New Delhi: Global fast food chain McDonald’s subsidiary in India posted its first-ever profit after 22 years of business in the country. The company managed to earn a net profit of Rs 65.2 lakh in FY 18 after making a provision of Rs 198.2 crore in its financial statements in June to cut back losses accumulated due to a legal battle with estranged franchise partner CPRL.
The local unit of Chicago-headquartered fast-food giant posted a net profit of Rs 65.2 lakh during FY17-18, compared with a net loss of Rs 305 crore a year ago, according to its latest filings with the Registrar of Companies.
“The company has not only been able to stem any further erosion of its net worth but has also been able to successfully reverse the trend of erosion through the infusion of fresh capital,” said McDonald’s India, in its regulatory filing.
However, the company, which started India operations in 1996, has been involved in a long-drawn legal battle with Connaught Plaza Restaurants (CPRL). The latter is McDonald’s licensee partner in North and East India.
There was a strong revival last fiscal when most quick-service restaurants posted high samestore sales growth, helped by a surge in discount-driven footfalls at malls and greater presence in new markets.