McDonald’s operator Westlife Foodworld records 7.3% YoY revenue growth; adds 18 new restaurants
The digital sales contribution rose to 75% of total sales in Q4 FY25.
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Westlife Foodworld Limited, operator of McDonald’s West and South in India, recorded a 7.3% YoY growth in revenue in Q4 FY25 reaching Rs. 6.03 billion. The company added 18 new restaurants in Q4, bringing the total restaurant count to 438 across 69 cities.
It is interesting to note that the digital sales contribution rose to 75% of total sales. In addition to this, the company achieved a Same Store Sales Growth (SSSG) of 0.7%, underpinned by steady guest count. The adjusted SSSG, excluding the leap year impact, was 1.7%. Operating EBITDA increased by 3.2% YoY to Rs. 795 million, with margins at 13.2%.
The fourth quarter saw Westlife Foodworld maintain a stable gross margin of approximately 70%. Restaurant operating margins and Op. EBITDA margin declined by around 30 bps and 50 bps YoY, respectively, due to operating deleverage, partially offset by targeted cost efficiencies and normalization of marketing spends.
Cash PAT stood at Rs. 469 million, representing 7.8% of sales. The company remains focused on reaching its target of 18-20% Operating EBITDA margin by 2027 through enhanced customer experience and operational efficiencies.
On-premise sales grew by 8% YoY, while off-premise sales grew by 5% YoY, with off-premise contribution consistent at 43% of total sales. The company’s value platforms, McSaver Meals and McSavers+ Combos, helped improve affordability metrics and guest count. Digital engagement continued to strengthen, with digital sales contribution rising to 75% of total sales and app downloads reaching over 41 million, accompanied by a 17% YoY increase in Monthly Active Users.
Amit Jatia, Chairperson, Westlife Foodworld, said, “In a quarter marked by evolving market dynamics, our continued growth demonstrates the strength of our long-term strategy. As we advance toward our Vision 2027, we remain focused on creating a seamless omni-channel ecosystem that connects with consumers across multiple touchpoints while maintaining operational excellence. The consistent expansion of our footprint, coupled with our growing digital capabilities, positions us well to capitalize on the significant headroom for growth in the QSR sector.”
The company also introduced innovative menu items, including the Korean Range of Burgers, Sides, and a beverage in March, followed by the MangoBurst range featuring Mango Burst McFlurry with OREO, and Mango Burst McSwirl.
