Westlife Foodworld posts 8.7 per cent Q4 growth, expands to 478 outlets

MUMBAI: Westlife Foodworld Limited, the company that operates McDonald’s India West and South through its subsidiary Hardcastle Restaurants Pvt. Ltd., reported a steady performance for the fourth quarter of FY26, driven by value-led offerings, digital momentum and continued restaurant expansion.

The company posted revenue of Rs 6.55 billion in Q4 FY26, up 8.7 per cent year-on-year, despite what it described as a challenging consumption environment. Same Store Sales Growth (SSSG) stood at 1.5 per cent during the quarter, with momentum improving progressively across the three-month period.

Gross margins expanded by around 60 basis points sequentially, supported by supply chain efficiencies, while restaurant operating margins improved approximately 70 basis points year-on-year. Operating EBITDA rose 9.6 per cent year-on-year to Rs 870 million, with the EBITDA margin remaining broadly stable at 13.3 per cent.

Cash profit after tax came in at Rs 487 million, accounting for 7.4 per cent of sales during the quarter.

Demand trends remained mixed across channels, although on-premise sales continued to dominate, contributing 58 per cent of total revenue. Dine-in and takeaway segments recorded 9 per cent year-on-year growth, driven by positive footfall trends across all months of the quarter.

Off-premise sales increased 6 per cent year-on-year, with McDelivery emerging as a key growth engine as more consumers shifted towards app-based and convenience-led ordering.

The company said operational discipline helped offset near-term pressures from LPG price fluctuations and inflation across key commodities. Cost optimisation measures, proactive sourcing strategies and earlier investments in store modernisation also supported profitability.

On the expansion front, Westlife Foodworld Limited added 21 new restaurants during the quarter, taking its network to 478 outlets spread across 78 cities. The company remains on track to achieve its medium-term target of 580 to 630 restaurants by 2027.

The rollout of Experience of the Future (EOTF) and McCafé formats has now covered 100 per cent of eligible restaurants, strengthening the brand’s premium and convenience-focused positioning.

Westlife Foodworld Limited chairperson Amit Jatia said the company’s focus on value leadership, digital engagement and operational efficiency helped sustain margins while improving guest counts during a quarter marked by evolving market dynamics.

He added that the company remains focused on building a seamless omni-channel ecosystem and expanding its footprint with disciplined execution as the quick service restaurant sector continues to offer significant growth headroom.

Digital channels continued to play a bigger role in the business, contributing around 76 per cent of overall sales. The company reported nearly 3.5 million monthly active users and around 52 million cumulative app downloads, reflecting growing consumer preference for digital ordering.

Westlife also pushed value-driven campaigns during the quarter, including Everyday Value Meals priced at Rs 99, merchandise-led meal offerings featuring sippers and tote bags, and a monthly coffee subscription initiative through McCafé aimed at increasing customer frequency and loyalty.

With burgers, coffee and convenience now increasingly ordered with a tap instead of a queue, Westlife Foodworld is clearly betting big on digital habits while continuing to widen its footprint across India’s fast-growing QSR market.