Today, we are going to estimate the Westlife Foodworld Share Price Target 2024 to 2050 Long Term Prediction. Westlife Foodworld is listed on the NSE under the symbol “WESTLIFE” and on the BSE with the code “505533“. let’s analyze the future of Westlife Foodworld Share Price Target as well, including whether it’s a good time to buy or sell them today.
Additionally, we will also take into analysis Westlife Foodworld Share Price Target Recommendations from various brokerage firms, including Target’s High Price, Target’s Low Price and Recommendation Key Buy or Sell at the end of the article.
Profile of Westlife Foodworld
|Westlife Foodworld Limited
|30 October 1982
|Master franchisee for McDonald’s in western and southern India
|Operates McDonald’s restaurants, including
McDelivery, Dessert Kiosk
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About Westlife Foodworld Company
Westlife Foodworld Ltd, previously known as Westlife Development Ltd, is an Indian company primarily engaged in operating Quick Service Restaurants (QSR) under the McDonald’s brand in India’s western and southern regions.
This business move aligns with the latest trends and consumer demands in the fast-food industry. The company’s focus is on offering a mix of dine-in, takeaway, and delivery services to cater to a diverse customer base. With a strong emphasis on quality and customer satisfaction, Westlife Foodworld Ltd aims to be a significant player in India’s QSR segment.
The company’s strategy involves expanding its reach and improving the customer experience by integrating modern technology and digital capabilities into its operations. This approach reflects a shift towards a more technology-driven business model in the fast-food sector, positioning Westlife Foodworld Ltd for future growth and success in the competitive Indian market.
Financial of Westlife Foodworld
Conduct a SWOT analysis of Westlife Foodworld Share based on its financials. We will break down the key elements of strengths, weaknesses, opportunities, and threats using the financial data.
Strong Revenue Growth: Westlife Foodworld has consistently shown impressive revenue growth over the years, with the Total Revenue increasing from ₹9,752.5 crore in 2020 to ₹23,593.2 crore in the trailing twelve months (TTM) period. This reflects the company’s ability to attract customers and generate sales.
Gross Profit Margin: The company maintains a healthy Gross Profit Margin, which indicates its efficient cost management. The Gross Profit increased from ₹4,013.1 crore in 2020 to ₹12,324.3 crore in TTM, showcasing profitability.
Diverse Product Portfolio: Westlife Foodworld operates a diverse portfolio of food brands, offering a wide range of food products to cater to different consumer preferences. This diversity can help mitigate risks associated with market fluctuations.
Positive Earnings per Share (EPS): Despite facing challenges in the past, the company has managed to achieve positive EPS in recent years. In TTM, the Basic EPS was ₹6.90, indicating a potential return for shareholders.
Operating Loss in the Past: Westlife Foodworld faced operating losses in the past, with Operating Income as low as ₹-788.7 crore in 2020. Although it has improved in recent years, the company needs to remain vigilant about profitability.
High Debt Levels: The company’s Total Debt has been on the rise, reaching ₹12,030 crore in 2023. High debt levels can increase financial risk and interest expenses, which need to be managed carefully.
Negative Working Capital: Westlife Foodworld has consistently reported negative working capital, which suggests that it may face difficulties in managing short-term obligations. This could impact liquidity and operations.
Expansion and Market Penetration: With the Indian food industry growing rapidly, there is an opportunity for Westlife Foodworld to expand its presence and capture a larger market share by opening more outlets and introducing new brands.
Diversification: The company can explore diversifying its product offerings to cater to changing consumer preferences and trends. This can include healthier menu options or exploring new cuisines.
Digital Transformation: Embracing digital technology, including online ordering and delivery services, can help Westlife Foodworld tap into the growing trend of online food ordering, especially in the post-pandemic world.
Intense Competition: The food industry in India is highly competitive, with numerous local and international players. Westlife Foodworld must constantly innovate and differentiate itself to stay ahead.
Economic Volatility: Economic downturns can lead to reduced consumer spending on dining out, impacting the company’s revenue and profitability.
Regulatory Changes: Changes in government regulations, especially related to food safety, labour laws, or taxation, can affect the company’s operations and costs.
An effective method for evaluating the Westlife Foodworld share price Target is by examining research reports and analyses conducted by reputable financial institutions and brokerage firms. The latest research reports are available on Westlife Foodworld Share Price Target.
|01 FEB 2024
The financial services firm HDFC Securities published the latest research report on 1 FEB 2024 for Westlife Foodworld’s Share Price Target, assigning an ‘Accumulate’ rating with a share price target of Rs. 800 from its current market price of Rs. 838 as on 31 Jan 2024.
Westlife Foodworld, the company behind McDonald’s operations in India, recently reported a challenging Q3 performance, with revenue and EBITDA taking a hit due to weak demand and external challenges. The Indian fast-food giant experienced a 2% YoY drop in revenue and a 13% YoY decrease in EBITDA, putting a spotlight on its profitability concerns.
One of the key factors contributing to Westlife’s woes has been the decline in Same Store Sales Growth (SSSG), which plummeted by 9% in Q3. This decline can be attributed to the prevailing weakness in eating-out trends, external challenges, and a high base comparison. External challenges, such as negative global sentiment towards McDonald’s during the Hamas-Israel war and floods in South India, were responsible for a significant 6% of the SSSG decline.
Westlife remains hopeful for an improvement in demand in the coming quarters. However, the lingering impact of these external challenges could persist for a while. Despite these hurdles, Westlife is aiming for high single-digit SSSG and plans to add 45-50 new stores annually in the medium term.
Westlife’s competitive edge lies in its diverse menu offerings catering to various price segments throughout the day. Moreover, sustained dine-in footfall and several strategies for margin expansion, such as full McCafe roll-out and menu expansion, position the company well against its peers.
Nonetheless, due to the weak demand environment, analysts are moderating their SSSG expectations. They foresee a gradual recovery that will lead to a 25% cut in earnings for FY24 and further reductions of 11% and 7% in FY25 and FY26, respectively.
In terms of valuation, Westlife is currently valued at 55 times the Price-to-Earnings ratio on Dec’25 Earnings Per Share (EPS), resulting in a target price (TP) of INR 800, according to analysts.
Here are some key highlights of Westlife Foodworld’s recent performance:
- Revenue fell by 2% YoY to INR 6 billion, with SSSG at -9%.
- On-premises revenue declined by 5% due to lower footfalls in affected stores, while off-premise revenue grew by 3%.
- Westlife opened eleven new McDonald’s stores in Q3FY24 and expanded into three new cities, maintaining its FY24 target of 40-45 store additions.
- Profit Before Tax (PBT) dropped by 52% YoY.
- Westlife remains confident in its ability to bounce back, highlighting that eating-out trends are showing signs of improvement after the festive season.
|01 FEB 2024
The financial services firm Axis Direct published the latest research report on 1 FEB 2024 for Westlife Foodworld’s Share Price Target, assigning a ‘Buy’ rating with a share price target of Rs. 930 from its current market price of Rs. 830 as on 31st Jan 24.
The Q3FY24 results for Westlife Foodworld revealed a miss in the estimated figures. Revenue, EBITDA, and PAT (Profit After Tax) all fell short of expectations, with revenue declining by 2% year-on-year. Same Store Sales Growth (SSSG) also experienced a significant setback, dropping by 9%. The decline was attributed to factors such as weak consumer demand, a high base, and external challenges, including floods in Chennai. After normalizing for the flood impact, SSSG still decreased by 3%.
Despite these challenges, the company’s management remains optimistic about the future, stating that the weakness has bottomed out, and they anticipate improvements in the coming quarters. On a TTM (Trailing Twelve Months) basis, the Average Revenue per store stood at Rs 6.44 crore, marking a 1% decline. However, off-premise sales managed to grow by 3% year-on-year, whereas on-premise sales faced a 5% decline due to reduced footfalls in affected stores.
What is noteworthy is that Westlife Foodworld continues to maintain its store opening guidance for FY24, FY25, and its Vision 2027 strategy. The company plans to open 40-45 stores in FY24, 45-50 stores in FY25, and aims to have a total of 580-630 stores by 2027. The Vision 2027 strategy includes scaling up fast-growing categories, leveraging an omnichannel strategy, increasing store opening guidance, and improving operating margins from 16% to 18-20%.
Analysts have faith in the company’s ability to deliver on these initiatives based on its past track record. Despite current near-term challenges, Westlife Foodworld has demonstrated substantial Revenue and EBITDA growth of 17% and 51%, respectively, over the period of FY16-20. Moreover, the long-term outlook for the QSR industry in India remains promising, driven by factors such as formalization, rising disposable income, and the trend of eating out.
The sector outlook for the QSR industry is cautious, but the company’s outlook and guidance remain positive. Analysts maintain a “BUY” recommendation on Westlife Foodworld shares. The current valuation stands at 30x Dec-25 EV/EBITDA, with a target price (TP) of Rs 930 per share, down from the previous TP of Rs 1,000 per share. Nevertheless, there is a 12% upside potential from the current market price, reinforcing the “BUY” rating.Show more +
We will analyze the performance of the company’s shares in recent times and provide you with a well-researched Westlife Foodworld Share Price Target 2024, 2025, 2030 to 2050 based on our Research knowledge and forecasting.
Westlife Foodworld Buy or Sell
Daily Low / High
Peer Comparison of Westlife Foodworld
|Mar Cap Rs.Cr.
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– As of 2 February 2024, the current share price of Westlife Foodworld is ₹848 Check out today’s current share price of Westlife Foodworld at the top.
– According to Google historical data, the price of Westlife Foodworld on 23 Aug 2019 was ₹281.05.
– The latest research report from “HDFC Securities” sets a Westlife Foodworld Share Price Target of Rs.800.
– Based on our analysis, the maximum Westlife Foodworld Share Price Target in 2025 is projected to be ₹960.
– Based on our analysis, the maximum Westlife Foodworld Share Price Target in 2027 is projected to be ₹1050.
– Based on our analysis, the maximum Westlife Foodworld Share Price Target in 2030 is projected to be ₹1200.
– Based on our analysis, the maximum Westlife Foodworld Share Price Target in 2035 is projected to be ₹1300.
– Based on our analysis, the maximum Westlife Foodworld Share Price Target for the Next 5 Years is projected to be ₹1150.
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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, Share price prediction is not an exact science, That’s why I am conducting in-depth research and using different AI tools to predict Westlife Foodworld Share Price Target.
Disclaimer– These Share Price Targets for “Westlife Foodworld Share Price Target” are only provided for informational purposes. It does not constitute a recommendation to buy, sell, or hold Westlife Foodworld stock. Investors should conduct their research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com