Wednesday, March 11
Shares of Westlife Foodworld were trading around Rs 465.80, down 1.68% in early trade on Wednesday on the National Stock Exchange of India.
The stock is in focus after brokerage Goldman Sachs maintained a ‘Neutral’ rating on Westlife Foodworld while assessing the outlook for India’s quick-service restaurant (QSR) sector.
Goldman Sachs view on QSR demand
Goldman Sachs noted that same-store sales growth (SSSG) momentum is gradually improving across the sector. The brokerage expects fourth-quarter SSSSG for QSR players to converge closer to Domino’s, indicating a gradual recovery in consumer demand.
The brokerage also highlighted that SSSSG momentum is improving for KFC franchisees and Westlife, suggesting improving traction in restaurant sales.
Value-driven offers supporting recovery
Promotional pricing and value offers are playing an important role in bringing customers back to dine-in channels. Goldman Sachs noted that such strategies are helping restaurant chains increase transaction volumes.
For instance, the KFC Krisper meal priced at Rs 999 has reportedly helped boost customer traffic and transaction counts across the sector.
Seasonal factors supporting sales
The brokerage also pointed out that the shift in Ramzan timing this year could create a favourable base for restaurant sales in March.
However, Goldman Sachs cautioned that geopolitical disruptions remain a risk for the sector, as any uncertainty in the macro environment could impact discretionary consumer spending.
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