McDonald's India operator Westlife quarterly loss narrows as promotions attract customers
MCD•Westlife Foodworld's loss before tax and exceptional items narrowed to 26.95 million rupees in the quarter ended September 30, from 158.5 million rupees a year earlier. Revenue rose 16% to 7.42 billion rupees, while material costs surged nearly 37% to 2.42 billion rupees.
1. Loss narrows as revenue rises
Westlife Foodworld, which operates some McDonald's restaurants in India, reported a loss before tax and exceptional items of 26.95 million rupees for the quarter ended September 30, compared with 158.5 million rupees a year earlier. Revenue from operations rose more than 16% to 7.42 billion rupees, while material costs increased nearly 37% to 2.42 billion rupees.
2. Promotions draw customers
McDonald's offered meals starting at 99 rupees, delivery discounts, 50% off selected combos for a few days and limited-edition Spider-Man merchandise during the quarter. The article said rising costs and spending to compete with local restaurant chains and independent restaurants weighed on margins.
