Prabhudas Lilladher's research report on Westlife Foodworld
WFL outlook remains cautiously optimistic in the near to medium term given 1) Visible green shoots in south market and decline in inflation 2) Stabilizing operating metrics with TTM Average sales/store increasing by 8.3% QoQ while declining by 3.2% YoY Vs 4.9% YoY decline in 4Q25 3) Likely SSG rebound post 1HFY26 led by menu innovation and increasing footfalls. Long term drivers are intact with focus on 1) Burger, chicken and Coffee combos and Mcsaver meals 2) guidance of 580-630 stores by CY27 (45/50 in FY26) 2) menu innovations in café & value burgers with limited edition launches and offers from time to time 3) increased traction in chicken offerings and 4) flexibility of format with relevance across Metros, Tier 1, Mid-tier towns and Highways. WFL trades at 25xFY27 Post INDAS EV/EBIDTA.
Outlook
We assign DCF based target price of Rs745 (Rs769 earlier). SSG and demand traction in 3Q26 will determine the profit growth and stock returns. Retain Hold.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
