McDonald’s India franchisee Westlife Foodworld on Wednesday released its fiscal third quarter earnings report with profit at Rs 7.01 crore, recording a drop of 59.34 per cent in comparison to Rs 17.24 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 653.72 crore, up 8.91 per cent as against Rs 600.26 crore during the same period of previous financial year. The company EBITDA stood at Rs 89 crore, up 3.2 per cent YoY.
The company achieved Q3 sales of Rs 654.00 crore, posting a growth of 9 per cent YoY. Same Store Sales Growth (SSSG) improved to 2.8 per cent YoY. This growth, it said, was driven by gradually improving footfalls and a stable average check. The momentum was broad-based, with both on-premise and off-premise businesses growing at 9 per cent YoY. Off-premise channels, which contributed 42 per cent to total sales, remained stable and aligned with the past two-year average. Westlife Foodworld said that digital channels contributed over 70 per cent of total sales during the quarter, fuelled by increasing adoption of Self-Ordering Kiosks (SOK) and a growing base of My M Rewards Loyalty program enrolments. The cumulative app downloads, the company said, exceeded 39 million, with a 13 per cent YoY increase in monthly active users.
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Gross margins improved sequentially to 70.1 per cent, supported by a portfolio-level price hike of about 50 basis points. “The company remains focused on maintaining stable gross margins at ~70 per cent levels in the near term. However, Restaurant Operating Margins and Operating EBITDA margin were lower by around 200 basis points YoY due to operating deleverage and higher advertising and promotional spends,” it said. Profitability, meanwhile, is expected to improve with higher volumes, and the company remains steadfast in its goal of delivering 18-20 per cent operating EBITDA margin by 2027.
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