Café de Coral’s profit doubles as store overhaul pays off
Hong Kong fast-food leader Café de Coral Holdings Ltd. (0341.HK) on Wednesday forecast it would post a profit of HK$95.8 million to HK$105.2 million ($15.75 million) for the six months through September, up 105% to 125% from HK$46.7 million a year earlier.
It attributed the improvement to improvements in its business model, rationalization of its store network and improving cost efficiency. New products and changes to its revenue mix helped drive its fast-food business, while its Club 100 loyalty program expanded its membership base using AI-powered customer analytics.
The company also consolidated less productive outlets while advancing its digital transformation and improving supply chain efficiency. Its Mainland China business gradually stabilized, with improvements in both sales and profitability. It continued developing an asset-light operating model and cautiously expanding in the Greater Bay Area in South China’s Guangdong province. Its casual dining and institutional catering businesses also increased their contributions to the company’s profit.
Café de Coral shares opened higher on Thursday and were up 2.74% at HK$6.185 by the midday break. The stock is up 25.8% year-to-date.
By Lee Shih Ta
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