"Kyocheon F&B Benefits from Online Market Expansion... Expectation for Full-Scale Re-rating"

Kyochon F&B is introducing its new menu item, 'Kyochon Cheese Truffle Boneless,' on the 25th at the Kyochon Chicken City Hall branch in Jung-gu, Seoul. The 'Kyochon Cheese Truffle Boneless' features crispy and moist fried domestic chicken breast combined with the rich aroma of truffle and intense cheese flavor. Additionally, the new product comes with two types of dipping sauces by default, allowing customers to enjoy a more diverse taste experience. (Photo by Kyochon F&B)

[Asia Economy Reporter Park Jihwan] Hanwha Investment & Securities evaluated on the 18th that Kyochon F&B is structurally stabilizing its upstream industry and is becoming a highly reliable company through direct listing on the stock market.

Nam Seonghyun, a researcher at Hanwha Investment & Securities, stated, "Kyochon F&B is expected to maintain stable growth this year as well," adding, "The online delivery service market continues to expand, and it is anticipated that sales per store will increase due to the transition to large stores, along with the effect of expanding the store network through new store openings."

Researcher Nam emphasized, "Even considering that the online food service market experienced a temporary effect due to COVID-19 last year, it achieved high growth," and added, "The important point is that the expansion of the online food service market is a structural phenomenon." He explained that the market recorded an average annual growth rate of 85.2% over three years, and the market share of online food services within the dining industry is expanding. He also analyzed that the number of platform operators connecting these services is increasing.

Researcher Nam stated, "The possibility of valuation upgrades for dining franchise companies is considered high," and mentioned, "One reason is that the valuation levels assigned by external investors are rising."

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