Westlife Foodworld Reports 3.8% Revenue Growth Amid Challenging Consumer Environment

Westlife Foodworld Limited , the operator of McDonald's restaurants in West and South India, reported a 3.8% year-on-year revenue growth for Q2 FY26, despite facing headwinds in the consumer discretionary spending environment.

Key Financial Highlights

Metric	Q2 FY26	YoY Change
Consolidated Revenue	6.42 billion	+3.8%
Gross Margin	72.4%	All-time high
Restaurant Operating Margin	19.2%	+60 bps
Cash PAT	807.00 million (12.6% of sales)	Includes exceptional items
Adjusted Cash PAT	421.00 million (6.6% of sales)	Excluding exceptional items

Operational Performance

On-premise channel delivered 5% year-on-year growth
Off-premise sales remained stable
Digital sales contributed around 75% of revenue, growing over 300 bps year-on-year
8 new restaurants opened, reaching a total of 450 across 72 cities

Market Challenges and Company Response

Westlife Foodworld faced a challenging quarter, with a 4-6% decline in outside home food consumption frequency observed in August and September in their operating regions. Despite this industry-wide slowdown, the company managed to gain market share with approximately 4% brand growth.

Akshay Jatia, President and CEO, commented on the company's strategic initiatives: "We are setting an ambitious target to double McDelivery sales in the next 2 years. This project has the potential to unlock an incremental 3% to 5% contribution to system-wide same-store-sales growth over the next 2 years."

Innovation and Menu Expansion

The company continues to focus on menu innovation and customer engagement:

Launched Protein Plus Slice, developed in collaboration with the Central Food Technological Research Institute (CFTRI)
Introduced Big Yummy Burgers to address customer feedback
Reinforced value proposition with McSaver's Combo at Rs. 69

Expansion and Future Outlook

Westlife Foodworld remains committed to its expansion plans:

On track to achieve the Vision 2027 target of 580-630 restaurants
Deployed a new AI-powered location intelligence platform for more accurate store performance prediction
Majority of stores opened in the last 6 months are exceeding expectations

Saurabh Kalra, Managing Director, expressed optimism about future growth: "We remain steadfast in our optimism about McDonald's' brand strength and India's long-term consumption growth story."

Leadership Changes

The company announced that CFO Hrushit Shah will be stepping down to be with his family abroad. The management expressed appreciation for his contributions over the past two years.

As Westlife Foodworld navigates through the current challenging environment, it continues to focus on operational excellence, menu innovation, and strategic expansion to drive long-term growth in the Indian QSR market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.45%	+2.95%	-0.83%	-12.35%	-25.26%	+33.39%

Westlife Foodworld , the company that owns and operates McDonald's restaurants in West and South India, has announced a significant change in its leadership team. Hrushit Shah, the Chief Financial Officer (CFO) of Westlife Foodworld and its subsidiary, has resigned from his position, effective November 4, 2025.

Reason for Resignation

According to the company's regulatory filing, Shah's decision to step down is driven by his plans to relocate overseas to be with his family. This move underscores the growing trend of executives prioritizing work-life balance and family considerations in their career decisions.

Transition Period and Responsibilities

In his resignation letter dated July 1, 2025, Shah expressed gratitude for the support he received during his tenure at Westlife Foodworld. Demonstrating his commitment to a smooth transition, he has pledged to complete all statutory duties necessary for the half-year end closure before his departure on November 4, 2025.

Corporate Governance and Disclosure

In compliance with regulatory requirements, Westlife Foodworld has promptly informed the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) about this change in Key Managerial Personnel. This transparency aligns with the company's commitment to good corporate governance practices.

Company's Current Position

While the CFO's resignation is a significant development, it's worth noting Westlife Foodworld's recent financial performance. As of September 30, 2025, the company reported:

Metric	Value	YoY Change
Revenue	₹6.42 billion	+3.8%
Operating EBITDA	₹759 million	-4.1%
Operating EBITDA Margin	11.8%	-
Cash PAT	₹809 million	+78.5%
Cash PAT Margin	12.6%	-

The company also maintains a strong presence with 450 restaurants across 72 cities, adding 8 new outlets in the last quarter.

Looking Ahead

As Westlife Foodworld prepares for this transition in its financial leadership, the company's focus remains on its expansion plans and operational excellence. The search for Shah's successor will be a key priority for the company in the coming months to ensure continuity in its financial strategy and operations.

This development comes at a time when the company is navigating a challenging operating environment, with industry-wide out-of-home food consumption frequency declining. However, Westlife Foodworld's recent financial results demonstrate its resilience and ability to maintain growth despite market headwinds.

The company's board and management team are expected to work closely to ensure a smooth transition as they continue to pursue their Vision 2027 goals, which include expanding to 580-630 restaurants by the end of 2027.