Westlife FoodWorld, the master franchisee for McDonald’s restaurants in West and South India, reported a strong demand recovery in the first quarter of FY27, with same-store sales growth (SSSG) reaching 4.3%, its highest level in 12 quarters, driven by double-digit growth in guest counts and broad-based momentum across markets and sales channels.
The company posted revenue of Rs 735.6 crore for the quarter ended June 2026, up 12% year-on-year from Rs 657.6 crore a year earlier. EBITDA rose 9% YoY to Rs 92.9 crore, although EBITDA margin contracted 34 basis points to 12.6% due to higher employee costs, inflationary pressures and elevated advertising and promotional spending. Net profit stood at Rs 0.6 crore, compared with Rs 1.2 crore in the corresponding quarter last year.
According to the report, the company’s turnaround strategy in southern markets has begun delivering results, with the region returning to positive same-store sales growth after several quarters of underperformance. Management attributed the recovery to its focus on expanding the restaurant network, strengthening value offerings, improving operational execution and increasing localised brand-building efforts.
The company added five restaurants during the quarter while closing one outlet, taking its total store count to 482 restaurants across 79 cities. It said the relatively modest net addition was due to a temporary supply issue related to electric fryer inventory, which was redirected towards upgrading existing restaurants.
Looking ahead, Westlife reiterated its guidance of over 60 new restaurant openings during FY27 and expects to generate around Rs 3,000 crore in revenue during the year. With operations in the South stabilising, the company plans to allocate a larger share of new restaurant additions to the region.
