iRobot Files for Chapter 11 Bankruptcy Amid Rising Competition and Tariff Pressures 
FDA Says No Black Box Warning Planned for COVID-19 Vaccines Despite Safety Debate 
OpenAI Explores Massive Funding Round at $750 Billion Valuation 
Robinhood Expands Sports Event Contracts With Player Performance Wagers 
Treasury Wine Estates Shares Plunge on Earnings Warning Amid U.S. and China Weakness 
MetaX IPO Soars as China’s AI Chip Stocks Ignite Investor Frenzy 
Elliott Management Takes $1 Billion Stake in Lululemon, Pushes for Leadership Change 
ANZ New CEO Forgoes Bonus After Shareholders Reject Executive Pay Report 
Trump Sues BBC for Defamation Over Edited Capitol Riot Speech Clip 
Apple Explores India for iPhone Chip Assembly as Manufacturing Push Accelerates 
Republicans Raise National Security Concerns Over Intel’s Testing of China-Linked Chipmaking Tools 
Micron Technology Forecasts Surge in Revenue and Earnings on AI-Driven Memory Demand 
Citi Appoints Ryan Ellis as Head of Markets Sales for Australia and New Zealand 
Union-Aligned Investors Question Amazon, Walmart and Alphabet on Trump Immigration Policies 
EU Signals Major Shift on 2035 Combustion Engine Ban Amid Auto Industry Pressure 
Apple Opens iPhone to Alternative App Stores in Japan Under New Competition Law 
Amazon in Talks to Invest $10 Billion in OpenAI as AI Firm Eyes $1 Trillion IPO Valuation 
Westlife Foodworld, the operator of McDonald's restaurants in West and South India, experienced an unexpected decline in quarterly earnings. This setback was caused by rising costs, overshadowing the increase in sales of their popular burgers and fried chicken.
Higher Expenses and Revenue
According to Reuters, consolidated net profit after tax for the July-September quarter fell to 223.7 million rupees ($2.7 million), down from 315.4 million rupees a year ago. Analysts were anticipating a profit of 319.6 million rupees.
The Economic Times reported that during the quarter, the prices of key commodities, such as cheese and vegetables, surged, leading to escalated expenses. Some restaurants had to remove tomatoes from their recipes due to the cost spike.
Despite this, Westlife witnessed growth in revenue, which rose by 7.4% to 6.15 billion rupees. This increase was mainly driven by the introduction of discounted meals and the opening of new stores.
Challenging Market Conditions
Chairperson Amit Jatia highlighted that McDonald's India operated in challenging market conditions with ongoing macroeconomic challenges. Nevertheless, the company remains committed to investing in new stores and expanding its business.
Shares of Westlife, which runs 370 restaurants across states like Maharashtra and Tamil Nadu, declined by 2.2%. As a result, their gains for the year were reduced to approximately 11.3%.
Westlife's disappointing earnings follow in the footsteps of fast-food competitor Jubilant FoodWorks, who reported a smaller-than-expected drop in earnings. This outcome resulted from their cost-cutting measures and the demand for more affordable pizzas.
Despite the current obstacles, Westlife Foodworld remains future-focused. With its extensive presence in Maharashtra and Tamil Nadu, Westlife Foodworld plans to overcome the prevailing macroeconomic challenges and achieve growth in the coming periods.
With plans to open new stores and expand its presence, the company is determined to overcome existing challenges and strengthen its position in the market.
Photo: Jayana Rashintha/Unsplash
