company.
The company also operates various institutional businesses including food courts and airport outlets, which the company will focus on enhancing in the coming quarters.
The company, which went public in, August 2021, reported a net profit of Rs 22.43 crore for the quarter as compared to a net loss of Rs 1.6 crore in the same period last year.
Office bearers of the company attributed the all-round improvement in its financial performance to better cost leverage across all its operations.
“DIL remains focused on delivering value-driven options to its consumers, navigating market dynamics, and driving growth through innovative marketing campaigns and promotional offers. The company’s store expansion plan is dynamic, aiming to open 250 to 275 new stores in FY25 and maintain momentum across all its brands,” stock broking firm Angel One said in its report on the company.
Recently, DIL registered an entity Devyani PVR INOX Food Court Ltd., with multiplex operator PVR Inox in which it holds 51% stake. The new entity will operate food courts in shopping malls under the brand name Treat Junction. Read more about it here.
