Westlife Foodworld Limited , the company behind McDonald's restaurants in West and South India, has reported a steady performance for the first quarter of fiscal year 2026, navigating through a soft business environment while achieving notable improvements in key financial metrics.

Financial Highlights

The company posted consolidated revenue of Rs. 6.60 billion for Q1 FY26, reflecting a 7% year-over-year growth. Westlife Foodworld achieved a historic high gross margin of 71.60%, up 160 basis points sequentially, driven by significant enhancements in supply chain efficiencies.

Operating EBITDA reached Rs. 855.00 million, up 7% from the previous year, while cash profit after tax stood at Rs. 474.00 million, contributing to 7.20% of sales.

Same-Store Sales and Digital Business

Same-store sales growth stood at 0.50% with stable guest count and average check. The company's digital business continues to contribute significantly, accounting for around 75% of total sales. Westlife's digital platforms, including self-ordering kiosks, the McDelivery app, and the My McDonald's reward program, have seen strong traction with over 44 million cumulative downloads and more than 3 million monthly active users.

Network Expansion and Restaurant Format

During the quarter, Westlife Foodworld opened 9 new restaurants, bringing its total store count to 444 across 71 cities. Nearly all restaurants now feature McCafé and Experience of the Future formats, with 24% offering drive-thru services.

Strategic Initiatives

The company is strengthening its regional leadership team in South India to improve performance in that market, where growth has been slower compared to western regions. Westlife has also established a new vertical focused on long-term initiatives, termed as Horizon 2 projects, with a strategic outlook extending beyond 2027.

Dividend Announcement

The Board of Directors has approved an interim dividend of Rs. 0.75 per equity share, demonstrating the company's commitment to shareholder value creation.

Management Commentary

Akshay Jatia, President and CEO of Westlife Foodworld, commented on the results: "We started this financial year on a steady note, navigating a persistent soft business environment. However, we remain optimistic that eating out frequency will gradually improve supported by lower consumer level inflation."

Saurabh Kalra, Managing Director, added: "Our growth factors are intact. We are fundamentally re-evaluating what truly matters to the customers. While the business environment remains soft and the market is largely drawn towards affordability, we are instead focusing on consumers and redefining what value truly means to them."

Outlook

The management remains optimistic about progressively improving momentum during the year. The company maintains its Vision 2027 target of 580-630 restaurants and expects gradual improvement in performance through the year despite the current soft business environment.

Upcoming Investor Event

Westlife Foodworld has announced its participation in the Emkay Confluence 2025 event, scheduled for August 14, 2025. This in-person group meeting provides an opportunity for investors and analysts to engage with the company's management and gain further insights into its performance and strategies.

As Westlife Foodworld continues to navigate the challenging market conditions, its focus on operational excellence, strategic expansion, and customer-centric initiatives positions the company to capitalize on the gradual recovery in consumer spending and dining-out trends.

Westlife Foodworld , which operates McDonald's India (West & South), has launched a groundbreaking 'Protein Plus Range' featuring a first-of-its-kind 100% vegetarian, plant-based 'Protein Slice'. This innovative addition allows customers to boost the protein content of their favorite burgers, marking a significant step in McDonald's journey towards mindful indulgence.

Customizable Protein Boost

The new Protein Slice adds 5 grams of protein to any burger, giving customers unprecedented control over their protein intake. Diners can add up to three Protein Plus slices to their burgers, significantly enhancing the nutritional profile of their meals. For instance, with the addition of the Protein Slice:

Collaboration with CSIR-CFTRI

The Protein Plus Slice was developed in partnership with the prestigious CSIR-Central Food Technological Research Institute (CFTRI), under the Ministry of Science & Technology, Government of India. This collaboration marks McDonald's India's second strategic partnership with CSIR-CFTRI, following the successful launch of the Multi-Millet Bun last year.

100% Vegetarian and Inclusive

Made from soy and pea ingredients, the Protein Plus Slice is 100% vegetarian and contains no artificial colors, flavors, or onion and garlic. This makes it suitable for a wide range of dietary preferences, aligning with McDonald's commitment to catering to diverse customer needs.

Expanding Menu Options

The Protein Plus Range includes both vegetarian and non-vegetarian meal options:

• Vegetarian Protein Plus Meal: A burger enhanced with the Protein Slice, paired with a protein-rich corn cup and Coke Zero.
• Non-vegetarian Protein Plus Meal: McCrispy Chicken with Protein Slice, 4-piece Chicken McNuggets, and Coke Zero.

Commitment to Quality and Nutrition

Akshay Jatia, Chief Executive Officer of Westlife Foodworld, emphasized the company's commitment to their 'Real Food, Real Good' philosophy. He stated, "The Protein Plus Range allows them to enjoy their favourite McDonald's burgers without compromising on their protein needs or the taste. It also reflects our ongoing commitment to our 'Real Food, Real Good' philosophy, bringing together flavour, nutrition, and food science."

Availability and Accessibility

The new Protein Plus range is now available across McDonald's 444 restaurants in West and South India. Customers can enjoy these protein-enhanced options whether dining in, using the Drive-Thru, or ordering from home through the McDelivery app.

This launch underscores McDonald's India's dedication to innovation, nutrition, and meeting evolving customer preferences in the quick-service restaurant industry.