Brands
Westlife Foodworld targets 60 plus new restaurants annually after FY26 revenue rises 9 per cent in Q4
Coffee subscriptions, Rs 99 meals and 60 new outlets fuel FY27 growth ambitions
MUMBAI: Westlife Foodworld, the operator of McDonald’s restaurants in West and South India, said it plans to accelerate expansion by opening more than 60 restaurants annually after delivering steady growth in FY26 driven by improving guest counts, value offerings and digital engagement.
Speaking during the company’s Q4 FY26 earnings conference call, president and CEO Akshay Jatia said the company remained focused on “accessible everyday value combined with iconic McDonald’s experiences delivered with consistency and backed by strong economic discipline.”
For the quarter ended March 31, 2026, consolidated revenue stood at Rs 6.6 billion, up 9 per cent year-on-year, while full-year revenue reached Rs 26.3 billion, reflecting 5 per cent annual growth. Same-store sales growth for the quarter stood at 1.5 per cent, supported by mid-single-digit guest count growth.
“What is particularly reassuring is the underlying improvement in footfall trend with positive growth across footfalls across all three months of the quarter,” Jatia said during the call.
The company added 48 restaurants during FY26, taking its total restaurant count to 478 outlets across 78 cities. Going ahead, the company plans to scale up store additions as demand trends improve.
“Going forward, we plan to further accelerate our expansion by opening 60 plus restaurants annually with all new stores fully equipped with digital modern design and McCafes,” Jatia said.
Managing director Saurabh Kalra said the company’s focus on its everyday value platform helped improve customer traffic trends across markets, especially in South India.
“Value at McDonald’s is trusted, predictable, and habit-forming. Our 99 everyday value meal continues to witness strong traction and has driven encouraging dine-in footfall growth across all our regions,” he said.
Kalra added that the company deliberately shifted strategy toward driving higher customer volumes rather than focusing purely on ticket size growth.
“We wanted to really, really focus on volume. That’s what we did and we got good volume growth on our own channel, 3PO, and our dine-in,” he said.
The company also highlighted continued growth in digital channels. Digital sales contribution stood at 76 per cent, while cumulative app downloads crossed 52 million with around 3.5 million monthly active users.
On the profitability front, gross margin for the quarter stood at 68.1 per cent, improving sequentially despite inflationary pressure on commodities such as coffee and cocoa. Restaurant operating margins improved by around 70 basis points year-on-year.
Chief financial officer Shardul Doshi said inflationary pressures were being mitigated through supply chain efficiencies and cost optimisation programmes.
The management also discussed the company’s growing focus on McCafé as a long-term growth driver in India’s evolving coffee market.
“We want to create a daily coffee consuming habit in the country and democratize the coffee experience,” Kalra said, adding that the company’s coffee subscription programme was aimed at driving repeat visits and loyalty.
Westlife also reiterated confidence in its Vision 2027 strategy, which includes scaling revenue beyond Rs 3,000 crore while balancing same-store sales growth and network expansion.
The company further noted that partnerships with fuel retailers including Jio-bp, HPCL and BPCL would help expand its presence along highways and infrastructure-led growth corridors.
During the call, management said all restaurants remained operational amid LPG supply disruptions, although fewer than 10 per cent of stores were operating with limited menus.
Westlife Foodworld also highlighted sustainability achievements during the quarter, stating that it was ranked sixth globally in the restaurants and leisure facilities sector in the S&P Global Corporate Sustainability Assessment and included in the Sustainability Yearbook 2026.
