Kyochon F&B Reports Q1 Operating Profit of 5.8 Billion KRW, Down 32.4% YoY (Comprehensive)

Kyochon F&B, the operator of Kyochon Chicken, announced on the 15th that its operating profit for the first quarter of this year recorded 5,861,579,109 won, down 32.4% compared to the same period last year.

Kyochon Chicken Sookdae Branch. [Photo by Kyochon F&B]

During this period, sales amounted to 120,360,854,414 won, down 8.2% from the first quarter of last year, and net profit also decreased by 32.2% to 4,578,051,260 won.

The decline in profitability is attributed to a roughly 2 billion won increase in one-time selling and administrative expenses such as advertising and commission fees, despite cost improvements due to reduced raw material procurement costs.

However, profitability is expected to improve in the second quarter of this year as the effects of price increases are reflected.

Last month, Kyochon Chicken raised chicken prices by up to 3,000 won. Major menu items using whole chickens and parts were adjusted upward by 3,000 won, while other menu items increased by 500 to 2,500 won depending on size and existing price range. The franchise supply price of raw chicken was also raised accordingly.

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