Burgers, Coffee Turn Favourites in First Quarter, Pizza Loses Out
In the April-June quarter, companies running burger fast-food chains registered more sales than the pizza firms.
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Burgers and coffee seemed to appeal to Indian taste buds more than pizza in the April-June quarter, helping Westlife Development Ltd, which runs McDonald’s, and Coffee Day Enterprises Ltd report a rise in sales, while Jubilant Foodworks Ltd, which runs Domino’s Pizza, witnessed a decline.
In the quarter which ended on June, US-based Yum! Brands’ Pizza Hut saw its India sales decline 7 percent year-on-year, while KFC’s sales fell 1 percent, Edelweiss Financial Services Ltd said in a July report. The burger category is recovering faster than pizza, the report added.
“Burgers are priced relatively lower and fit into the all-day dining concept since they can be consumed both as a snack as well as a meal. On the other hand, a pizza is a more planned meal and is also priced higher,” Abneesh Roy, senior vice-president of Institutional Equities at Edelweiss, and the author of the report quoted above, told BloombergQuint over the phone.
Read more on BloombergQuint.