It is reported that since January 24, most of the stores in the mainland have voluntarily suspended business. From February to March, the company was most seriously affected by the epidemic. Since then, the operating performance of the stores has gradually improved. During this period, Gabu Gabu implemented a number of mitigation measures, including promoting non-contact takeout service, promoting its own takeaway app and selling raw materials of dishes in online shopping malls, sharing employees and store staff with other companies, negotiating to reduce store rent, implementing self-service ordering system in stores, and closing stores that failed to meet expectations.
At the same time, the epidemic also affected the opening time of the companys new stores, but Sipu said it would continue to actively open new stores in the future and promote the expansion of the store network.
In any case, the impact of the epidemic on Sipu is undoubtedly huge, but before the outbreak of the epidemic, the profitability of Sipu has begun to decline.
At the same time, the turnover rate and the same store sales growth rate of Xiabu and Xiabu restaurants have declined, of which the turnover rate decreased from 2.8 times / day in 2018 to 2.4 times / day; the growth rate of same store sales decreased from 2.1% in 2018 to 1.4% in 2019.
Waterloo of catering enterprises with Hong Kong shares
On July 6 and July 7, Haidilao issued a profit warning notice and a profit warning supplementary announcement. According to the profit forecast released by Haidilao, as of June 30, 2020, the companys revenue has decreased by about 20% compared with the same period in 2019, and the owners who have obtained about 911 million yuan should account for the profits, and the company is expected to lose in the first half of the year.
However, one day later, Haidilao issued a supplementary profit warning notice. The company said that for the six months ended June 30, 2020, the groups expected net loss ranged from about $900 million to $1 billion.
According to the announcement, most of the stores in Chinese mainland are closed from January 26, 2020 to March 12th.
Although the companys store performance is gradually improving after re opening, the extent of the companys business recovery and the time required for recovery are still uncertain. We are still actively opening new stores and continue to promote the expansion of Haidilaos store network, Haidilao said
In addition, the profit warning issued by Jiumao, a Hong Kong stock catering brand, also shows that the total revenue in the first half of this year is expected to decrease by about 23% compared with the same period in 2019. According to the supplementary announcement, its net loss is expected to be no more than 120 million yuan, while its profit in the same period of 2019 is 102 million yuan.
The latest data released by Weiqian China (0538. HK) also shows that the same store sales decreased by 38.9% year-on-year in the three months ended June 30, 2020, and the groups fast casual restaurant business sales decreased by 37.6% year-on-year.
For the overall performance of catering enterprises, in the view of securities analysts, the impact of the epidemic on catering enterprises is inevitable in the short term, but in the long run, it depends on the development of individual enterprises.
In the medium and short term, the expansion of chubby and Xiabu stores, and the long-term perspective of takeout and retail business, the impact of this years epidemic on the short-term performance of the catering industry is inevitable. However, the company has made full use of the leading advantage of hotpot track, expanded the takeout business, and actively responded to the impact of the epidemic, and gave the company a 20 times valuation in 2021. Northeast Securities analysts said in the research report.