Sales growth to double Jubilant FoodWorks, Westlife Development margins

Improving operating leverage will boost profitability over next 3 years

Despite their better performance over the last year, India’s largest, listed quick service restaurant (QSR) stocks — Jubilant FoodWorks (Jubilant) and Westlife Development (Westlife) — still have more legs to run. While Jubilant (which operates the Domino’s franchise) has tripled in value, Westlife (which runs the McDonalds stores) has added 55 per cent to its shareholder wealth.
 
The reason for the optimism has been an uptick in the growth of same- store sales (SSS) that the top chains have experienced over the last few quarters. Led by higher volumes growth, SSS growth for the Indian operations of Domino’s, KFC,