Key Financial Performance (Q1 FY27)

Revenue Performance:

  • Consolidated revenue reached a record ₹7.36 billion, representing 12% year-on-year growth
  • Highest quarterly growth rate achieved in the recent past

Same-Store Sales Growth (SSSG):

  • SSSG stood at 4.3% for the quarter
  • Positive growth recorded in all three months (April, May, June)
  • May and June were particularly strong with mid-single-digit SSSG
  • Momentum continued into July 2026

Profitability Metrics:

  • Operating EBITDA margin remained broadly stable year-on-year despite inflationary pressures
  • Operating EBITDA stood at ₹946 million, up 11% year-on-year
  • Restaurant operating margin reached approximately ₹1.4 billion, up 5% year-on-year
  • Gross margin was stable at 67.6% compared to last year
  • Cash PAT was ₹516 million (7% of sales)

Digital Performance:

  • Digital sales contribution stood at 74%, up approximately 150 basis points year-on-year
  • Cumulative app downloads crossed 55 million
  • Approximately 3.7 million monthly active users

Inflation Impact:

  • Company faced over 200 basis points of inflation across different line items
  • Primary inflationary pressures came from fuel, food, packaging, utilities, and labor costs due to minimum wage increases
  • Management stated this represents the peak of inflationary impact and expects improvements going forward

Operational Highlights

Store Network:

  • Total restaurant count: 482 across 79 cities
  • 5 new restaurants opened during Q1 FY27
  • Guidance of over 60 new restaurants in FY27 reaffirmed
  • Long-term target of 580-630 restaurants by December 2027 remains on track

Regional Performance:

  • West region continued strong performance
  • South region showed significant improvement with positive same-store sales growth
  • Double-digit guest count growth across all three months in South region
  • Organizational restructuring from three divisions to five to improve market proximity

Strategic Initiatives:

  • Everyday value platform continues as central driver of footfall growth
  • Launched "Let's Family at McDonald's" brand campaign celebrating 30 years in India
  • Received Global Breaking Ground Development Award from McDonald's Corporation for development excellence

Capital Distribution

  • Board of Directors approved an interim dividend of ₹0.40 per equity share

Management Guidance & Outlook

Margin Expectations:

  • Target of 100-150 basis points annual EBITDA margin improvement
  • Confidence in P&L optimization despite current inflationary environment
  • Operating leverage expected to drive margin expansion as growth continues

Growth Strategy:

  • Focus on sustainable volume-led growth through value platform and operational excellence
  • Continued emphasis on quality, service, cleanliness, and value disciplines
  • Enhanced data capabilities and decision-making tools for teams
  • Market-specific approaches with closer consumer proximity

Channel Performance:

  • On-premise and off-premise channels grew broadly in line (12% and 11% year-on-year respectively)
  • McDelivery remains key growth engine within off-premise segment

Q&A Session Key Takeaways

Margin Sustainability: Management expressed confidence in achieving 100-150 bps annual margin improvement through product mix optimization, cost engineering, restaurant-level improvements, and selective pricing actions.

South Region Turnaround: Execution improvements, local consumer relevance initiatives, and network expansion are driving positive results in South India, with the region achieving positive SSSG.

Inflation Management: Company absorbed unprecedented inflation through cost governance and operating leverage without taking price increases yet. Annual price increase guidance of ~3% remains, but timing will be determined by consumer research.

Growth Momentum: December 2026 was identified as an inflection point, with momentum building through Q4 FY26 and Q1 FY27. Management believes current growth vectors are sustainable.

Digital Strategy: Two separate applications (dine-in offers and delivery) will continue with distinct purposes, though integration may be considered later.

Store Economics: Unit economics remain stable with average unit volumes 80% higher than competitors. Expansion follows prudent profitability-led approach focusing on site quality and payback periods.