Multiple triggers to help Westlife Development maintain outperformance

Sales uptick in dine-in and delivery channels, new products and gradual royalty hikes are positives

With a return of just under 40 per cent over the last three months, Westlife Development has been the best-performing quick service restaurant (QSR) stock in this period. Going ahead, expectations of operational outperformance, new addition to its food portfolio, gradual increase in royalty rates (instead of sharper increase in the 2026-27 financial year or FY27) were some of the triggers for the rally. Brokerages have upgraded the earnings estimates of the company by 3-17 per cent for FY23 and FY24 to account for the improvement in multiple parametres.

After a strong performance in the June quarter (Q2FY23), the company