Westlife Foodworld Ltd. share price target

Recommendation With a 27% upside potenital from the CMP, we maintain a BUY rating on the stock.

Westlife Foodworld (Westlife) continues to outperform on execution. It had a good
performance in 3Q on all key metrics with 20% SSSG (on a stable base), highest- ever operating margin and store throughput. Relative success in the meal menu (with launch of big mac and gourmet burgers), rise in the availability of McCafe within restaurants (84% stores now have McCafe) and upgrade in existing stores to EOTF format (70% stores now have EOTF model) helped it (1) drive higher customer footfalls, (2) higher average check/bill-value (more customers per bill). We expect this to be one of the top performances in QSR sector in Q3FY23.

We maintain our BUY rating on the stock with a unchanged TP of Rs 930/share (30x Sep24E EV/EBITDA), implying an upside of 29% from the CMP.

Strategy Day: Vision 2027 filled with delicacies

Westlife’s Strategy day provided visibility towards long-term growth drivers of store throughput (AUVM), network expansion and margins. It aspires to increase store throughput to ~Rs90-100mn (implied store throughput in CY27 is ~Rs70mn which is slightly higher than current Rs63mn) though it did not provide a guidance.
on that unlike last meet.

We maintain our BUY rating with a revised TP of Rs 930/share (30x Sep24E EV/EBITDA) vs. TP Rs 870/share earlier, implying an upside of 19% from the current level.