McDonald’s franchisee Westlife posts strong Q1 with 12 per cent growth

New Delhi: Westlife Foodworld has found the right recipe for growth. The operator of McDonald’s restaurants across West and South India reported double-digit revenue growth in the first quarter of FY27, supported by strong customer demand, value-focused offerings and rising digital engagement.

For the quarter ended 30 June 2026, Westlife Foodworld Limited reported revenue of Rs 735.64 crore, up 11.9 per cent from Rs 657.64 crore in the corresponding quarter last year.

The company also recorded a sharp recovery in same-store sales growth, which stood at 4.3 per cent, reversing declines of 2.8 per cent in the second quarter of FY26 and 3.2 per cent in the third quarter. It said trading momentum strengthened further during May and June, with both months delivering mid-single-digit same-store sales growth.

Operating EBITDA increased 10.7 per cent year on year to Rs 94.55 crore, compared with Rs 85.37 crore a year earlier. The EBITDA margin remained stable at 12.9 per cent despite continued inflation in food ingredients, packaging and fuel costs.

Cash profit after tax rose 9 per cent to Rs 51.68 crore, representing 7.0 per cent of total sales. Reported profit after tax stood at Rs 0.59 crore, while pre-Ind AS 116 profit after tax came in at Rs 11.65 crore.

Adjusted gross margin for the quarter stood at 67.6 per cent, while restaurant operating margin was 18.6 per cent, translating into Rs 137.19 crore.

The company’s omni-channel strategy continued to deliver growth across both dine-in and digital channels. On-premise dining and takeaway accounted for 59 per cent of total system sales and grew 12 per cent year on year, while delivery and other off-premise channels contributed the remaining 41 per cent.

Digital platforms strengthened their contribution during the quarter, accounting for 74 per cent of total system sales, an increase of 150 basis points from a year earlier. The company’s digital ecosystem crossed 55 million cumulative app downloads and now has more than 3.7 million monthly active users.

Westlife attributed the strong customer response to its ‘Everyday Value at Rs 99’ platform, which helped drive double-digit growth in guest footfalls. Seasonal promotions, including the ‘Mango Burst Range’ and the ‘Let’s Family at McD’ campaign celebrating McDonald’s 30th anniversary in India, also supported customer engagement.

Expansion remained firmly on track during the quarter. Through its subsidiary Hardcastle Restaurants Pvt. Ltd., the company opened five new restaurants and closed one, taking its network to 482 restaurants across 79 cities, 10 states and one Union Territory. The business now serves more than 200 million customers annually and employs over 10,000 people. Westlife reiterated its long-term target of operating 580 to 630 restaurants by December 2027, with plans to open more than 60 outlets during FY27.

The company also strengthened its board with the appointment of Dr Deepa Vidyadhar Bhajekar as an additional director and non-executive independent director for a five-year term from 31 July 2026 to 30 July 2031. A food microbiology expert, she is the founder of d technology and former founder of MicroChem Silliker India. She has also served on the Central Advisory Committee of the Food Safety and Standards Authority of India and was the founding president of the India chapter of AOAC International.

With value-led pricing, expanding digital adoption and an accelerating restaurant network, Westlife Foodworld has begun FY27 on a strong note, signalling continued confidence in consumer demand and its long-term expansion strategy.