High LeverageA debt-to-equity ratio near 2.7 indicates material leverage that constrains financial flexibility. Over the medium term this raises refinancing and interest-rate sensitivity, limits capacity for aggressive expansion, and increases the risk that earnings shocks will impair credit metrics.
Thin Net ProfitabilityDespite healthy top-line and gross margins, the nearly zero net margin shows limited retained profitability after operating, financing and non-operating costs. Persistently thin net earnings reduce reinvestment ability and shareholder returns, making growth reliant on external funding or margin recovery.
Franchise Concentration RiskBeing a regional master franchisee ties growth, product mix and pricing to McDonald’s corporate decisions and royalty/brand terms. This structural dependence limits autonomy on menu, pricing and margins, and exposes Westlife to brand-level regulatory or strategic changes beyond its control.