McDonald's operator target price cut after Q2 results; check outlook

Westlife Foodworld shares fell as analysts cut the target price of the stock after it reported its September quarter earnings

Shares of Westlife Foodworld Ltd. fell 2 per cent as analysts cut the target price of the stock after it reported its september quarter earning for the current financial year (Q2FY26). 

 

The McDonald’s operator's stock fell as much as 2.41 per cent during the day to ₹574 per share. The Westlife Foodworld stock pared losses to trade 1.69 per cent lower at ₹578.2 apiece, compared to a 0.34 per cent decline in Nifty 50 as of 10:17 AM. 

 

Shares of the company fell for the third straight session. The counter has fallen 27 per cent this year, compared to a 8.5 per cent advance in the benchmark Nifty 50. Westlife Foodworld has a total market capitalisation of ₹9,026.36 crore.   READ LATEST STOCK MARKET UPDATES LIVE

 

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Westlife Foodworld Q2 results 

Westlife Foodworld, which operates McDonald’s restaurants in western and southern India, reported a multifold jump in consolidated net profit to ₹27.7 crore for the quarter ended September 2025, aided by gains from exceptional items.

 

In the same quarter last year, the company had posted a consolidated net profit of ₹35 lakh. However, excluding gains from exceptional items and tax benefits, Westlife Foodworld recorded a loss of ₹15.85 crore during the quarter.

Analysts on Westlife Foodworld Q2 earnings

Motilal Oswal said Westlife Foodworld’s weak performance continued in the second quarter, prompting a 5-6 per cent cut in its Ebitda estimates for FY26 and FY27. The brokerage noted that demand remained subdued, with same-store sales growth declining year-on-year despite a low base.

 

It added that while the company has been aggressive in store additions-unlike in the past-the current demand environment is not supportive of such rapid expansion, with performance in South India remaining a concern. Motilal Oswal said the benefits of ongoing initiatives may take longer to materialise, and that weak underlying growth along with rising costs from strategic investments could weigh on operating and restaurant margins.  ALSO READ | Eternal vs Swiggy: Deja Vu in QC battle, but this time could be different 

JM Financial said Westlife Foodworld will focus on driving sustainable, profitable growth through value offerings and product innovations. However, the brokerage noted that a delayed demand recovery is leading to operating deleverage and weak margins. 

 

It cut its pre-Ind AS Ebitda estimates by 15-30 per cent for FY26-FY28 and maintained an 'Add' rating on the stock with a revised target price of ₹650, down from ₹720 earlier.

 

Antique Stock Broking said Westlife Foodworld’s gross margins are expected to remain around 70 per cent in the medium term. However, the brokerage cut its pre-Ind AS Ebitda estimates for FY26-FY28 by 20-24 per cent, citing macroeconomic headwinds and operating deleverage. It maintained a 'Hold' rating on the stock with a revised target price of ₹560, down from ₹837 earlier.