Westlife Foodworld delivered a resilient performance in Q4 FY25 with revenue growth of 7.3% YoY, reaching Rs. 6.03 billion. 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. Our sustainability achievements further reinforce our commitment to responsible growth as we continue building a business that delivers value to all stakeholders in the decades to come.”

Westlife continued to expand its presence with 18 new restaurants in the quarter, bringing the total restaurant count to 438 across 69 cities as of March 31, 2025.

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.

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The company achieved Q3 sales of Rs. 6.54 billion, marking a year-on-year (YoY) growth of 9%. Same-store Sales Growth (SSSG) improved to 2.8% YoY, a significant recovery compared to -6.5% in Q2 FY25. This growth was driven by gradually improving footfalls and a stable average check. The momentum was broad-based, with both On-Premise and Off-Premise businesses growing at 9% YoY. Off-premise channels, which contributed 42% to total sales, remained stable and aligned with the past two-year average.

The quarter saw strong progress in several key areas. Cash PAT stood at Rs. 520 million, representing 8% of sales. Digital channels contributed over 70% of total sales during the quarter, fuelled by increasing adoption of Self-Ordering Kiosks (SOK) and a growing base of My M Rewards Loyalty program enrolments. The cumulative app downloads exceeded 39 million, with a 13% YoY increase in monthly active users.

The Everyday McSaver Meals platform and the newly launched McSaver Combos programs continued to enhance affordability scores and drove foot traffic, reinforcing the brand’s commitment to value. Meanwhile, the #ShordaarCrunch campaign for McCrispy burgers resonated strongly with customers, driving premiumization and elevating brand engagement. The company further expanded its product portfolio with the launch of Chicken Surprise, a new entry-level burger that bolstered its Chicken platform. 

Westlife Foodworld also made strong strides in restaurant expansion, adding 15 restaurants in Q3 FY25, taking its total presence to 421 restaurants across 67 cities (as of December 2024). With a sharp focus on South India, smaller towns, and Drive-Thrus, the company is poised to open 45-50 stores annually, aligning with its vision of 580-630 restaurants by 2027.

Despite soft consumption trends and inflationary pressures on key inputs such as oil, coffee, and cocoa, Westlife Foodworld demonstrated a commitment to operational efficiency. Gross margins improved sequentially to 70.1%, supported by a portfolio-level price hike of about 50 basis points. The company remains focused on maintaining stable gross margins at ~70% levels in the near term. However, Restaurant Operating Margins and Operating EBITDA margin were lower by around 200 basis points YoY due to operating deleverage and higher advertising and promotional spends. Profitability is expected to improve with higher volumes, and the company remains steadfast in its goal of delivering 18-20% Operating EBITDA margin by 2027.

Amit Jatia, Chairperson, Westlife Foodworld, said “Our performance in Q3 FY25 underscores the effectiveness of our strategy and our agility in navigating a challenging market landscape. With the improvement in Same Store Sales Growth and the success of one of our biggest initiatives, like the McCrispy campaign, we have strengthened our foundation for future growth. As we continue to expand our network and innovate our offerings, we are poised to achieve sustainable growth through strategic execution and delivering exceptional customer experiences.”

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