Shares of Westlife Foodworld Ltd. rose the most in more than two months, extending gains after the operator of McDonald's chain unveiled its five-year expansion plans.
Westlife Foodworld is looking for an almost threefold jump in sales up to Rs 4,500 crore by 2027 on the back of network expansion and an omnichannel approach, PTI reported citing a company statement on Dec. 2.
The company plans to add 300 McDonald's restaurants in the next five years, with 60% of the new stores likely to be located in the southern region and the rest in the western zone, the company said in its 'Vision 2027' statement.
The store additions will likely double the company's sales to Rs 4,000–4,500 crore in the next five years, Akshay Jatia, Westlife Foodworld executive director, said.
The company, which operates 337 McDonald's restaurants through its subsidiary Hardcastle Restaurants as of Sept. 30, has already commenced work on the next 200 stores.
Shares of Westlife Foodworld rose as much as 10.22%, the most since Sept. 26, before losing some of the gains to trade 7.16% higher as of 11:56 a.m. compared to a 0.53% decline in the benchmark Nifty 50. The company was trading at 9.7 times its 30-day average. The stock ended 2.82% higher on Monday, the has risen more than 13% in the last two days.
About 90% of analysts have changed their price targets on the stock over the last month. Of the 19 analysts tracking the company, 17 maintain a 'buy' rating and two maintain a 'hold' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 7.7%.
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