The shares of quick service restaurants (QSR) companies Devyani International and Westlife FoodWorld rallied in trade on February 5 after the companies announced their earnings for the October-December quarter of the ongoing financial year 2026.

Devyani International, which operates KFC and Pizza Hut outlets in India, saw its shares rally around 9 percent to a three-week high of Rs 133.84 apiece on Thursday.

The shares of Westlife FoodWorld, which operates McDonald's franchisees in India, rallied nearly 11 percent to Rs 528.90 apiece.

Devyani International Q3 Results:

Devyani International on February 4 reported a consolidated net loss of Rs 10.39 crore for Q3 FY26, as compared to a net loss of Rs 49.20 lakh in the same quarter of the previous financial year. The firm’s net loss however narrowed sequentially from the Rs 21.9 crore reported in Q2 FY26.

The company’s revenue from operations rose more than 11 percent to Rs 1,440.9 crore during the quarter under review.

Devyani International reported 95 net new store additions in the quarter, with 54 net additions to KFC India and 18 net additions to Pizza Hut. “We have also started the process of turnaround of the Pizza Hut business by rationalizing loss-making stores. Our idea is to bring a sharper focus to this exercise and therefore we will open new stores only to compensate for the closure of loss-making stores. This will also help us to utilize the existing assets and equipment in our new stores and bring down the capex for the new openings as well,” said Devyani International Non-Executive Chairman Ravi Jaipuria.

“DIL is at a critical inflection point in its growth journey, as we prepare to scale into a larger, more diversified and more complex organization. The Board believes that this next phase requires a bold strategic vision, backed by strong execution capability. Accordingly, Manish Dawar shall get elevated as President and CEO for DIL with effect from April 1, 2026,” he added.

The company had announced the results in the market hours of Wednesday. The stock had jumped more than 6 percent yesterday, and is extending gains today.

JPMorgan remained ‘overweight’ on the stock, with a target price of Rs 155 apiece. It said that the firm’s EBITDA beat estimates on better margins. It added that same-store sales trends improved sequentially, turning positive in January for most formats.

Goldman Sachs kept a ‘Buy’ call on the stock, with a target price of Rs 160 apiece. The international brokerage flagged positive January same-store sales but said it is "too early" to call it a sustained recovery.

UBS kept a ‘Buy’ call on the stock, with a target price of Rs 170 apiece. The international brokerage sees an "emerging turnaround" for the company, helped by pricing, promotions and product interventions. It added that improving profitability in KFC and a rationalised Pizza Hut network could aid growth.

Westlife FoodWorld Q3 Results:

Westlife FoodWorld on February 5 reported a consolidated net profit of Rs 1.02 crore for the October-December quarter of the ongoing financial year 2026. This marks an 85 percent YoY fall from the Rs 7.01 crore net profit reported in the same period of the previous financial year.

The earnings were however impacted by a one-time exceptional cost of Rs 9.69 crore arising out of the new labour codes which took effect last year.

“Amidst an ongoing challenging operating environment, the company prioritized driving affordability through its value platform while maintaining strict execution discipline. Westlife reported revenue of ?6.71 billion for Q3 FY26, at the back of recovering guest counts. Same Store Sales Growth (SSSG) was at -3.2% for the quarter. However, positive momentum carried into January, with positive SSSG driven by a mid-single digit increase in guest counts,” the firm said.

Brokerage BOB Capital Markets says WEST is at early stages of a guest-count-led recovery, driven by sharper everyday value proposition and improved dine-in execution.

Macquarie said that the company saw positive same-store-sales growth on a mild single-digit drop in guest counts in January as it focused on affordability and product innovations. JPMorgan meanwhile noted that McDelivery platform has seen strong growth supported by customer acquisition and growth investments, seeing significant traction in December and January.