Westlife Foodworld Ltd, a McDonald’s India franchisee, announced a 74% increase in third-quarter earnings on Tuesday, as more customers dined at its locations.
The firm, which has the McDonald’s Corp licence in west and south India, recorded a consolidated net profit after tax of 363.5 million rupees ($4.43 million) for the December quarter, up from 208.2 million rupees a year earlier.
Westlife’s on-premise and off-premise businesses, including internet orders, increased by 42% and 12%, respectively.
According to researchers, demand for quick service restaurants (QSR) at physical locations and for takeouts increased throughout the holiday season, particularly in October and December.
Westlife shares, which jumped 40% in 2022, were up almost 6% on Tuesday.
The operating margin increased to 23.8% for the quarter, despite growing costs of 26%.
Westlife said it established six additional restaurants in the third quarter and aims to build 35 to 40 more this fiscal year.
“Menu innovations, omnichannel presence, and cost leadership will continue to be the key growth drivers for us,” the company said in a statement.
Total sales for the quarter increased 28% to 6.1 billion rupees.
Jubilant Foodworks, which operates the Domino’s Pizza restaurant brand in India, reported a 10% increase in earnings in the previous quarter, owing to greater dine-in demand. On Wednesday, the corporation will disclose third-quarter earnings.