Jubilant FoodWorks Ltd, which runs Domino’s Pizza and Dunkin’ Donuts fast food restaurant chains in India, said second quarter profit dropped 17.6% on rising costs.

Net profit fell to Rs.23.88 crore for the quarter ended 30 September from Rs.29 crore a year ago, the firm said on Thursday.

Income from operations rose 17.2% to Rs.587.53 crore in the September quarter from Rs.501.16 crore in the year-ago quarter as it opened outlets and increased prices for Domino’s Pizza, the firm said in a statement.

Total costs rose 20% to Rs.555 crore from a year ago. Growth in same-store sales, or outlets that were open for at least one year, rose 3.2% during the quarter.

During the quarter, the company added 39 new Domino’s Pizza and seven Dunkin’ Donuts outlets. The firm also entered eight new cities.

In the current fiscal year, it aims to open a total of 150 Domino’s Pizza and 30 Dunkin’ Donuts outlets across new and existing markets, the firm said. It currently operates 950 Domino’s Pizza and 68 Dunkin’ Donuts outlets in 216 cities.

About 30% of its delivery orders comes from mobile apps, compared with around 21% a year ago, Jubilant Foodworks said. “Online ordering has continued to gain popularity among our customers and this quarter, contribution of online sales to our delivery sales stood at 36%, which is a marked increase from the same period last year. We are optimistic about the trends emerging on account of e-commerce and will definitely concentrate our efforts to further build our OLO (online ordering) platform,” said Ajay Kaul, chief executive of Jubilant FoodWorks.

“We are committed to continue our journey with appropriate investments as we have confidence that there is more growth and opportunity ahead for our company,” Kaul said.