Westlife Foodworld Q2 Results Review - Performance Better Compared To Peers: Dolat Capital

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.Westlife Foodworld Ltd. delivered healthy revenue growth of 48.5% with strong same-store sales growth growth of 40% in Q2 FY23 on a base of 84%. On three-year compound annual growth rate basis, the company reported 13% revenue CAGR versus 9% reported by Jubilant FoodWorks Ltd. Westlife Foodworld opened six new stores and seven new Mc Cafe’s during Q2 to take the total store count to 337. The company plans improve the store addition pace in the ensuing quarters. It would add 35-40 stores in FY23E. Despite high inflation gross margin expanded by 70 bps led by improved product mix. Further, 20/420 bps decline in employee/other expenses helped expand Ebitda margin by 520 bps. We believe that the margins would improve gradually from current levels.We strongly believe that the domestic quick service restaurant market has ample headroom for growth given its underpenetrated nature versus other Asia Pacific nations like China. Given that Westlife Foodworld has an attractive menu offerings targeted towards millennials and strong brand extensions like McCafe, we believe that it would hold an upper hand against the competition..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Westlife Foodworld Q2 Results Review - Performance Better Compared To Peers: Dolat Capital

The company witnessed a gross margin expansion of 70 bps given price hikes in previous quarters and improved revenue mix.

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Westlife Foodworld Q2 Results Review - Performance Better Compared To Peers: Dolat Capital

The company witnessed a gross margin expansion of 70 bps given price hikes in previous quarters and improved revenue mix.

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