On Thursday, shares of Westlife Foodworld surged 10% to hit an all-time high of Rs 851.35 in intraday trade on a strong business outlook. Shares of the restaurant company surpassed the previous high of Rs 815.25 touched on December 6, 2022.

Westlife Foodworld is focused on establishing and operating Quick Service Restaurants (QSR) in India through its subsidiary Hardcastle Restaurants Pvt Ltd (HRPL). The company operates the McDonald’s restaurant chain in western and southern India and has a master franchise relationship with McDonald’s Corporation of America through the latter’s subsidiary.

In the January-March (Q4FY23) quarter, Westlife Foodworld reported sales at an all-time high of Rs 556 crore, up 22% YoY and SSSG (Same Store Sales Growth) at double-digit YoY growth of 14%. The strong sales were driven by double-digit growth in dine-in customers, causing the local business to be up 38% year-on-year.

The company said its own delivery channel, McDelivery, saw strong growth in its user base, with digital sales growing to around 62%, led by SOK (self-ordering kiosks).

The company reported a 30.3% year-on-year rise in consolidated net profit to Rs 203 crore for the quarter.

Despite the macro weakness, management targets 40-45 store additions (35 in FY23) and guides for strong 8% growth in SSG in FY24. The company believes the format offers the potential to add/expand new brand extensions, which should also help it deliver strong SSG in weak environments.

Additionally, management expects SSSG to be in the high single digits and add 40-45 new restaurants in FY24.

Motilal Oswal Financial has given a “neutral” rating on the stock.