BRIEF: Xiao Noodles profit jumps on growing store network
Noodle chain operator Guangzhou Xiao Noodles Catering Management Co. Ltd. (2408.HK) saidon Thursday it expects to report a 2025 profit of between 100 million yuan ($14 million) and 115 million yuan, up 64.7% to 89.5% year-on-year. It said its adjusted net profit will be between 125 million yuan and 140 million yuan, up 95.6% to 119.1% from a year earlier.
The company attributed the big increase mainly to rapid expansion of its store network, with the total number of outlets rising from 360 at the end of 2024 to 503 at the end of last year. At the same time, restaurants have been extending from prime city-center locations to surrounding areas, lowering rental costs and boosting margins. Stores in Hong Kong have delivered relatively higher profitability, with their contribution increasing as the number of outlets grows in the city. Further dilution of headquarters costs also contributed to overall profitability.
Xiao Noodles stock opened flat on Friday and closed at HK$5 by the midday break, up 3.73%.
By Lee Shih Ta
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