* Popeyes emerges as second growth engine, CEO says

* Domino's dine-in recovery gains traction

* Jubilant confident of returning to 5%-7% same-store sales

growth

(Rewrites throughout with management commentary)

By Surbhi Misra

Aug 13 (Reuters) - India's Jubilant FoodWorks said

on Thursday its Popeyes fried chicken chain is emerging as a

second growth engine, while efforts to revive dine-in traffic at

Domino's Pizza are beginning to show early signs of success.

The operator of Domino's Pizza in India reported a 6% rise

in first-quarter profit earlier in the day, helped by growth in

its core business and continued store expansion.

Analysts had pointed to improving demand trends heading into

the quarter, with Jefferies expecting same-store sales growth to

improve sequentially.

Chief Executive Sameer Khetarpal said Popeyes' more than 40%

like-for-like sales growth was being driven by product

innovation, differentiated flavours and strong execution on

store openings.

"Popeyes definitely has become a second growth engine,"

Khetarpal said on a post-earnings call, adding that the company

sees significant room for further growth. Jubilant FoodWorks has

said it aims to build Popeyes into a 10-billion-rupee brand over

the next three to four years.

Khetarpal also said the company was increasingly directing

capital towards expanding Domino's and Popeyes outlets after

largely completing major supply-chain investments in recent

years.

DOMINO'S TURNAROUND

The company is making progress in reviving dine-in and

takeaway sales at Domino's, which have lagged the stronger

delivery business, according to Khetarpal.

Jubilant has appointed dedicated leadership for the channel,

upgraded dine-in-heavy stores and introduced store-specific

promotions, including Wednesday offers aimed at driving

footfall.

"The first goal is to stop the bleed," Khetarpal said,

adding that the company had already seen growth in its Wednesday

promotional programme.

Domino's India reported like-for-like sales growth of 2.5%

in the June quarter, up from 0.2% in the preceding quarter but

below the company's long-term annual target range of 5%-7%.

Khetarpal said delivery order volumes continued to grow

despite recent price increases, adding that the company had

focused on improving average order values while balancing

profitability and demand.

Despite the slower-than-target growth, Khetarpal said the

company remained confident of returning to the 5%-7% range over

time, citing improving demand trends and a stronger start to the

second quarter.