McDonalds franchise owner posts best same store sales growth in three quarters

• Westlife Development, which indirectly owns the McDonald's franchise through Hardcastle Restaurants, reported the best same store sales growth (SSSG) in three quarters.
• While the growth rate is higher, the SSSG is still not at par with the growth during the same quarter, last year.
• The company's profit also more than doubled in Q2 FY20.

Westlife Development which indirectly owns the master franchisee of McDonald’s in West and South India posted a yearly revenue growth of 13.3% at ₹3,965.3 million.

Profit more than doubled to ₹129.1 million compared to a year earlier.

Same store sales growth (SSSG) for Westlife Development continued its upward trajectory, increasing by 7% — which is the best in three quarters — but still significantly lower than the 25% growth clocked the same time last year.

Same store sales means the revenue from outlets that have been open for at least a year.



The company’s profit margins improved by 209 basis points (bps) year-on-year.

Westlife Development’s stock price closed 2% higher before earnings were even disclosed. The stock has been on an upward trend the entire month with shareholders expecting strong earnings on the basis of corporation tax cuts announced by the government.