Mar'25 View on Westlife Foodworld Ltd

Westlife Development Limited (WDL) focuses on establishing and operating McDonald’s restaurants across West and South India, through its wholly owned subsidiary Hardcastle Restaurants Pvt Ltd (HRPL). Today, It manages 319 McDonalds restaurants and 223 McCafé outlets in West and South India in easily accessible and popular locations like malls, high-streets, shopping complexes and residential areas’ after outlet presence. It employees close to 10,000 employees After making high above 1,000 the stock is consolidating and is now lying at 700 and will in all ikely hood touch 800 on back of following inputs • Management has retained its guidance to add 45-50 new stores in FY25E. • Growth gradually recovering, even as environment remains challenging. • Gross Margins expanded 40 bps qoq to 70.1% (in line). • Both on-premise/off-premise channels grew 9%/9% yoy • Westlife’s revenue/store/SSS growth of 9%/11%/2.8% came in line. • We believe that there is room for cost efficiency- led margin improvement • We expect earnings to grow by 420.7% in FY26E & grow by 68.9% in FY27E. • Stock is currently trading at valuation of 106.9x P/E FY27E EPS. • We value Westlife using Discounted Cash Flow (DCF) methodology.