Westlife Foodworld Limited reported its Q3 FY26 results, showing consolidated revenue growth of 2.6% YoY to INR 6.7 billion. Management emphasized a strategic focus on guest count momentum, driven by a new consumer value proposition built on five core pillars: value, experience, relevance, profitability, and consistency. Despite a 3% negative same-store sales growth (SSSG) for the quarter, underlying guest counts stabilized, with a positive trend emerging in January.
Q3 FY26 Performance Highlights
Westlife Foodworld Limited announced results for the third quarter ending December 31, 2025. Management noted that efforts were focused on strengthening guest count momentum through a sharpened consumer value proposition. For the quarter, consolidated revenue reached INR 6.7 billion, marking a 2.6% year-on-year (YoY) growth. For the 9-month period, revenue grew 4.4% YoY.
Akshay Jatia, President & CEO, highlighted that Same-Store Sales Growth (SSSG) was negative at 3% during the quarter, though underlying guest counts remained broadly stable YoY. Encouraging traction was seen starting in November, with both November and December delivering flat to positive comparable guest growth. This momentum extended into January, which reported positive SSSG supported by healthy mid-single-digit guest count growth.
Strategic Pillars for Growth
The management detailed a refined strategy centered on driving guest counts through an unwavering promise: accessible everyday value combined with the iconic McDonald’s experience. This framework rests on five core pillars:
- Value: Predictable and trusted everyday value, not sporadic discounting.
- Experience: Speed, accuracy, and seamless delivery of favorite food.
- Relevance: Remaining culturally modern while staying true to brand codes.
- Profitability: Guest count growth must be volume-led while remaining margin protected.
- Consistency: Non-negotiable consistency in the McDonald’s experience daily.
Financial and Operational Metrics
Saurabh Kalra, CFO, elaborated on the financial execution:
- The everyday value meal price at INR 99, launched in the West in December, is showing healthy momentum in dine-in footfalls.
- On-premise business grew 6% YoY, while the McDelivery channel continues to emerge as a robust growth engine.
- Like-for-like gross margin remained broadly stable sequentially, noting an optical impact of 400 to 500 basis points due to the regrouping of processing charges.
- Restaurant operating margin improved by 150 basis points YoY, and operating EBITDA margin improved by 70 basis points YoY.
- Cash PAT for the quarter was INR 583 million, representing 8.7% of sales.
- Digital sales remained stable at approximately 74% to 75% of the business, with cumulative app downloads reaching nearly 50 million.
Network Expansion and Innovation
The company remains disciplined on expansion, opening 10 new restaurants this quarter, taking the total count to 458 across 73 cities. Management reaffirmed the target to reach 580 to 630 restaurants by 2027.
Regarding product innovation, the Protein Slice was highlighted as a successful global first introduction aimed at expanding the consideration set. Furthermore, management addressed the INR 99 value proposition, confirming it is structured to be non-dilutive to gross margins through optimizing product mix and leveraging supply chain efficiencies.
Regional Performance
In response to questions about regional divergence, management acknowledged that the South has been slightly underperforming compared to the traditionally stronger West. However, they confirmed that the strategies and playbook developed in the West are being deployed in the South, leading to momentum convergence expected to narrow the gap in coming quarters.
Regarding delivery, there were noted differences in performance across the two main aggregators, with efforts underway to restore partnership sustainability in the less performing channel.
Source: BSE
