When Burgers Beat Pizzas

Indians seem to have chosen burgers over pizzas. At least, the same-store sales of two quick service restaurant chains suggest so.

Same-store sales, a key operating metric for retail outlets, grew 5 percent in October-December for Westlife Development Ltd., which operates McDonald’s outlets in south and west India. The company posted a growth despite a cash crunch triggered by the government’s decision to scrap old high-value currency notes.

Jubilant FoodWorks, however, recorded its worst performance in nine quarters as its same-store sales contracted 3.3 percent in the third quarter. That compares to a 2 percent growth a year ago.

In five of the last eight quarters, Westlife Development’s same-store sales growth has been higher than that of Jubilant FoodWorks.

The stock prices of the two companies have tracked the trend.

Over the past six months, shares of Westlife Development have gained nearly 5 percent, while Jubilant FoodWorks has fallen 16.5 percent. The gap between the two has widened over the last one month.