McDonald's India franchisee Westlife posts Q1 profit drop on higher costs, weak demand (updated)

Westlife Foodworld

25/07/2024 11:11

(Recasts to add share movement and details)
       BENGALURU, July 25 (Reuters) - Westlife Foodworld
 WEST.NS , the operator of McDonald's  MCD.N  restaurants in
west and south India, reported a plunge in first-quarter profit
on Thursday amid frail demand and higher expenses, sending its
shares down as much as 4%. 
    Consolidated profit after tax fell 89% to 32.5 million
rupees ($388,412.17) for the three months ended June 30.   
    India's quick-service-restaurant (QSR) brands continued to
grapple with sluggish demand in the quarter despite the T20
Cricket World Cup and a school holiday period, as cash-strapped
consumers cut back on dining out. The decline in Westlife's
dine-in sales overshadowed higher deliveries. 
        Westlife's same-store sales fell 6.7% during the
quarter. Its expenses swelled around 7% to 6.17 billion rupees,
led by a surge in "royalty costs", the company said in a
statement without giving further details.
  
        Revenue from operations was little changed at 6.16
billion rupees. 
  
        "The quarter's results reflect the ongoing challenges in
the operating environment," said Chairperson Amit Jatia.
  
        Westlife's shares ended 2.3% lower, logging its worst
day in a month.
  
        
  

($1 = 83.6740 Indian rupees)

 (Reporting by Manvi Pant in Bengaluru; Editing by Eileen
Soreng)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))