McDonald’s main franchisee Westlife’s net down 64% in Q3

Westlife Development, which owns Hardcastle Restaurants -- the master franchisee of McDonald's for west and south India, on Thursday reported a 64 per cent decline in consolidated net profit at Rs 8.19 crore for the December quarter.

The company had posted a net profit of Rs 22.72 crore in the October-December period a year ago, Westlife Development Ltd said in a BSE filing.

Its total revenue was down 24.9 per cent to Rs 325.06 crore as against Rs 432.93 crore in the corresponding quarter of 2019-20.

Operating costs and expenses were at Rs 274.96 crore in Q3 FY21 as against Rs 357.15 crore earlier, down 23 per cent.

"The company's revenues for Q3FY21 zoomed to 85-90 per cent of pre-COVID levels with December revenues almost back to pre-COVID levels," the company said in a post-earnings statement.

In the second half of the quarter, almost all its highway stores exceeded pre-COVID sales, with the trend being similar for its stores in smaller cities.

"In fact, almost all of the Company's restaurants marched close to full recovery except those being close to colleges and some mall stores where movie theatres are key generators.

"This was despite significant regulatory restrictions including night curfews and 50 per cent capacity limits in many of the Company's key markets," it said.

The company also got back on the growth path and added three new McDonald's restaurants and three McCafes to its portfolio during the quarter, it added.

Shares of Westlife Development Ltd on Thursday settled at Rs 456.40 on BSE, down 3.42 per cent.

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