McDonalds India subsidiary posts net profit finally

After entering India more than two decades ago, burger and fries chain McDonald's posted its first profit during year-to-March 2018 amid a long-drawn legal dispute with one of its key licensee partners. The local unit of Chicago-headquartered fast food giant posted a net profit of $93,176 (Rs 65.2 lakh) during FY17-18, compared with a net loss of $43.5 million (Rs 305 crore) a year ago, according to its latest filings with the Registrar of Companies. The company has two partners in the country - North & East Business is operated by Connaught Plaza Restaurants (CPRL) while Westlife Development is the master franchisee in the western and southern markets. It entered India in 1996, and over the years, accumulated a net loss of $60 million (Rs 421 crore). There was a strong revival last fiscal when most quick-service restaurants posted high same-store sales growth, helped by a surge in discount-driven footfalls at malls and a greater presence in new markets. During the year, the company allotted shares worth $10 million (Rs 71 crore) to the parent company and also increased authorised capital by Rs 50 crore to $65 million (Rs 458 crore).