Westlife’s development soars over 9% after the company said it sold the most in the June quarter

Shares of Westlife Development – the master franchisee of McDonald’s restaurants in western and southern India – soared more than 9% after the company said sales in the April-June quarter had reached a record high.

As of 1:05 p.m., the stock was trading at Rs 590.4, an increase of 9.79% from the previous close on BSE.

The company said more than 55% of overall business growth for the quarter came from digital channels.

The company reported total revenue of Rs 538 crore, a jump of 108% from the corresponding period a year ago. On McDelivery App, Westlife recorded its highest quarterly revenue, with more than 18.5 million total downloads.

Westlife’s average annualized sales per store exceeded Rs 6 crore for three consecutive quarters, the company said in a regulatory filing.

At the operational level, the EBITDA margin was 17.1%. Profit after tax (PAT) was Rs 55 crore for the June quarter. The company recorded a 97% year-over-year growth in same-store sales growth (SSG). The restaurant’s operating margin (ROM) increased 4.5 times to 21.6%.

“For us, on-site dining has recovered extremely well, year on year it has increased by more than 420%. If you look at it from pre-COVID, it’s up 15%. While delivery and convenience is up 150% from pre-COVID and year-over-year it’s up 13-14%,” said Amit Jatia, Vice President of Westlife Development. at CNBCTV18.

The company added five restaurants over the three months, focusing on smaller and growing cities. Westlife expects to open 35 to 40 new restaurants in FY23 and more than 200 over the next three to four years.

“We have around 260 McCafe, the idea is to first increase it to 330 across the whole restaurant base, then as we add 200 new restaurants we will have all of them in McCafe. So you’ll see McCafe’s numbers double to over 500,” Jatia added.

(Edited by : Nishta Pandey)

First post: STI