Westlife Foodworld Q1 Results: McDonald’s operator profit drops 63% hit by depreciation costs

Westlife Foodworld Ltd, which operates McDonald’s outlets in West and South India, reported a 63.3% drop in first-quarter net profit to ₹1.2 crore from ₹3.3 crore a year earlier. The decline in profit was primarily due to higher depreciation expenses.Revenue rose 6.7% year-on-year to ₹657.6 crore, while EBITDA grew 8.5% to ₹85.2 crore. Operating margin improved slightly to 13% from 12.7% in the year-ago period. Same-store sales growth was at 0.5%, marking the third straight quarter of positive momentum, while on-premise sales rose 8% and off-premise sales grew 4%.

Digital sales contributed 75% of overall sales, driven by mobile apps and self-ordering kiosks, the company said. Gross margin improved 160 bps sequentially to 71.6%, aided by better supply chain efficiency.

Westlife added nine new restaurants in the quarter, taking its total count to 444 across 71 cities, and surpassed 100 Drive-Thrus, with 106 now contributing about 24% of its total store base.

The board approved an interim dividend of ₹0.75 per equity share. The record date for it is set as August 4 and payment expected on or before August 22.

Chairperson Amit Jatia said the company continues to invest in omni-channel capabilities and store modernisation under its Vision 2027 strategy, which targets an 18–20% operating EBITDA margin. Westlife Foodworld’s shares were trading 1.3% higher at a price of ₹770.15 on the BSE as of 3:00 pm IST.