[Click e-Stock] "Mom's Touch, Sales Recovery from Q2... Target Price Up"

[Asia Economy Reporter Song Hwajeong] IBK Investment & Securities forecasted on the 22nd that Mom's Touch's sales will show a recovery trend starting from the second quarter and raised the target stock price from the previous 3,800 KRW to 4,000 KRW. The investment opinion was maintained as 'Buy.'

It is expected that Mom's Touch's sales in the first quarter of this year will slightly decrease, but significant profitability improvement will continue. Kim Taehyun, a researcher at IBK Investment & Securities, said, "Mom's Touch's consolidated sales for the first quarter are estimated at 66 billion KRW, down 3.4% year-on-year, and operating profit is estimated at 7.4 billion KRW, up 60.1%. Although sales will slightly decrease due to the contraction of the dining-out market and differences in the number of business days, significant profitability improvement will continue due to improvements in cost structure and reductions in administrative expenses."

The number of franchise stores continues to show steady growth. From the beginning of this year to March, the number of Mom's Touch franchise stores increased by 19, reaching 1,333 at the end of the first quarter. In particular, the trend of opening delivery-specialized stores is increasing. As of the end of last year, stores under 20 pyeong accounted for about 20%. Researcher Kim said, "About 70 new stores can be opened mainly in the metropolitan area this year," adding, "There is high franchise demand for small stores, so the delivery-specialized franchise business is expected to quickly settle starting this year."

There is a valid expectation of sales recovery due to the recovery of the dining-out market in the second half of the year. IBK Investment & Securities projected Mom's Touch's consolidated sales and operating profit for this year at 294.9 billion KRW and 32.9 billion KRW, respectively, which are increases of 3.1% and 25.2% compared to the previous year. Researcher Kim explained, "Sales of new Cyber Burger menu items, including the recently launched 'Cyplex Burger,' are performing well, so sales are expected to recover from the second quarter," adding, "As vaccine supply expands, expectations for sales improvement linked to the recovery of the dining-out market will strengthen toward the second half."

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