Kyochon F&B Q1 Operating Profit at 10.7 Billion KRW, Down 10% Year-on-Year

Sales of 124.6 Billion KRW, Net Profit of 6.6 Billion KRW

Kyochon F&B, the operator of Kyochon Chicken, announced on May 14 that its consolidated operating profit for the first quarter of this year was provisionally tallied at 10.7 billion KRW, a decrease of 10.4% compared to the same period last year.

During the same period, sales increased by 10% to 124.6 billion KRW, while net profit for the period decreased by 15.8% to 6.6 billion KRW.

Kyochon Pangyo New Headquarters. Kyochon F&B

Kyochon F&B explained, "Although the first quarter is considered the off-season for the chicken industry, sales rose due to increased chicken sales driven by the launch of new menu items such as the Wing Series and Kyochon Yangnyeom Chicken." The company added, "Operating profit declined as labor and logistics (delivery) costs increased due to the conversion of franchise regional headquarters to directly managed stores, and advertising and promotional expenses also rose as a result of new menu promotions."

Meanwhile, Kyochon F&B also announced that its store closure rate for the first quarter of this year was 0.2%, marking the lowest level in the industry.