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McDonald's India Operator Profit Halves; Higher Costs Weigh

July 30 (Reuters) - Westlife Foodworld, a McDonald's ​operator in India, reported a ‌52% fall in quarterly profit on Thursday, as fast-food restaurants grappled with higher ​energy, labour and raw material ​costs amid rising competition.

Operating costs have ⁠jumped for restaurants since the ​Middle East war started, even as ​discounting to fend off competition from smaller rivals including California Burrito, Wow Momo and ​Blue Tokai Coffee curbs profitability.

Westlife, ​which operates McDonald's restaurants in west and ‌south ⁠India, said its consolidated profit after tax stood at 5.9 million rupees ($61,655.8) for the quarter ended June ​30, against ​12.3 ⁠million rupees a year earlier.

Revenue rose to 7.36 billion ​rupees from 6.58 billion rupees ​a ⁠year earlier.

During the quarter, McDonald's promoted its 99-rupee Everyday Value Meals, ⁠comprising ​a burger, fries and ​a Coke.

($1 = 95.6925 Indian rupees)

Reporting by Praveen Paramasivam ​in Chennai; Editing by Mrigank Dhaniwala

Source: Reuters


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