Kyochon F&B Q3 Operating Profit Rises 9.6% YoY to KRW 12.3 Billion

Revenue rises 6.9% to KRW 144.5 billion
Summer peak-season demand grows
Stronger menu offerings and marketing pay off
Global and new businesses also boost sales

Kyochon F&B, which operates Kyochon Chicken, improved its profitability in the third quarter of this year, driven by strong sales during the summer peak season and better results from its overseas subsidiaries.

Kyochon F&B disclosed on November 6 that its consolidated operating profit for the third quarter of this year was provisionally tallied at KRW 12.3 billion, up 9.6% from the same period last year. Revenue rose 6.9% to KRW 144.5 billion over the same period.

Kyochon F&B's headquarters in Seongnam, Gyeonggi Province. Courtesy of Kyochon F&B.

Kyochon F&B said sales growth was driven by summer peak-season demand, including around Sambok days, the launch of new menu items, and celebrity and sports marketing and promotions. Growth in new business revenue also contributed to the improved results. This included the normalization of global store operations and expansion of the store network in China and the United States, the opening of new locations for Memil Danpyeon, a buckwheat cuisine brand, and increased supply volumes in the alcoholic beverages and eco-friendly packaging businesses.

Kyochon plans to continue promoting new products and marketing to meet year-end peak-season demand in the fourth quarter, while focusing on stabilizing the supply of raw and subsidiary materials and strengthening the competitiveness of its franchise business. In its global business, the company plans to open new locations in Japan in the first half of next year, expand its stores in existing markets such as China and Southeast Asia, and explore entry into new countries. In its new business segment, it plans to build infrastructure for franchising Memil Danpyeon and develop new dining concepts and brands.

A Kyochon F&B representative said, "We will strengthen the foundation of our domestic franchise business while expanding the growth base of our global and new business segments, and work to improve profitability over the medium to long term through efficient cost management."

This content was produced with the assistance of AI translation services.