Shares of Westlife Foodworld will be in focus today, May 8 after the company announced January to March quarter results for the fiscal year 2025-26.
The McDonald's operator reported a net profit jumped 60% to Rs 2.4 crore in the fourth quarter of FY26, from Rs 1.5 crore in the corresponding period last year, the company informed in an exchange filing on Thursday, May 7.
Revenue rose 8.7% to Rs 655 crore the quarter under review from Rs 603 crore in the same quarter previous year.
In Q4FY26, Westlife Foodworld's earnings before interest, taxes, depreciation, and amortisation (EBITDA) was up 13% to Rs 86.9 crore against Rs 76.9 crore posted in the January to March quarter of fiscal year 2024-25.
Brokerages shared mixed review on Westlife Foodworld's Q4 show, with Macquarie retained an 'Outperform' rating and a target price of Rs 515, an upside of 2.8% from last closing price of Rs 500.95. The brokerage highlighted healthy demand trends, improving guest counts, stronger dine-in traction and a recovery in the South India market, while flagged concerns over demand amid rising inflation.
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Meanwhile, Bernstein maintained 'Underperform' rating at a target price of Rs 500, reflecting on the McDonald's linked firm's focus on guest count growth and value offerings is positive for the long term. However, company may struggle to achieve CY27 guidance, it said..
Macquarie on Westlifefood
- Maintain 'Outperform' with target price of Rs 515
- In-line Q4; demand healthy in Q1FY27 so far
- Liked mid-single-digit guest count growth and recovery in South India market to slightly positive same-store sales growth
- See healthy traction in the dine-in business, which grew ahead of delivery.
- Worry about demand strength sustaining in this period of rising inflation and the potential margin drag from increased FY27 store additions to 60+ stores
Bernstein on Westlifefood
Maintain 'Underperform' with target of Rs 500
- Slow and steady in a long race
- Appreciate focus on guest count improvement, with everyday value lever as key growth
- Positive for the long term, however is likely to negatively weigh on the margin profile
- Expect Westlife will struggle to meet the CY27 guidance
- Remain unconvinced about material improvement in Westife prospects without a boost in the broader demand situation
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