Westlife Development posts 1.7% same store sales, first positive growth since last two years

MUMBAI: Westlife Development Ltd (WDL), which runs the master franchisee for fast food chain McDonald's in south and west India, posted a 21% increase in revenues to Rs 226 crore during July - September quarter helped by new stores and menu innovations.

Its same-store sales – which consider sales only at those stores which were operating during both comparable periods – grew 1.7% in a tough consumer market, breaking the deadlock of negative comparable sales growth for the last eight quarters.

"During the quarter we advanced on some key elements of our long term strategy, impactful brand marketing coupled with a range of organic initiatives; delivered through disciplined execution, while continuing to reduce expenses and expand operating margins which has contributed to our growth," Vice Chairman Amit Jatia said.

Gross margin expanded nearly 580 basis points in the second quarter.

During the last two years, eating out market was stagnant in India especially in western fast food that still account 1% of the total market. Experts feel that the year has been the most challenging year for the industry due to muted consumer sentiment, footfalls being under pressure and no growth in eating out frequency.