Westlife Development Ltd., which runs the McDonald's outlets in western and southern India, expects to maintain same-store sales growth in high single digits for the financial year 2017-18.
The fast food chain reported a same-store sales growth of 8.7 percent in the April-June quarter, the highest in four years, it said in a media statement on Tuesday.
“Last quarter was great also because footfalls into retail locations were good,” Amit Jatia, vice chairman of Westlife Development told BloombergQuint. As a “little bit of tailwinds come in, I am pretty certain that we will edge back. Mid-single digit is where it would be.”
Revenue rose 15 percent to Rs 260 crore on a year-on-year basis and the company expects this run rate to continue for the rest of the financial year, Jatia said. The McDonald's franchisee reported a net profit of Rs 22 lakh compared to a net loss of Rs 2.1 crore in the corresponding quarter last year.
The company plans to spend Rs 100-120 crore on store expansion and renovation of its stores. It is looking to add around 30-40 Mc Café outlets and 25-35 Mc Donald's restaurants in FY18. It currently has 121 Mc Café outlets and 261 Mc Donald's stores in the western and southern India.
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