McDonald’s India franchise Westlife Development breaks even, posts Rs22 lakh profit in Q1
Westlife Development Ltd, which operates the American fast food giant McDonald’s outlets in south and west India, on Tuesday reported it had broken even after same-store sales grew 8.7% from a year earlier for the quarter ended 30 June.
Westlife posted a small profit after tax worth Rs22 lakh for the quarter, compared to a Rs21 crore loss in the year-ago period. The company’s revenues rose to Rs262.32 crore for the quarter while store sales growth - which is sales from stores that have been open during the same period, excluding new stores—grew 8.7%. This rise in income was the “highest comparable growth” for the firm in over four years.
Growth in new restaurants along with the coffee-shop enclosures called McCafe’s and new “happy price combos” on the menu largely contributed to this growth, according to Amit Jatia, vice-chairman, Westlife Development Ltd.
“We will continue to build 25-30 stores (every year), and we are confident of delivering our Vision 2022, where we had said we will be between 400 and 500 restaurants,” he said.
Westlife has 261 McDonald’s restaurants in its region right now after adding three new ones this quarter ended June. It also added 10 more McCafe’s in this quarter, making it a total of 121.
Shares of Westlife Development closed at Rs261.60, up 0.29% while the benchmark Sensex closed at 32,575.17, up 0.19%.