Affected by social movements, the economy turned significantly worse, the public’s consumer sentiment was greatly reduced, and the retail catering industry was the first to bear the brunt
After the early fast-food stocks (20172) issued a profit warning, everyone (00341) also warned yesterday, estimated as of this year. For the six months ended on the 30th of the month, the net profit was about one-third less than that of the same period of last year. It was the first profit warning since the listing in 1986. Everyone pointed out that short-term and long-term measures will continue to be adopted to control costs and improve efficiency.
Everyone enjoys a net profit of 239 million yuan in the middle of the year. If it falls by one-third year-on-year, the interim net profit for the year will shrink to about 160 million yuan. Everyone explained that the decline in net profit was mainly due to the weak market sentiment during the period, the failure of sales to achieve growth, and the need to launch more value-added meals and promotions in order to maintain sales and market share, thus affecting profit margins. In addition, rental expenses and labor, etc. Operating costs have also continued to rise. In June this year, everyone said that in order to respond to the cautious consumer sentiment of the public, the Group launched a 25-yuan value-for-money menu, and recently launched a hot pot discount, which is available from 5 pm to 6 pm and sells for 53 yuan.
Fast food stocks have sounded the alarm
As of the end of September this year, there were 165 shops and 48 porridge noodles. There were 65 other brands in the same category including Shanghai, Rice Array, Spaghetti House and Oliver’s Super Sandwiches. Looking at the information, everyone’s profit for the first half of the year has regressed several times. For the last time, the half-year profit as of the end of September 2017 decreased by 11.3% year-on-year. As for the year when the profit decline was large, it was the half year of September 2003. The profit was regressed by 24.5% year-on-year, which was mainly dragged down by the SARS epidemic.
In fact, another fast-food stock has already issued a profit warning. As of the end of September this year, profit has recorded a significant decline year-on-year, mainly due to the impact of the new accounting standards on leasing that took effect on January 1 this year. As well as rising rents and wage costs, the gross profit margin fell.
Analytical materials are worse this month
Li Shengyang, director of the Research Department of Kangzheng Investment Research, said that the net profit of the company was reduced by one-third. The situation seems to be too big and too happy. The increase in the minimum wage in recent years has also continued to increase the operating costs of the catering industry.
Fast-food stocks have traditionally been regarded as a strong resilience share. Because of the economic downturn, the public will choose a cheaper place to eat, and fast-food stocks should not be too shocked. However, Li Shengyang pointed out that the economic slowdown in Hong Kong is different from the previous situation. It is mainly related to the protest activities. Some shopping malls in the demonstration area have been closed for business and shops have to close. It is expected that the business will be even worse in October.
Li Jiading’s Ding Club will be closed
In addition, the artist Ding’s Kitchen, owned by artist Li Jiading, announced on Facebook that the Ding Club will be closed on November 22 (Friday), mainly due to rising business pressure, but Dingye private kitchen and Ding Shangqi brother roast goose soup The museum will continue to operate.
Luo Guoan, president of the Hong Kong Restaurant and Food Association, added that some of the branches of the chain fast food group are located in first-line shops and shopping malls, which are easily affected by demonstrations. In the most recent half-month, the general restaurant business has decreased by 20%, but no layoffs have been seen. The incident subsided as soon as possible.