Westlife Foodworld Ltd – Investor Presentation Summary

Key Operational Highlights

  • Sales: ₹7.47 bn, 16.3% YoY growth | 10.1% SSSG (Same Store Sales Growth)
  • Store Network: 492 restaurants across 80 cities (+11 net additions in Q2 FY27)
  • Comparable AUV (TTM): ₹62.3 mn, 3% YoY growth
  • Guest Count: Double-digit growth across all three months of the quarter
  • Digital Sales: +75% contribution (Mobile Apps + Self Ordering Kiosks)
  • App Downloads: 58 mn Life To Date (LTD) | Monthly Active Users (MAU): ~4.2 mn
  • On-premise Sales: 17% YoY growth, 59% contribution to total sales
  • New Stores Target: 60+ openings in FY27, on track for 580+ restaurants by March 2028

Key drivers of operational performance: Double-digit SSSG driven by operational excellence, strong growth momentum in South market, everyday value meal as primary driver of guest count growth, limited-time offerings (Fam Fries and Spider-Man Meal) showing strong traction.

Segment-wise Performance

  • On-premise (Dine In & Takeaway): 17% YoY growth, 59% contribution
  • Off-premise (Delivery, On-The-Go Pickup & Drive Thrus): Growth broadly in line with on-premise
  • McDelivery: Continued strong growth, strengthening position as preferred delivery channel
  • Regional Performance: Continued growth momentum in South market

Explanation of significant changes in segment performance: Broad-based performance across channels and regions with McDelivery witnessing strong growth and strengthening its position among loyal customers.

Financial Highlights

  • Revenue: ₹7,467.2 mn
  • Operating EBITDA: ₹980.5 mn (13.1% margin)
  • Cash PAT: ₹525.5 mn (7.0% margin)
  • Gross Profit: ₹5,045.9 mn (67.6% margin)
  • Restaurant Operating Margin (ROM): 19.3%
  • YoY Sales Growth: 16.3%
  • YoY EBITDA Growth: 29.1%
  • YoY Cash PAT Growth: 25% (based on Q2 FY26 adjusted Cash PAT, excluding exceptional items)

Drivers of financial performance: Strong topline growth supported by double-digit SSSG, operating leverage driving margin expansion despite cost pressures, robust cost governance and internal efficiencies helping maintain gross margin sequentially.

Key Risks: Cost pressures persisted across commodities and utilities, particularly oil and chicken; increase in minimum wages in Karnataka added to employee cost pressures.

Geographical Revenue Split

  • Domestic vs Export/Regional Revenue: Not Specified
  • Regional Breakdown: Strong growth momentum noted in South market specifically

Balance Sheet Snapshot

  • Net Debt/Equity: Not Specified
  • Reserves: Not Specified
  • Current Assets/Liabilities: Not Specified
  • Working Capital/Leverage Metrics: Not Specified
  • Financial Health Insights: Not Specified

Capex & Cash Flow Health

  • Capital Expenditure: Not Specified (but targeting 60+ new store openings in FY27)
  • Free Cash Flow: Not Specified
  • Operating Cash Flow: Not Specified
  • Net Debt Movement: Not Specified
  • Investment Rationale: Network expansion to penetrate unserved geographies and fortify existing markets

Strategic & R&D Initiatives

  • Three strategic focus areas: Winning proposition, Omni-channel integration, Network expansion
  • Consumer Proposition Framework: Drive aggressive guest growth through accessible value and iconic experiences
  • Omni-channel Strategy: Integrate various channels to One McDonald's platform for seamless consumer experience
  • Digital Transformation: Mobile apps, self-ordering kiosks, McDelivery platform
  • Brand Building: New brand anthem "For Your Every Family, Let's Family at McD" celebrating 30 years in India

Expected impact on growth: Digital sales contribution at +75%; targeting 580+ restaurants by March 2028 from current 492.

Strategic Rationale: Strengthened consumer proposition to drive scalable, profitable guest count growth; integrate channels for seamless experience; penetrate unserved geographies.

Industry Trends & Business Environment

  • Macro/Industry Trends: Cost pressures across commodities and utilities, particularly oil and chicken; wage inflation in certain regions (Karnataka minimum wage increase)
  • Impact on Company: Gross margin expected to remain above 67% in near term despite pressures; restaurant operating margin remained broadly stable YoY

Management Commentary & Growth Outlook

  • Strategic Outlook: "Growth remained firmly anchored in value, with the everyday value meal continuing to serve as the primary driver of guest count growth"; "Strong momentum reinforces our confidence in the underlying business, providing a healthy backdrop for the festive season"
  • FY Guidance: Target of 60+ new store openings in FY27; 580+ restaurants by March 2028
  • Market Share Targets: Not Specified
  • Risks and Opportunities: Food safety, quality and hygiene remain foundational; cost pressures expected to persist in commodities and utilities

ESG Updates

  • Food safety, quality and hygiene: "Foundational to the McDonald's system and are non-negotiable"; "Upholding rigorous standards across every stage, from sourcing and supply chain to food preparation and restaurant operations"