WESTLIFE

** McDonald's India operator Westlife Foodworld WEST.NS gains 3.4% to 625.55 rupees

** Co says royalty rate payable to McDonald's fixed at 5% for FY26

** "This step is positive given that margins have remained under pressure," analysts at Investec said in a note; could lead to 8% increase in EBITDA for FY26

** Brokerage says the unchanged royalty payment rate will ease pressure amid muted demand

** Co indicated that royalty rate will remain unchanged until FY29, with a 50 bps upward revision in FY30, according to analysts at Investec

** Analysts rate the stock "Hold" on average; median PT at 773 rupees - data compiled by LSEG

** YTD, stock down 21.38%

(Reporting by Mridula Kumar)

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** Shares of quick service restaurant (QSR) operators gain between 1% and 3.5%

** India announced GST cuts on hundreds of consumer items ranging from soaps to small cars to spur domestic demand

** While the GST rate on QSR output remains same, lower tax on key inputs like cheese, other dairy products and chicken is down to 5% from 12%

** Jefferies says Jubilant Foodworks JUBI.NS, Devyani International DEVY.NS and Sapphire Foods SAPI.NS to benefit

** JUBI up 3.5%, while DEVY and SAPI rise 2.7% and 1.7%, respectively

** McDonald's India operator Westlife Foodworld WEST.NS climbs as much as 4.9%, last up 1.1%

** JUBI, SAPI, WEST rated "hold" on avg, DEVY rated "buy" - data compiled by LSEG

(Reporting by Manvi Pant in Bengaluru)

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** Bank of America says company-specific factors, not GST cuts, are key for growth and earnings upgrades for consumer firms

** Nifty FMCG Index .NIFTYFMCG is up nearly 1%, driven by a near 4% rise in Britannia Industries BRIT.NS on hopes of GST cut on biscuits

** BofA says if only the 12% GST slab is subsumed with no change to 5% and 18% slabs, the direct impact would be limited

** But moving some categories from 18% slab to lower could imply higher upside

** Brokerage remains selective in the consumer space, prefers Titan TITN.NS among discretionaries; says risk/reward is favourable for Varun Beverages VARB.NS and United Breweries UBBW.NS

** Brokerage more cautious on Avenue Supermarts AVEU.NS and quick service restaurant stocks like Westlife Foodworld WEST.NS, Devyani International DEVY.NS and Sapphire Foods SAPI.NS

** FMCG index is down 1% in 2025 so far, lagging the benchmark Nifty 50's .NSEI 5% rise

(Reporting by Nandan Mandayam and Nishit Navin in Bengaluru)

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** Macquarie cuts PTs on Indian fast food operators after weak Q1; says demand recovery only during Oct festive season

** Cuts PTs on Domino's franchisee Jubilant Foodworks JUBI.NS, McDonald's operator Westlife Foodworld WEST.NS, KFC franchisee Devyani International DEVY.NS and Pizza Hut operator Sapphire SAPI.NS

** Brokerage also lowers EPS estimates for all four with cautious near-term outlook

** Government's GST cut plans "enhances comfort" on demand recovery panning out in H2 FY26 - Macquarie

** Brokerage prefers DEVY followed by WEST; more confident on demand recovery for KFC and McDonald's operators

** On average, DEVY rated "buy", rest rated "hold", by analysts - data compiled by LSEG

** YTD, JUBI down 13%, DEVY falls 6%, WEST drops 11.3%, SAPI 1% down

(Reporting by Nandan Mandayam in Bengaluru)

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** India's Westlife Foodworld WEST.NS down 3%, Sapphire Foods India SAPI.NS slips 2%

** Westlife, which runs McDonald's MCD.N outlets in west and south India, posted a 62% plunge in profit

** Sapphire, which runs KFC and Pizza Hut, swung to a net loss of 18 million rupees ($208,261)

** SAPI's Q1 core profit below our and street's estimates, we are concerned about cautious near-term growth outlook and dependence on recovery for margin expansion - Macquarie note

** WEST's margins "in-line" and no improvement in growth metrics, we remain watchful of demand getting better - Motilal Oswal

** On an avg SAPI rated "buy", WEST rated "hold" - data compiled by LSEG

** YTD, WEST down ~5% and SAPI up 2%

($1 = 86.3340 Indian rupees)

(Reporting by Hritam Mukherjee in Bengaluru)

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July 23 (Reuters) - Westlife Foodworld WEST.NS, a McDonald's MCD.N franchisee in India, missed quarterly profit estimates on Wednesday, as restaurant chains faced stiff competition from local cafes and online kitchens.

The restaurant operator posted a consolidated profit after tax of 12.3 million rupees ($142,303) for the first quarter ended June 30, compared with a profit after tax of 32.5 million rupees a year ago.

Analysts had expected 50.8 million rupees of profit, according to data compiled by LSEG.

($1 = 86.4350 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Ananta Agarwal in Bengaluru; Editing by Mrigank Dhaniwala)

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May 14 (Reuters) - Westlife Foodworld WEST.NS, the operator of McDonald's MCD.N in parts of India, reported a jump in profit on Wednesday, as its cheaper menu items attracted budget-conscious consumers.

The restaurant operator posted consolidated profit after tax of 15.2 million Indian rupees ($178,163.28) for the fourth quarter ended March 31, compared with profit after tax of 7.6 million rupees a year ago.

($1 = 85.3150 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Shivani Tanna in Bengaluru)

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By Shivani Tanna and Praveen Paramasivam

May 5 (Reuters) - India's Jubilant FoodWorks' JUBI.NS strong sales growth for the March quarter is set to outpace rivals whose franchisees are expected to report muted growth despite value-focused promotions, several analysts said.

Operators of U.S. chains KFC YUM.N, McDonald's MCD.N and Burger King QSR.TO are likely to report a decline to mid-single-digit growth in same-store sales, as inflation-hit consumers cut back and local competition intensifies, according to six brokerages.

Jubilant, however, has already flagged a 12.1% increase in like-for-like sales in India in its quarterly update, which analysts say has benefited from its focus on online sales, discounts on third-party platforms, and a waiver of delivery fees on app orders.

Other franchisees have not issued sales updates. Sapphire kicks off earnings for the sector on Wednesday.

"Competitive intensity is growing in fried chicken and burger and the larger existing players like KFC and McDonald's don't have anything different to offer versus rivals," said Karan Taurani, an analyst at Elara Securities.

"Jubilant is performing the best of the lot," Taurani said, adding that its investments into 20-minute in-house delivery and app-led orders are helping reduce its reliance on third-party platforms, which rivals are heavily dependent on.

India's fast-food sector is cooling as inflation-hit consumers cut back, with franchisees relying on discounts to stay competitive in a crowded market.

Unlike Jubilant, which has pushed delivery and app-based offers, KFC and McDonald's franchisees rely more on dine-in traffic and face growing pressure from local cafes and restaurants, analysts said.

Jubilant reported a 34% jump in consolidated revenue to 21.07 billion rupees ($250.05 million) for the March quarter.

While Jubilant's digital strategy has delivered steady outperformance through the year, analysts expect its profit margins — like those of other operators — to remain under pressure in the March quarter, partly due to rising raw material and marketing costs.

Three brokerages expect Jubilant's core earnings margin — a metric the restaurant operator aims to boost over the next few quarters by tightening its costs — to be unchanged from a year earlier.

However, some analysts see fried chicken as a key long-term growth category, despite the challenge of sameness.

"If you see from a longer-term perspective, the next growth driver is the overall fried chicken category in India, but there would be some pressure for one or two quarters," said Preeyam Tolia of Axis Securities.

($1 = 84.2630 Indian rupees)

(Reporting by Shivani Tanna and Bharath Rajeswaran in Bengaluru and Praveen Paramasivam in Chennai; Editing by Nivedita Bhattacharjee)

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** Long-term view on Indian QSRs (Quick Service Restaurants)remains constructive and the ongoing prolonged growth slowdown is nearing its end, says Emkay Global

** Sees potential for return of mid-teen growth in FY26E for QSRs, beyond the muted Q4 - Emkay

** Emkay covers Jubilant Foodworks JUBI.NS, Westlife Foodworld WEST.NS and Devyani International DEVY.NS with "add", while Sapphire Foods SAPI.NS gets a "buy" rating.

** JUBI, DEVY and WEST up between 0.8%-4.2%, while SAPI is down close to 1%

** Average recommendation for JUBI, DEVY and SAPI is "buy," while WEST is a "hold", as per LSEG data

** Emkay remains in favor of JUBI and Sapphire, led by relatively better operating performance

** Maintains "add" on Westlife and upgrades Devyani to "add" from "reduce", due to price correction.

(Reporting by Shivani Tanna in Bengaluru)

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Westlife Foodworld Ltd WEST.NS:

• WESTLIFE FOODWORLD LTD - ELEVATES AKSHAY JATIA AS CEO

Source text: ID:nBSE9qPcGh

Further company coverage: WEST.NS

** Indian restaurant operator stocks jump between 3% and 10% after slew of demand-boosting measures in union budget

** Zomato ZOMT.NS and Swiggy SWIG.NS soar 6.5% and 7%, respectively

** Both were hit hard by cooling demand over last two months

** Among restaurant operators, Pizza Hut and KFC India franchisee Sapphire Foods SAPI.NS gains the most; Burger King's Indian operator Restaurant Brands Asia's RESR.NS up 3%, rising the least

** Domino's franchisee Jubilant Foodworks JUBI.NS gains 5%, Pizza Hut's other Indian operator Devyani Internatinal adds ~7%; McDonald's franchisee Westlife Foodworld WEST.NS advances 8.8%

** Finance Minister Nirmala Sitharaman says those earning up to 1.28 mln rupees ($14,791.53)/year won't have to pay any taxes

($1 = 86.5360 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru)

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Adds details and background throughout, quote in paragraph 3

Jan 29 (Reuters) - Westlife Foodworld WEST.NS, the operator of McDonald's MCD.N in India, reported a 59% drop in third-quarter profit on Wednesday, as expenses jumped amid rising store count and promotional spending.

Competition in the quick service restaurant business is heating up as both regional and international players vie for market share. Firms such as Burger King-operator Restaurant Brands Asia RSER.NS are expanding to consolidate market share while pricing items more cheaply to attract inflation-weary customers.

"Consumption trends continue to remain soft," Westlife said in a presentation to investors, adding that it expects improvement in the dine-in segment to be gradual.

Westlife, which operates McDonald's outlets in West and South India, added 15 restaurants during the quarter, taking its store count to 421.

It also spent more on promotions and offered inexpensive combinations, such as the 'everyday McSaver Meals' where consumers can get a snack and a drink for as little as 69 rupees, or less than $1.

Its same store sales, or sales from restaurants that have been in operation for a year, rose 2.8% year-on-year.

The company's revenue rose 9% year-on-year to 6.54 billion rupees in the three months to Dec. 31.

Overall expenses rose 11.7% due to inflationary pressures on key commodities such as oil, coffee and cocao.

Westlife's consolidated profit after tax fell to 70.1 million rupees ($810,123.66) for the December quarter, lower than 172.5 million rupees a year ago.

Core profit margin declined 200 basis points to 14% as advertising spending rose.

Shares of Westlife, which were up 1.3% before the results, closed 1.8% higher.

($1 = 86.5300 Indian rupees)

(Reporting by Ananta Agarwal in Bengaluru; Editing by Mrigank Dhaniwala)

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** Macquarie Equity Research anticipates uptick in demand for KFC in India, expects a turnaround for Pizza Hut, and a value-based recovery for McDonald's chains

** Devyani International DEVY.NS and Sapphire Foods SAPI.NS operate KFC and Pizza Hut chains in India, while Westlife Foodworld WEST.NS operates McDonald's

** Macquarie initiates coverage on DEVY and SAPI with "outperform" while reiterating the same on WEST

** There is near-term risk for KFC's same-store sales growth, but focus on value, strong competitive position in chicken, favorable base are expected to drive steady recovery - Macquarie

** Adds, pace of KFC store additions likely to be slower in SAPI vs DEVY due to longer gestation for chicken adoption in SAPI's KFC geographies

** Expects healthy EBITDA growth for DEVY in KFC given competitive position in chicken category

** For WEST, expects continued growth in footfalls buoyed by focus on value and launch of McCrispy chicken platform

** DEVY up 4.5% currently, while WEST up 0.2%; SAPI down 0.5%

** SAPI gained 16% in 2024, while DEVY and WEST shed 6% and 3%, respectively

(Reporting by Ashna Teresa Britto in Bengaluru)

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** Shares of India's McDonalds's operator Westlife Foodworld WEST.NS rise as much as 5.2% to 837.4 rupees, its highest since Sept. 27

** Goldman Sachs reiterates street high PT of 1,045 rupees, maintains "buy" rating

** Says positive impact of co's menu interventions expected to drive growth in Q3

** Co says confident of delivering positive same-store sales growth in Q3, will be better than peers, during interaction with GS

** Guest count to see decent growth in Q3, aided by soft base in year-ago quarter- GS

** More than 252,000 shares change hands, 2.2x its 30-day avg

** Rivals Domino's operator Jubilant Foodworks JUBI.NS rated "hold", KFC franchisees Devyani International DEVY.NS and Sapphire Foods SAPI.NS rated "buy" and Burger King operator Restaurant Brands Asia RESR.NS also at "buy"

(Reporting by Ashna Teresa Britto in Bengaluru)

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By Praveen Paramasivam, Shivangi Acharya

CHENNAI/NEW DELHI, Nov 13 - India's city dwellers are cutting spending on everything from cookies to fast food as persistently high inflation squeezes middle class budgets, threatening the country's brisk economic growth.

Slowing urban spending over the past three to four months has not only hurt the earnings of largest consumer goods firms, it has raised questions about the structural nature of India's long-term economic success.

Since the end of the pandemic, India's economic growth has been driven in large part by urban consumption, however, that now seems to be changing.

"There is a top end – the people with money are spending like that is going out of style," Nestle India Chairman Suresh Narayanan said.

"There used to be a middle segment, which used to be the segment that most of us fast moving consumer goods (FMCG) firms used to operate in, which is the middle class of the country, that seems to be shrinking."

Nestle India, which makes Kit Kats and other well-known goods, reported its first quarterly revenue drop since the COVID-hit June quarter in 2020.

While there is no officially defined income bracket for Indian middle class households, they are broadly estimated to account for a third of India's 1.4 billion people.

They are considered a key demographic both economically and politically, with middle class frustration seen as a significant factor behind Prime Minister Narendra Modi's weaker election performance this year.

Asia's third-largest economy is expected to expand 7.2% in the financial year ending March 2025, the fastest among its major peers.

Belying those rosy projections, however, are signs of a sharp slowdown in the household sector.

Indian urban consumption hit a two-year low this month, according to an index published by Citibank that captures indicators such as airline bookings, fuel sales and wages.

"While some of the fall could be temporary, the key macro drivers remain unfavourable," Citi's chief India economist Samiran Chakraborty said.

Growth in inflation-adjusted wage costs for listed Indian firms - a proxy for earnings of urban Indians - has remained below 2% for all the three quarters of 2024, well below the 10-year average of 4.4%, data from Citi showed.

Chakraborty cites this as a key factor impacting urban consumption, along with declining savings and tighter rules for personal loans.

Headline inflation has averaged 5% over the past 12 months, but food inflation has held above 8% as weather shocks elevated prices of vegetables, cereals and other essential foods. In October, retail inflation hit a 14-month high of 6.2% while food prices jumped to 10.9%.

Anecdotal data suggests retail sales rose close to 15% year-on-year during the 2024 festive season, which runs from August to November, Nomura said in a note last week, about half last year's pace.

"During this festival season, we have not spent at all," said Rajwanti Dahiya, 60, who survives on her husband's monthly pension of 30,000 Indian rupees ($356.76).

"Savings are low, barely there."

A 'SHRINKING' MIDDLE

India's central bank expects 7.2% GDP growth for the fiscal year ending March 2025 on the back of improved rural demand and a strong services sector.

Higher government investment could also support demand, said Rahul Bajoria, head of India and ASEAN economic research at Bank of America.

"If government spending kicks in, that probably does have some multiplier effects on private consumption spending as well," said Bajoria, who expects GDP growth at 6.8% in the current financial year.

Some are less optimistic with Citi and IDFC First Bank economists expecting GDP growth in the July-September quarter to miss the central bank's projected 7%, weighed by slower urban consumption.

That pessimism has hit consumer stocks with the Nifty FMCG index .NIFTYFMCG declining 13% since Oct. 1, compared with a 7.4% drop in the benchmark Nifty 50 .NSEI.

Of the FMCG index's 15 constituent firms, only one reported a pickup in sales volume growth in the September quarter.

Consumers in large cities are swapping branded items from hair oil to tea for cheaper unbranded alternatives, reflected in the first sales volume decline in 11 quarters for the foods and refreshment group at Hindustan Unilever.

"We see the growth in big city standing down, although in smaller cities and in rural the growth continues to be good," Hindustan Unilever chief executive Rohit Jawa said last month, after reporting lower than expected earnings.

Consumers are also cutting back on dining out.

Fast-food chains such as McDonald's, Burger King, Pizza Hut and KFC posted same-store sales declines, earnings showed.

While people are still coming, they are choosing cheaper meals, Rajeev Varman, CEO at Burger King operator Restaurant Brands Asia RESR.NS said after posting a 3% drop in quarterly same-store sales.

"We prefer budget-friendly stores that give good deals and discounts to manage our monthly expenditure," said 37-year old Avinash Crasto, a Mumbai marketing and sales executive who has a family of four and identifies as middle class.

($1 = 84.0640 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Shivangi Acharya in New Delhi; Editing by Sam Holmes)

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Oct 24 (Reuters) - Westlife Foodworld WEST.NS, the operator of McDonald's MCD.N restaurants in west and south India, reported a smaller-than-expected quarterly profit on Thursday, hit by sustained weak demand as cost-conscious customers cut back on spending.

The restaurant operator's consolidated profit after tax stood at 3.6 million rupees ($42,832.16) for the second quarter ended Sept. 30, down from 223.7 million rupees a year ago, according to a regulatory filing.

Analysts, on average, expected a profit of 48.9 million rupees, according to data compiled by LSEG.

($1 = 84.0490 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Ashna Teresa Britto in Bengaluru; Editing by Abinaya Vijayaraghavan)

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** Kaushalya Logistics KAUH.NS jumps as much as 11.7%

** Co signs Letter Of Intent with McDonald’s to open an outlet in one of its properties

** Stock on track to snap 2 weeks of losses

** More than 70,000 shares traded in stock's busiest day in over a week

** KAUH last up 6.8%; gains 5.6% so far this week

(Reporting by Meenakshi Maidas in Bengaluru)

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** Bernstein starts coverage of supermarkets operator Dmart AVEU.NS, fashion retailer Trent TREN.NS, Jubilant FoodWorks JUBI.NS, Devyani International DEVY.NS with "Outperform"

** Says Dmart has "clear value positioning"; Trent benefiting from private label portfolio

** Dominos India franchisee Jubilant and KFC India operator Devyani to see boost from revival in fast food demand, menu innovation, expansion

** Consumers beyond the top 10% of income pyramid and outside the top 40 cities to boost retail, restaurant sectors: Bernstein

** Brokerage however rates fashion retailer Aditya Birla Fashion & Retail ADIA.NS and McDonald's operator Westlife Foodworld WEST.NS "Underperform"

** Rigid cost structure to weigh on WEST profitability; debt overhang and weak growth in legacy brands to hurt ADIA - brokerage

** Starts Pizza Hut operator Sapphire Foods SAPI.NS with "Marketperform", citing high valuations

** FMCG index .NIFTYFMCG is up 10.14% in 2024, underperforming the 15.3% rise in Nifty 50 .NSEI

** TREN up 6%, DEVY up 1.2% while AVEU is trading 0.2% lower; ADIA, JUBI, WEST, SAPI down 0.3%-1.6% - Exchange data

(Reporting by Bharath Rajeswaran in Bengaluru)

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** Shares of Jubilant FoodWorks JUBI.NS up 8.3% to 648.6 rupees, their highest since Feb. 2022

** The Domino's India franchisee reported near two-fold jump in Q1 profit on Friday

** Stock eyes busiest trading session since November 2022, volumes 6x the 30-day avg

** Analysts' avg rating on stock is "Hold", in line with rating on peer Westlife Foodworld WEST.NS while Restaurant Brands Asia RESR.NS, Sapphire Foods SAPI.NS are rated "Buy", per LSEG data

** Median PT on JUBI is 567 rupees - a 5.3% discount on last close

** Stock up 15% YTD vs 13% gains in SAPI, 4% fall in RESR and ~3% loss in WEST

(Reporting by Manvi Pant in Bengaluru)

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July 25 (Reuters) - Westlife Foodworld Ltd WEST.NS:

• Q1 CONSOL PAT 32.5 MILLION RUPEES; IBES EST. 111.2 MILLION RUPEES

• Q1 CONSOL TOTAL REVENUE FROM OPERATIONS 6.16 BILLION RUPEES; IBES EST. 6.35 BILLION RUPEES

Source text for Eikon: [ID:]

Further company coverage: WEST.NS

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** Shares of Devyani International DEVY.NS down 3.3% at 150.3 rupees

** KFC's India operator posted Q4 loss vs profit a year earlier

** Stock was up 0.3% before results

** Rivals Sapphire Foods SAPI.NS and Westlife Foodworld WEST.NS posted Q4 profit slumps

** DEVY, SAPI stock rated "buy" on avg by analysts, WEST rated "hold" - LSEG data

(Reporting by Varun Vyas in Bengaluru)

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Adds details

BENGALURU, May 10 (Reuters) - Sapphire Foods India SAPI.NS, which operates the Pizza Hut and KFC chains of restaurants, posted its biggest profit fall since listing and missed estimates on Friday, as inflation-weary customers continued to cut back on dining out and ordering in.

The Yum Brands YUM.N franchisee's consolidated net profit fell 98% to 23.9 million Indian rupees ($286,271.4) for the quarter ended March 31, marking its fourth straight quarterly profit fall.

Analysts, on average, had expected a profit of 44.5 million rupees, according to LSEG data.

Shares of the company, which went public in November 2021, fell as much as 3.3% after the results.

India's quick-service restaurants struggled throughout the fiscal year to lure in customers, who cut back spending due to sticky inflation. The country's food inflation, which accounts for nearly half of the overall consumer price basket, has remained high so far this year.

Sapphire Foods's restaurants launched new items at lower prices, as well as valued-added meals such as Pizza Hut's launch of a cheesy pizza-sandwich meal called Melts priced at 259 rupees and above, but customers could not be swayed.

Expenses rose 15% as raw material prices climbed 9.4%. Revenue climbed 12.7% to 6.2 billion rupees.

Rival McDonald's India franchisee Westlife WEST.NS also posted a 96% slide in fourth-quarter profit on frail demand.

Devyani International DEVY.NS, which also operates KFC outlets in the country, and Domino's India-franchisee Jubilant FoodWorks JUBI.NS are yet to report results.

($1 = 83.4872 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Janane Venkatraman)

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BENGALURU, May 8 (Reuters) - Westlife Foodworld WEST.NS, the operator of McDonald's restaurants in west and south India, reported a 96% slide in fourth-quarter profit on Wednesday as cash-strapped consumers cut back on dining out and ordering in despite fast-food chains' attempts to lure them with discounted prices.

The franchisee said consolidated profit after tax fell to 7.6 million rupees ($91,012.8) for the January-March quarter from 200.9 million rupees a year earlier.

($1 = 83.5047 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sohini Goswami)

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By Navamya Ganesh Acharya and Praveen Paramasivam

BENGALURU/CHENNAI, April 24 (Reuters) - Top fast-food franchisees in India are likely to report a slump in quarterly earnings as cash-strapped consumers continued to cut back on dining out and ordering in, analysts said, spurning the hundreds of new restaurants that operators opened in 2023.

Pizza franchisees such as Jubilant Foodworks JUBI.NS, Devyani International DEVY.NS and Sapphire Foods India SAPI.NS struggled throughout 2023 due to heightened competition, with burger chains also joining the struggle later in the year due to inflation.

Even new affordable menu items, such as Burger King's 99-rupee combination of burger, beverage, and fries, introduced last year, failed to lure customers as India's monthly inflation rate remained above the target rate so far this year.

"Earlier you might be visiting (fast-food chains) three or four times monthly. Now everyone is restricting to once or twice," said Kranthi Bathini, equity strategist at WealthMills Securities.

Analysts polled by LSEG estimate net income slumping between 54% and 97% in the March quarter for Devyani and Sapphire, which run the Pizza Hut chain of restaurants, and McDonald's operator Westlife Foodworld WEST.NS.

They expect a net loss at Burger King operator Restaurant Brands Asia RESR.NS to widen sequentially, also marking at least a 12th consecutive quarterly loss.

Same-store sales are also likely to fall across the board, analysts say, with the decline expected to be more pronounced at Pizza Hut stores at more than 10%.

However, this has not deterred franchisees - including Sapphire and Devyani, which also run KFC stores, - from opening new restaurants nationwide, from Kalimpong hill town in West Bengal to Shoolagiri village in Tamil Nadu.

While restaurant operators and analysts expect the aggressive store opening plans to drive long-term growth, it has not immediately translated to earnings growth, also squeezed by stiff competition from local rivals.

Local pizzerias such as La Pino'z are mounting pressure on international counterparts, while Restaurant Brands and Westlife face competition from regional players such as Jumboking and Biggies Burger.

Westlife kicks off restaurant earnings on May 8 in India, while others are expected to report in the following days.

Like consumer goods analysts, restaurant experts also expect a rebound in demand in the second half of the financial year - roughly from October onwards - on rising expectations of the cost of living easing.

(Reporting by Navamya Ganesh Acharya in Bengaluru and Praveen Paramasivam in Chennai; Editing by Janane Venkatraman )

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** Shares of Westlife Foodworld WEST.NS, McDonald's MCD.N India operator, up 0.4%; rose as much as 2.5% to session high of 829.90 rupees

** Investec Equities says demand stabilized in Q4 - expects same store sales growth (SSSG) to improve sequentially in quarter

** Gross margins to expand by 22bps Q/Q, aided by benign commodity costs - Investec

** Co's SSSG declined to 9% from 20% Y/Y in Q3, EBITDA margins fell to 16% from 18%

** Investec keeps "buy", PT of 923 rupees

** Stock set for fourth consecutive session of gains; eyes third straight week of gains

** WEST down 0.74% YTD; peers Jubilant FoodWorks JUBI.NS and Devyani International DEVY.NS have fallen 18.8% and 19.2%, respectively, while Sapphire Foods SAPI.NS is up 7.7%

(Reporting by Ashna Teresa Britto and Navamya Ganesh Acharya in Bengaluru)

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** Demand environment, barring chocolates, remains weak, but could pick up post harvesting season in April with likely good winter-sown crop - Nirmal Bang

** Brokerage remains positive on Britannia BRIT.NS, Tata Consumer Products TACN.NS and Gillette India GILE.NS among staples

** Among discretionary, it remains positive on United Breweries UBBW.NS and Westlife Foodworld WEST.NS

** Adds if there is no dry spell or further unseasonal rain in next three weeks, price stability is likely as quality and quantity of wheat and barley expected to be good; bodes well for BRIT and UBBW

** After recent heavy investments by BRIT, next few years could see higher topline growth once near-term inflation impact on demand dissipates - Nirmal Bang

** Expects ~13%/15.5% revenue/PAT CAGR for BRIT over FY24-FY26; rates co 'buy' with target price of 5,910 rupees

** Adds positive on TACN over medium-to-long term over improvement in margins, gradual recovery in volume growth in foods and beverages businesses

(Reporting by Rama Venkat in Bengaluru)

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March 5 (Reuters) - Westlife Foodworld Ltd WEST.NS:

• FSSAI VERIFIES MCDONALD'S INDIA USES 100% REAL CHEESE

• APEX FOOD SAFETY STANDARDS REGULATOR VERIFIED CHEESE USED BY MCDONALD'S INDIA AS '100% REAL CHEESE

• INDEPENDENT NABL ACCREDITED LABS CONFIRM 100% REAL CHEESE AND NO CHEESE ANALOGUES OR SUBSTITUTES

• MCDONALD'S INDIA (W&S) HAS RETAINED TERM "CHEESE" IN NAMES OF ITS PRODUCTS CONTAINING CHEESE

Source text for Eikon: ID:nBSE99SVd8

Further company coverage: WEST.NSMCD.N

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By Dhwani Pandya and Praveen Paramasivam

MUMBAI, Feb 27 (Reuters) - India's western state of Maharashtra will inspect outlets of global fast-food brands to check if they use cheese alternatives in products wrongly promoted as containing real cheese, widening scrutiny beyond a crackdown on McDonald's, a top official said.

The checks threaten to cause a headache for global brands after recent inflationary pressure hit consumption of burgers and pizzas that are pricey for many Indian consumers, prompting firms to launch of discounted offerings.

McDonald's MCD.N biggest India franchisee, Westlife Foodworld, WEST.NS has been defending its use of "real cheese" after media reported that state authorities last year found some products made use of so-called cheese analogues of vegetable oil, rather than real cheese.

The McDonald's franchisee disagreed with the findings, but in December it dropped the word "cheese" from the names of many burgers and nuggets it sells statewide, letters seen by Reuters show.

It renamed a "corn and cheese burger" as an "American vegetarian burger", for example.

Inspectors of the state's Food and Drug Administration will now visit all McDonald's outlets, as well as those of other major brands, to check for similar violations of display and labelling rules, its chief, Abhimanyu Kale, told Reuters.

"We are planning to check all outlets of McDonald's," he said. "We will also take action on other well-known and frequently visited global fast-food chain outlets," he added, but declined to identify the brands being targeted.

Shares of Westlife plunged as much as 6.7% after the Reuters report.

Another senior state government official, who sought anonymity, said inspectors would visit Indian franchisee outlets of brands such as Domino's DPZ.N, Pizza Hut, Burger King and KFC.

Indian state authorities have the power to suspend the licences of restaurants found to have infringed food and safety regulations in a way that misleads consumers.

Westlife, which runs McDonald's in west and south India, will welcome any inspections and maintains the "highest standards", its managing director, Saurabh Kalra, said.

Domino's franchisee Jubilant FoodWorks JUBI.NS, Burger King operator Restaurant Brands Asia RESR.NS and Devyani International DEVY.NS, which operates Yum Brands' YUM.N Pizza Hut and KFC in India, did not respond to Reuters queries.

Another Pizza Hut operator, India's Sapphire Foods SAPI.NS, declined comment.

Devyani shares slipped on Tuesday's news to trade down 4%.

India's western state of Maharashtra is its second most populous. Home to the financial capital Mumbai, which has about 100 McDonald's outlets, and many other urban cities, it is a key market for global fast-food brands.

In the McDonald's case, state food inspectors suspended the licence of one outlet east of Mumbai in November for allegedly using analogues in products promoted as containing cheese.

The suspension was later revoked on appeal by Westlife, the franchisee.

The company reassured many consumers online who voiced concerns about its cheese offerings, saying on social network X that it uses "globally approved gold-standard suppliers".

"Our cheese is made from real milk only and we do not use any substitutes or cheese analogues," it said on Monday.

(Editing by Aditya Kalra and Clarence Fernandez)

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By Nandan Mandayam and Ashna Teresa Britto

BENGALURU, Jan 31 (Reuters) - Indians are going out less often for pizzas and burgers, third-quarter results at Domino's and McDonald's local franchisees showed on Wednesday, with analysts noting that tough competition and demand-dampening inflation would strain their earnings in the near term.

Domino's restaurants operator Jubilant Foodworks JUBI.NS reported a surprise profit fall, while Westlife Foodworld WEST.NS, which operates McDonald's restaurants in south and west India, posted a bigger-than-expected profit drop.

Quick-service restaurant (QSR) operators in the country have done everything from rolling out cheaper offerings and increasing discounts to cutting packaging costs in a bid to prop up demand but have failed to get Indians to eat out more often amid high inflation.

The same companies were among the biggest beneficiaries during last year's festive session as Indians began dining out more often after several pandemic-ridden years.

The demand slowdown after 2023's high base has not only dragged their earnings, but has also resulted in negative same-store-sales growth (SSSG) compared to the usual 5%.

While demand weakness "might be near the bottom," the industry is unlikely to reach earlier SSSG growth, said Karan Taurani, an analyst with Elara Capital.

The margins of the two companies are also unlikely to see a "significant recovery," according to Amnish Agarwal, analyst at Prabhudas Lilladher, with Taurani also adding that intensifying competition from smaller players would keep margins "strained."

Jubilant's profit of 657.1 million rupees ($7.9 million) was down for a fifth straight quarter, much lower than analyst estimates of 902.6 million rupees, while its revenue growth slowed for the seventh quarter in a row.

Westlife, meanwhile, reported its first revenue fall in three years and its profit of 172.4 million rupees came in far below analyst estimates of 331.1 million rupees, as per LSEG data.

($1 = 83.0180 Indian rupees)

(Reporting by Nandan Mandayam and Ashna Teresa Britto in Bengaluru; Editing by Sohini Goswami and Janane Venkatraman)

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BENGALURU, Jan 29 (Reuters) - Restaurant Brands Asia RESR.NS, which operates Burger King and Popeyes chains in India and Indonesia, reported a narrower third-quarter loss on Monday, boosted by strong sales in the festive season.

The company's consolidated net loss narrowed to 361.8 million rupees ($4.4 million) in the three months ended Dec. 31, from 504.2 million rupees a year earlier.

Nonetheless, this is the company's seventeenth consecutive quarterly loss, hurt this time around by a nearly 10% jump in total expenses.

The company, which runs quick service chains owned by Restaurant Brands International QSR.TO, said prices of ingredients including chicken, cheese, tomatoes and onions rose 12.6%.

However, revenue increased about 15% during the quarter, helped by consumers stepping out during the Diwali festival in India and the Christmas holiday period more broadly.

Sales also got a boost in India, which accounts for about 74% of total sales, as some vegetarian-centric religious periods fell in September this year, instead of October.

During the October-December quarter, Restaurant Brands Asia's same-store sales growth at Indian Burger King restaurants slowed to 2.6% from 28% in the year-ago quarter.

Rival fast food chain operators such as KFC-operator Devyani International DEVY.NS, Pizza Hut-operator Sapphire Foods SAPI.NS, McDonald's-operator Westlife Foodworld WEST.NS and Domino's India-franchisee Jubilant FoodWorks JUBI.NS are yet to report results.

Restaurant Brands Asia's shares closed down at 2.9% ahead of results on Monday.

($1 = 83.1300 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sherry Jacob-Phillips and Savio D'Souza)

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