"Kyocone F&B, Structural Growth Potential... This Year's Sales Expected to Increase 13.9% YoY"

[Asia Economy Reporter Ji-hwan Park] Hanwha Investment & Securities announced on the 27th that Kyochon F&B achieved the operating performance targets set at the time of its listing last year. Kyochon F&B recorded consolidated sales of 447.6 billion KRW and operating profit of 41 billion KRW last year. These figures represent growth of 17.7% and 4.3%, respectively, compared to the previous year.

There is also an analysis that Kyochon F&B's structural growth is possible in the future. Nam Seong-hyun, a researcher at Hanwha Investment & Securities, stated, "With the expansion of the food delivery market, the online food delivery market in 2020 reached approximately 17.3 trillion KRW, showing a growth rate of 78.0% compared to the previous year," adding, "Although there may be a temporary effect due to COVID-19, the compound annual growth rate over three years was 85.2%, and market share within the dining industry continues to expand."

Researcher Nam said, "Kyochon F&B's franchise store delivery ratio is known to be about 80%," and added, "Considering that the franchise store delivery environment is improving and related demand is increasing, the positive effects from the expansion of the food delivery market are expected to continue."

Additionally, the increase in sales per store is also a positive aspect. Last year, Kyochon F&B's sales per store were approximately 740 million KRW, up 13.9% from the previous year. Researcher Nam explained, "The reason for the sales increase is the transition to medium and large-sized stores, and the fact that supply is not keeping up with demand, which is driving up franchise store sales."

The growth trend due to new store openings is also continuing. Kyochon F&B opened 112 stores last year, securing a total of 1,269 stores.

Researcher Nam emphasized, "Despite the expansion of the store network and store area, sales per store are rising," and added, "Considering that the cannibalization effect on existing commercial areas is limited despite recent aggressive store openings, the new store opening strategy is expected to remain effective for the time being."

Kyochon F&B's sales this year are estimated to grow 13.9% year-on-year to 510 billion KRW, with operating profit expected to exceed 50 billion KRW.

This content was produced with the assistance of AI translation services.