Kyochon Raises Honey Combo Price, Operating Profit Increases by 181%

Kyochon F&B, Operating Profit Rises from 8.8 Billion KRW to 24.9 Billion KRW
Sales Decrease 14% Due to Boycott Impact
Sales per Store Around 750 Million KRW

Kyochon F&B, the operator of Kyochon Chicken, succeeded in strengthening its fundamentals as operating profit surged despite a decline in sales due to price increases.

Kyochon F&B announced on the 7th that its consolidated operating profit last year was 24.9 billion KRW, a 181.9% increase compared to 8.8 billion KRW the previous year. On the other hand, sales decreased by 14% from 517.5 billion KRW to 445 billion KRW. Net profit also rose by 158.6% to 12.8 billion KRW.

Kyochon Chicken, which has held the number one position in the chicken industry for nearly 10 years, faced backlash such as boycotts after raising prices by up to 3,000 KRW in April last year. As a result, it lost the top spot in the industry to bhc and saw a decline in sales, but profitability is understood to have improved.

A Kyochon F&B official said, "If we had pursued a franchise expansion strategy, sales would have increased significantly and it would not have been difficult to regain industry ranking, but we did not increase stores to protect the operating rights of franchisees," adding, "Chairman Kwon Won-gang's management philosophy prioritizes franchisee profits."

Kyochon F&B explained that while recovering operating profit through sound management, it maintained a single-digit operating profit margin (about 5.6%). They added that last year, sales per store are expected to remain at around 750 million KRW, the highest in the chicken franchise industry.

A Kyochon F&B official stated, "This year, we plan to accelerate our global market expansion and broaden our scope with new businesses such as 'Memildanpyeon' to capture both sales and profits."