Why Did McDonald's India Operator Westlife Foodworld Experience a 78% Drop in Q4 Profit?
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Synopsis
Westlife Foodworld Limited, which operates McDonald's in India, has reported alarming financial results for Q4 FY25, with net profit plunging by 78%. This sharp decline raises questions about the future of fast-food operations in the region.
Key Takeaways
- Net profit fell by over 78% in Q4 FY25.
- Total revenue decreased by 7.74% quarter-on-quarter.
- Profit before tax dropped nearly 79.5%.
- Full-year revenue saw a growth of 4.37%.
- Stock performance has been stable but shows a year-long decline.
Mumbai, May 14 (NationPress) - Westlife Foodworld Limited, the franchisee managing McDonald’s outlets in the Western and Southern regions of India, announced a significant decline in both its net profit and revenue for the fourth quarter (Q4) of FY25 compared to the previous quarter.
The company's net profit plummeted by more than 78%, landing at Rs 1.52 crore in Q4, down from Rs 7.01 crore in Q3 FY25, as per its disclosure to the stock exchange.
Additionally, total revenue from operations fell by 7.74%, decreasing to Rs 603.14 crore in Q4 from Rs 653.71 crore in Q3 FY25.
In the same vein, the company’s total income was reported at Rs 613.09 crore, reflecting a 6.63% decrease from Rs 656.65 crore in the preceding quarter.
Profit before tax (PBT) also took a sharp downturn, reducing to Rs 1.33 crore in Q4 from Rs 6.48 crore in Q3, which is a staggering 79.5% decline.
Despite these quarterly setbacks, Westlife Foodworld recorded a growth in total revenue from operations for the entire financial year (FY25), reaching Rs 2,515.66 crore, a 4.37% increase from Rs 2,410.27 crore in FY24.
Shares of Westlife Foodworld Limited ended the trading day nearly unchanged at Rs 700, with a slight gain of Rs 2.85 or 0.41% on the National Stock Exchange (NSE).
In the past five days, the stock has shown minimal movement, gaining just 1% or Rs 6.90. Over the last month, shares have decreased by Rs 9.35, or 1.32%.
Over the last six months, the stock has dropped by Rs 5.90 or 0.84%. Year-to-date (YTD), it has fallen by Rs 87.10 or 11.07%.
Looking back over the past year, Westlife Foodworld's stock has decreased by Rs 130.05 or 15.67%.
Westlife Foodworld operates McDonald's restaurants via its subsidiary Hardcastle Restaurants Private Limited (HRPL), under a master franchise agreement with McDonald’s Corporation, USA.
HRPL holds exclusive rights to own and operate McDonald's locations in the Western and Southern regions of India.
Point of View
I emphasize the importance of transparency in financial reporting. Westlife Foodworld’s recent downturn shows the volatility in the restaurant sector, especially in a competitive market like India. It’s crucial for stakeholders to understand these dynamics as they make informed decisions.
NationPress
08/06/2025
Frequently Asked Questions
What caused the decline in Westlife Foodworld's profit?
The decline in profit and revenue can be attributed to various factors, including increased operational costs and market competition.
How did Westlife Foodworld perform in FY25 overall?
Despite the Q4 downturn, Westlife Foodworld achieved a 4.37% increase in overall revenue for FY25 compared to FY24.
What is the current stock performance of Westlife Foodworld?
Westlife Foodworld's shares closed at Rs 700, with slight fluctuations observed over the past month.
Who is the parent company of Westlife Foodworld?
Westlife Foodworld operates under a master franchise agreement with McDonald's Corporation, USA.
What regions does Westlife Foodworld serve?
Westlife Foodworld exclusively operates McDonald's outlets in the Western and Southern regions of India.
