Shares of Westlife Development, McDonald’s main franchisee in western and southern India, rose nearly 8% in early trade on July 28 after the company reported record June sales for the quarter.

At 9.58 am, the stock was trading at Rs 580, up 7.86%.

The company posted record sales of Rs 538 crore in Q1FY23, up 108% year-on-year. Westlife has had three strong quarters in a row with average annual sales of over Rs 6 crore per store and an EBITDA margin of over 16%. It posted a cash profit after tax (PAT) of Rs 55 crore.

Same-store sales growth (SSG) surged 97% year over year.

Its restaurant operating margin (ROM) of 21.6% was 4.5 times higher than last year and 68% higher than pre-Covid Q1FY20. The operating EBITDA margin was 17.1%, while the cash PAT margin was 10.2%. The company grew 41% on a Q1FY20 basis.

The company said more than 55% of its overall business growth came from digital channels. Westlife’s McDelivery App also had the highest quarterly sales, with more than 18.5 million cumulative downloads.

Five new restaurants were added during the quarter, and 12 are under construction. Westlife plans to add 35-40 new restaurants in FY23, and more than 200 new restaurants in the next three to four years, focusing on smaller emerging cities.

JM Financial said its numbers exceeded expectations by various indicators. The broker maintained a “buy” rating on the stock with a 12-month target of Rs 645, up from Rs 620.