Goldman Sachs maintains its Buy rating on Westlife Foodworld with a target price of ₹1,045, highlighting key takeaways from India Corporate Day 2024. The brokerage noted a positive impact from menu interventions and expects same-store sales growth (SSSG) to recover in the second half of FY25, benefiting from a soft base in 2HFY24.
Westlife’s new initiatives include the McCrispy platform launch in September 2024, bolstering its value offerings. The company is confident of outperforming peers as gross margin pressure seen in Q2 is temporary. Goldman expects operating leverage to improve as SSSG trends turn mid-single digit positive. This optimism is supported by management’s confidence in delivering stronger growth through strategic menu expansion.
Recently, Westlife expanded its McDonald’s presence across India, with aggressive store openings in Tier 2 and Tier 3 cities, aligning with its long-term growth strategy. This geographical push complements its menu diversification and operational efficiency plans.
