Westlife Foodworld - Strategy Day Insights, Acceleration At Play: ICICI Securities

ICICI Securities Report

Westlife Foodworld Ltd.’s strategy day provided visibility towards long-term growth drivers of store throughput, network expansion and margins. It aspires to increase store throughput to ~Rs 90-100 million (implied store throughput in CY27 is ~Rs 70 million which is slightly higher than current Rs 63 million) though it did not provide a guidance on that unlike last meet.

However, consensus including us would have appreciated more clarity on store throughput growth trajectory given the concerns around the same of other large quick service restaurants.

Overall we like its strategy of-

1. increased focus on meals through leadership in burger, increasing relevance in South through fried chicken and driving coffee adoption (target of 100% penetration in stores),

2. omni channel strategy of increasing consumer experience across touchpoints (100% stores to be experience of the future, focus on own app and drive-thru),

3. accelerated plans of network expansion (40- 55 stores versus 23-24 stores per annum historically) and

4. margin expansion to 18- 20% through product mix improvement, cost savings and operating leverage.

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