SSS trends remain weak at -5% & -11% YoY for Westlife (McDonald's franchisee) & Yum! India respectively. This is moderation vs. Dec Q (0% / -10% YoY). Revenue growth was a muted 1% YoY for both names. Westlife mgmt. noted sentiment remains sluggish, and lower retail footfalls is impacting sales of impulse products. Yum! decline might be more prominent for KFC vs. Pizza Hut.
Store additions in Mar Q were lower QoQ – 7 net adds (vs. 10) for Westlife; Yum! overall had no new net adds after the usual massive increase in the Dec Q (50 KFCs + 45 Pizza Huts). In terms of gross adds, 3 new Pizza Hut delivery stores were added this Q (now 249, still a 40% growth YoY).
