Shares of Westlife Foodworld which operates McDonald’s India saw its share surge up sharply after the company announced that its cheese quality has received a stamp of approval from the Food Safety and Standards Authority of India (FSSAI) and independent labs.

What Happened: FSSAI confirmed that McDonald’s India uses ‘100% Real Cheese’ in its products, according to a press release by Westlife Foodworld Limited. This confirmation was also backed by independent tests conducted by National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited labs.

The regulatory body stated that the products in question contain cheese or cheese products as a part of the composition and do not contain any cheese analogues or substitutes.

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McDonald’s India (W&S) sources authentic ingredients from globally recognized and approved suppliers. The company’s suppliers rigorously test their products sold to McDonald’s twice a year by independent NABL-accredited food testing labs, the company added in the press release.

Following the clean chit from FSSAI and NABL-accredited labs, McDonald’s India (W&S) has retained the term “cheese” in the names of its products containing cheese, reaffirming its commitment to transparency and consumer trust.

Shares of the company shot up sharply as soon as the announcement was made at around 2:00 pm. The stock surged up around 3% to hit an intraday high of ₹765.

This development comes in the wake of a controversy where the Maharashtra Food and Drug Administration (FDA) accused McDonald’s of using cheese substitutes, known as cheese analogues, in their food products. This led to the suspension of the license of a McDonald's outlet in Ahmednagar and prompted the chain to remove the word "cheese" from various menu items.

The FDA had accused McDonald's of failing to properly disclose the use of these substitutes on labels and display boards, misleading customers into believing they were consuming real cheese. The incident had a ripple effect on the fast-food industry, with shares of other fast-food restaurant chain operators tumbling as state authorities were reportedly set to launch inspections into food-quality standards.

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