The market had its eyes on QSR stocks on February 5, and two names clearly stood out. Devyani International and Westlife FoodWorld moved sharply higher after announcing their October–December quarter results.
Despite a mixed operating environment, investor sentiment around these QSR stocks turned positive, pushing both counters into strong intraday gains.
Market Performance: QSR Stocks Lead the Action
QSR stocks saw active buying as earnings updates hit the street.
- Devyani International surged nearly 9%, touching a three-week high of ₹133.84
- Westlife FoodWorld climbed close to 11% to ₹528.90
The sharp move came even as the broader market remained cautious, highlighting stock-specific interest driven by quarterly disclosures.
Main News: Earnings Updates Drive QSR Stocks
Both companies released their Q3 FY26 numbers during the week. While the financial results reflected ongoing challenges, the data also showed operational progress, which helped lift sentiment around these QSR stocks.
Importantly, the rally was not led by expectations or forward commentary but by what the numbers revealed about revenue trends, cost management, and store network actions.
Company Details: Devyani International Q3 FY26
Devyani International, which operates KFC and Pizza Hut outlets in India, reported another quarter of expansion and steady revenue growth.
Key Financial Data
- Net loss: ₹10.39 crore in Q3 FY26
- Q3 FY25 net loss: ₹49.20 lakh
- Q2 FY26 net loss: ₹21.9 crore
- Revenue from operations: ₹1,440.9 crore
- Growth of over 11% year-on-year
The sequential narrowing of losses stood out, especially when paired with rising revenues.
Store Network Update
Expansion remained a key theme during the quarter.
- 95 net new stores added
- 54 KFC India
- 18 Pizza Hut
- Focus shifted towards rationalising loss-making Pizza Hut outlets
- New stores to offset closures, helping optimise existing assets and capex
Leadership Update
The company also announced a top-level leadership change.
- Manish Dawar to be elevated as President and CEO
- Effective from April 1, 2026
The stock had already gained over 6% in the previous session and continued its upward move after the results.
Company Details: Westlife FoodWorld Q3 FY26
Westlife FoodWorld, the operator of McDonald’s restaurants in India, reported profitability despite pressure on year-on-year numbers.
Key Financial Data
- Net profit: ₹1.02 crore in Q3 FY26
- Q3 FY25 net profit: ₹7.01 crore
- YoY decline: 85%
- Exceptional cost: ₹9.69 crore
- Linked to the implementation of new labour codes
Revenue and Operating Trends
- Revenue: ₹6.71 billion for Q3 FY26
- Same Store Sales Growth (SSSG): -3.2% during the quarter
- January showed improved momentum, supported by higher guest counts
The focus during the quarter remained on affordability, disciplined execution, and maintaining volumes in a challenging demand environment.
Why QSR Stocks Reacted Positively?
The rally in QSR stocks was driven by how the market read the underlying data rather than headline profit numbers alone.
Short-term takeaways that shaped sentiment:
- Revenue growth remained intact despite demand pressure
- Store optimisation actions signaled tighter cost control
- Sequential improvement in losses stood out for Devyani
- Recovery signs in guest traffic aided sentiment for Westlife
These factors combined to push both QSR stocks sharply higher during the session.
Summary: QSR Stocks Back in the Spotlight
The February 5 trading session underscored how earnings clarity can move QSR stocks even in a cautious market.
Devyani International gained on revenue growth, store expansion, and narrowing losses. Westlife FoodWorld rallied as investors looked past near-term profit pressure and focused on operational stability and improving traffic trends.
For the market, the takeaway was simple: QSR stocks remain sensitive to quarterly data, and even small shifts in operational performance can quickly reflect in share prices.
Source: Moneycontrol
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