Same-store sales growth
1.5%
+1.5pp YoY
System-level SSSG driven by mid-single-digit guest count growth; positive across all months.
WESTLIFEFOODWORLD
Healthcare
2026-04-??
Westlife Foodworld Ltd — Q4 FY26
Westlife Foodworld reported Q4 FY26 revenue of ₹660 crore, up 9% YoY, with same-store sales growth of 1.5% driven by mid-single-digit guest count growth.
✓ Verified against BSE filing
2-Min Summary
Westlife Foodworld reported Q4 FY26 revenue of ₹660 crore, up 9% YoY, with same-store sales growth of 1.5% driven by mid-single-digit guest count growth. Gross margin remained near historic highs at 68.1%, improving ~60 bps sequentially, aided by supply chain efficiencies and cost initiatives. Management highlighted a return to positive footfall across all months and continued momentum into April, though they caution against calling it a sustained revival. The company opened 21 new stores in Q4 (48 in FY26) and guided for 60+ annual openings going forward. Key risks include commodity inflation (cocoa, coffee) and potential LPG disruptions, though proactive measures have limited impact to <10% of stores on limited menus.
Key Numbers
Guest count growth
Mid-single-digit
Positive YoY
Underlying footfall improved across all regions; south turned marginally positive.
Digital sales contribution
76%
+100bps YoY
Driven by app, McDelivery platform, and self-ordering kiosks; app downloads crossed 52M.
Monthly active users (app)
3.5M
Double-digit YoY
Healthy growth in MAUs; own delivery channel seeing highest growth rates.
Management Guidance
60+ store openings annually
Management guided for 60+ new restaurant openings per year, up from the earlier 45-50 run rate, to reach vision 2027 target of 580-630 stores.
expansionGross margin guidance of ~67%
CFO indicated gross margin expected to be around 67% going forward, factoring in commodity inflation but supported by cost optimization.
marginsPrice increase of 2-4% annually
Management reiterated annual price hikes of 2-4% to manage inflation, though no immediate plans for the next few months.
revenueVision 2027 pre-IndAS margin of 13-15%
Management remains confident in achieving 13-15% pre-IndAS margin by FY27, driven by operating leverage from SSSG and new stores.
marginsKey Risks
Commodity inflation pressure
Cocoa and coffee prices remain elevated; management expects gross margin to moderate to ~67% from current levels.
medium · management_commentaryLPG supply disruptions
LPG crisis impacted ~10% of stores with limited menus; management has taken proactive measures but risk persists.
medium · management_commentaryHappy Meal toy availability
BIS certification issues for toys continue; management expects resolution in 9-12 months, impacting children's meal appeal.
low · analyst_questionSustained revival uncertainty
Management refrained from calling the guest count recovery a sustained revival, citing need for more quarters of consistent momentum.
medium · data_observationNotable Quotes
We are encouraged by the early evidence of this strategy translating into sustained guest count traction.
Value at McDonald's is trusted, predictable and habit forming.
We would like to believe we will actually grow at a similar level in both dine-in and deliveries.