McDonald's India franchisee Westlife beats Q2 profit view on strong demand
Reuters
Published Nov 09, 2022 05:14AM ET
Updated Nov 09, 2022 05:26AM ET
BENGALURU - Westlife Foodworld Ltd, which owns the franchise for McDonald's Corp (NYSE:MCD) in west and south India, reported a bigger-than-expected second-quarter profit on Wednesday, helped by rising demand.
The company reported a consolidated net profit after tax of 315.5 million Indian rupees ($3.9 million) for the September quarter, compared with a loss of 44.2 million rupees a year ago, when there were still some COVID-19 restrictions.
Analysts on average had expected a profit of 246.6 million rupees, according to Refinitiv IBES data.
Sales surged 33% to 5.7 billion rupees, its highest ever quarterly sales, and the company achieved more than 67.5 million rupees in average annualized sales per store.
"Rising consumer demand in the QSR (quick service restaurant) industry enabled both on-premise as well as off-premise businesses to deliver solid numbers" said Amit Jatia, vice chairman of Westlife.
Westlife, which is on track to open 35-40 stores in 2023, saw a 52% rise in royalties to 261.9 million rupees.
"The price hike of 5% has been well accepted by customers and commodity inflation across the market has softened during the quarter," analysts at Dolat Capital said in a note.
Rival Jubilant FoodWorks Ltd, which runs the Domino's Pizza (NYSE:DPZ) chain in India, reported 10% rise in second-quarter profit on Tuesday.
Westlife Foodworld's shares have gained nearly 41% so far this year, while Jubilant's have lost nearly 15%. ($1 = 81.3650 Indian rupees)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.