Westlife Foodworld's Q1 net profit falls 52% despite 12% revenue growth on higher McDonald's footfall
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Westlife Foodworld , the operator of McDonald's restaurants across west and south India, reported a 52% year on year decline in consolidated net profit for the first quarter of FY27, even as higher customer footfall and its affordability strategy helped deliver double digit revenue growth.
The company posted a consolidated net profit of ₹58.7 lakh for the quarter ended June 30, compared with ₹1.23 crore in the corresponding quarter last year. Revenue from operations rose 11.9% to ₹735.6 crore from ₹657.6 crore a year ago, while profit before tax declined to ₹78.8 lakh from ₹1.66 crore.
The performance was driven by strong guest additions, with consumers continuing to respond to the company's value offerings. Same store sales growth improved to 4.3%, marking the strongest momentum in recent quarters, supported by double digit guest count growth. The company said May and June recorded particularly strong performances with mid-single digit same store sales growth.
"We have started FY27 on a strong note, with improving same store sales and double-digit revenue growth reflecting the strength of our value platform and disciplined execution. Despite near term inflationary pressures, we continued to deliver sustained profitability while strengthening customer engagement across channels," said Amit Jatia, chairperson, Westlife Foodworld.
Value platform, digital channels support growth
The company's ₹99 Everyday Value platform remained the biggest contributor to guest count growth during the quarter, while menu innovation and marketing campaigns helped drive customer engagement. During the period, Westlife also launched its "Let's Family at McD" campaign to commemorate 30 years of McDonald's in India.
Demand remained healthy across channels. Dine in and takeaway accounted for 59% of system sales, while delivery continued to outperform and strengthen its position as a key growth engine.
Digital adoption also continued to rise. Around 74% of sales came through digital channels during the quarter. The McDonald's app crossed 55 million cumulative downloads, while monthly active users exceeded 3.7 million, highlighting the growing importance of the company's omnichannel strategy.
Operating performance remained steady despite pressure on the bottom line. Operating EBITDA rose 11% year on year to ₹94.6 crore, while the operating EBITDA margin stood at 12.9%. Restaurant operating margin was 18.6%, supported by operating leverage and disciplined cost management. Cash profit after tax stood at ₹51.7 crore, representing 7% of sales.
The company added five restaurants during the quarter, taking its network to 482 outlets across 79 cities, and said it remains on track to reach 580 to 630 restaurants by December 2027. Looking ahead, Jatia said Westlife Foodworld will continue to strengthen its omnichannel platform, expand its restaurant network and focus on affordability to drive long-term growth.
"As we celebrate 30 years of McDonald's in India, we remain focused on delivering great value, expanding accessibility and driving sustainable growth through our omnichannel platform and restaurant expansion strategy," he said.