14.5% Increase Compared to Last Year
Operating Profit Turns Positive from Previous Quarter Deficit
"Q4 Sales Expected to Improve Thanks to Byeon Woo-seok"
In the third quarter of this year, Kyochon Chicken recorded its highest sales in seven quarters since the fourth quarter of 2022.
Kyochon F&B, the operator of Kyochon Chicken, announced on the 11th that its consolidated sales for the third quarter reached 127.6 billion KRW, marking a 14.5% increase compared to the same period last year.
Operating profit for the same period was 7.6 billion KRW, a 10.7% decrease compared to the previous year, but unlike the second quarter, which posted an operating loss of -9.9 billion KRW, it successfully returned to profitability. In the second quarter, Kyochon F&B experienced a loss due to one-time costs associated with converting franchise regional headquarters to direct management. A Kyochon F&B representative explained, "As the regional conversion of franchise headquarters was completed in July, one-time costs were reflected in the third quarter as well, resulting in a decrease in operating profit compared to the previous year."
Kyochon F&B attributed the strong sales of Kyochon Chicken to increased sales volume during the summer peak season, including the Boknal period. Additionally, the positive reception of the newly launched 'Kyochon Oksusu' in July contributed to the sales growth.
Furthermore, the continuous strengthening of overseas business (77 stores in 7 countries as of the end of the third quarter) led to increased related export revenue, and the activation of the Kyochon order app (with a cumulative membership of 5.86 million as of the end of the third quarter), along with the strong performance of various new businesses such as buckwheat noodles, sauces, craft beer, and eco-friendly packaging, also contributed to the sales increase.
Meanwhile, Kyochon F&B expects strong performance in the fourth quarter as sales continue to rise, considering the peak season. In particular, the new advertising campaign featuring the 'rising star' actor Byun Woo-seok, launched last month, is expected to contribute to improved brand awareness. Additionally, the highly successful postseason of professional baseball (KBO League) in October and various autumn sports events held successfully are also anticipated to have a positive impact.
Regarding overseas business, Kyochon Chicken plans to continue expanding its global operations by ▲continuously expanding stores in Asian countries where it has entered, ▲pursuing new developments in Southeast Asian regions, and ▲preparing for business expansion through the renewal of directly operated stores in the United States.
A Kyochon F&B representative stated, “Domestic business continues to show steady growth, and overseas and new businesses are also performing well, resulting in the highest quarterly sales since the fourth quarter of 2022. In the fourth quarter, we aim for solid growth through the effects of new menu advertising, management efficiency from the direct management conversion of franchise regional headquarters, and the continuously expanding global business.”
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