Westlife Foodworld Limited, the owner-operator of McDonald’s restaurants across West and South India, posted its fiscal first quarter profit at Rs 28.83 crore, up 22.3 per cent in comparison to Rs 23.58 crore during the first quarter of FY23. It posted revenue from operations at Rs 614.54 crore, up 14.2 per cent as against Rs 537.93 crore during the corresponding quarter of last year. The company clocked total income of Rs 619.82 crore during the quarter, up 14.8 per cent from Rs 539.74 crore during Q1FY23. However, total expenses for the quarter in review stood at Rs 579.24 crore, up 14 per cent in comparison to Rs 507.98 crore during the first quarter of FY23.
Westlife Foodworld also announced an interim dividend of Rs 3.45 per equity share of face value of Rs 2 each, i.e., of over 172 per cent, for the financial year 2023-2024. The company has fixed 8th August, 2023 as the record date for the purpose of ascertaining the eligibility of shareholders for payment of the aforesaid interim dividend declared by the Board, it said in a regulatory filing.
In the quarter under review, Westlife reported a sales growth of Rs 614 crore, clocking a 14 per cent YoY increase driven primarily by a 7 per cent YoY Same Store Sales Growth (SSSG). “Backed by a robust increase in guest count, the on-premise business saw an 18 per cent YoY growth, while the off-premise business expanded by 9 per cent YoY on a high base. Overall digital sales saw significant growth accounting for 64 per cent of total sales on the back of self-ordering-kiosks at restaurants and McDonald’s apps, thereby bringing a seamless digital experience come alive for our customers,” the company said.
Westlife’s Restaurant Operating Margin stood at Rs 141.20 crore, with a YoY growth of 21 per cent. The ROM for the quarter was 23 per cent compared to 21.6 per cent in Q1FY23.
“We are pleased with our first-quarter performance, which reflects the resilience of our business model and the strength of the McDonald’s brand in West and South India. Despite the challenging market conditions, we have been able to drive growth by focusing on core menu innovation, digital transformation, and enhancing customer convenience,” said Amit Jatia, Chairperson of Westlife Foodworld Limited.
In terms of its reach, as of June 2023, Westlife operates 361 restaurants across 58 cities, with four new stores opened during the first quarter. The company plans to add 40-45 new stores in FY24 and aims to reach between 580-630 stores by 2027. In terms of additions in its menu, Westlife launched the new Piri-Piri McSpicy range during the quarter. Further, the company roped in the Jr. NTR to introduce McSpicy Chicken Sharers on the McDonald’s menu in the South Market. The brand also rolled out its Jain-Friendly menu, an offering devoid of onions, garlic, and roots as a part of its Eatqual initiative.
Westlife has strategically focused its efforts on store modernization, enhancing digital capabilities, and menu innovation, particularly in the burger meals, chicken, and McCafe categories, to meet the diverse tastes of its consumers.