McDonald's India franchisee Westlife posts profit slump on frail demand (updated)

Westlife Foodworld

08/05/2024 10:51

(Adds details, background)
       BENGALURU, May 8 (Reuters) - Westlife Foodworld
 WEST.NS , the operator of McDonald's restaurants in west and
south India, reported a 96% slide in fourth-quarter profit on
Wednesday as inflation-weary consumers cut back on dining out
and ordering in despite the fast-food chain's attempts to lure
them with discounted prices.
    The franchisee said consolidated profit after tax fell to
7.6 million rupees ($91,012.8) for the January-March quarter
from 200.9 million rupees a year earlier.
    India's quick-service restaurants have struggled to attract
customers in the face of sticky inflation and increasing
competition from local players.
        Affordable value packs have also failed to draw
customers' attention as the pace of India's food inflation has
remained 
    high
     so far this year.
  
        Westlife's total expenses rose nearly 6%, compared with
a 1.6% growth in revenue during the quarter.
  
        Rivals KFC-operator Devyani International  DEVY.NS ,
Pizza Hut-operator Sapphire Foods  SAPI.NS  and Domino's
India-franchisee Jubilant FoodWorks  JUBI.NS  are yet to report
results.
  
        U.S.-based McDonald's  MCD.N  
    missed
     quarterly profit estimates as customers cut back on
spending and international sales dampened.
  
    Shares of the company fell as much as 7.7% after the
results.

($1 = 83.5047 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Sohini Goswami)
 ((AshnaTeresa.Britto@thomsonreuters.com;))