Westlife Foodworld - Game On With Vision 2027: Prabhudas Lilladher

Prabhudas Lilladher Report

We attended Westlife Foodworld Ltd.’s strategy day which outlined Vision 2027 and progress on Vision 2022. The company has fulfilled the earlier target on most fronts, despite Covid impact for two years.

By end of CY27, Westlife Foodworld has indicated 580-630 stores, sales of 40-45 billion, 15-17% Pre India Accounting Standard margins, 25% return on equity, 40% return on capital employed, Rs 14 billion capex and dividend payout of 15-25%.

We note that most of the guidance numbers are in line with our estimates. We believe Westlife Foodworld is well placed to capitalise on growth opportunity in the quick service restaurant space given-

1. strong menu innovations like gourmet burgers, fried chicken, McCafe,

2. strong store format with experience of the future stores,

3. rising salience of McDelivery and digital sales,

4. more focus on South with 60% of incremental stores given higher average-unit volume and chicken sales and

5. accelerated store expansion plans in coming years.

Westlife Foodworld guidance of 5% royalty till FY26 and gradual increase thereafter is positive.

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