1. Opening Hook
When your Protein Slice sells out in a day but your same-store sales shrink faster than a soggy bun, you know it’s“one of those quarters.”Westlife Foodworld (aka McDonald’s West & South India) juggled soft demand, burger science, and AI-powered fries this quarter—because who needs simplicity when you can have a machine learning drive-thru?
In the words of theBhagavad Gita: “Action is greater than inaction.” Clearly, management took that to heart—with AI cameras in kitchens and burgers that double as protein supplements. Stick around—this gets juicier than a McSpicy Deluxe. 🍔
2. At a Glance
- Revenue up 3.8%– Growth slower than ketchup drip, but at least it’s red.
- Gross margin 72.4%– All-time high; CFO swears it’s not sorcery, just supply chain yoga.
- Operating margin 19.2%– Up 60 bps; fries doing heavy lifting.
- Cash PAT ₹807M (12.6% of sales)– Includes a Mumbai property jackpot.
- Adjusted Cash PAT ₹421M– The “real burger,” minus one-time toppings.
- Digital sales 75% of revenue– Clearly, Indians prefer tapping screens to standing in queues.
- Stock reaction:Traders heard “AI + burgers,” and didn’t need further seasoning.
3. Management’s Key Commentary
“Discretionary spend and eating-out frequency were soft, but we grew 4%.”(Translation: Everyone’s broke, but at least they still like fries.)
“Gross margin hit an all-time high at 72.4%.”(Translation: We’ve found religion in cost-cutting. 🙏)
“Digital sales now form 75% of revenue.”(Translation: Humans are overrated. The apps feed us now.)
“Protein Plus Slice sold out in one day.”(Translation: India’s gym bros just met their burger soulmate.)
“We target serving every drive-thru order within 120 seconds.”(Translation: Blink and miss your fries—speed thrills, calories kill.)
“We’ll double McDelivery sales in two years.”(Translation: Swiggy, sleep with one eye open.)
“We’ll reach 580-630 stores by 2027; long-term goal is 1,000.”(Translation: One McDonald’s
per mood swing.)😏
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Change | Management Spin |
|---|---|---|---|
| Revenue | ₹6.42B | +3.8% | “Resilient” in CEO-speak. |
| Gross Margin | 72.4% | +180 bps | CFO’s farewell gift. |
| Restaurant Margin | 19.2% | +60 bps | Fries saved the day. |
| Cash PAT | ₹807M | +— | Thanks, real estate windfall. |
| Adj. PAT | ₹421M | – | When you remove the glitter. |
| Digital Contribution | 75% | +300 bps | App > appetite. |
| Store Count | 450 | +8 stores | Target 580–630 by FY27. |
Takeaway:Margins bulked up like the new Protein Slice, but topline appetite is weak. Cost control remains the secret sauce.
5. Analyst Questions
Q:“How’s demand—flat, fried, or burnt?”A:“Industry saw 4–6% decline; we grew 4%.”(Translation: We lost less than others.)
Q:“Why flat off-premise growth when Swiggy booms?”A:“We don’t discount like maniacs.”(Translation: Integrity over impulse offers.)
Q:“How’s South India doing?”A:“Bangalore’s a dampener.”(Translation: Even techies can’t afford burgers.)
Q:“McDelivery app investments?”A:“We’re halfway there.”(Translation: Pray the fries arrive hot.)
6. Guidance & Outlook
Management remainscautiously optimistic, a
