Haidilao Q2 rev up 8.5% YoY to $198.9mln.

• Super Hi International Holding Ltd. reports Q2 2025 revenue of $198.9 million, up 8.5% YoY. • The company opened 4 new Haidilao restaurants and closed 1 underperforming restaurant. • Total Haidilao restaurants increased to 126. • Average table turnover rate was 3.8 times per day. • Same-store table turnover rate was 3.9 times per day. • Total guest visits reached 7.7 million.

Super Hi International Holding Ltd. (NASDAQ: HDL) reported its unaudited financial results for the second quarter ended June 30, 2025, showcasing mixed performance with notable revenue growth and significant operational challenges.

The company reported a total revenue of $198.9 million, representing an 8.5% increase year-over-year (YoY) from $183.3 million in the same period of 2024. This growth was driven by a 6.9% increase in total guest visits to 7.7 million and a 5.3% increase in same-store sales to $170.2 million. During the quarter, Super Hi expanded its restaurant network by opening 4 new locations and closing 1 underperforming restaurant, bringing the total number of Haidilao restaurants to 126.

Despite the revenue growth, Super Hi faced significant operational challenges. Operating income declined by 56.5% to $3.7 million, with the operating margin shrinking from 4.6% to 1.9%. The decline in operating income was primarily attributed to rising input costs and strategic investments, with raw materials costs rising to 34.0% of revenue and staff costs increasing to 35.3% of revenue. The company attributed these increases to a benefit-sharing strategy aimed at enhancing customer and employee value.

The company reported a profit of $16.4 million for the period, compared to a loss of $0.1 million in the same period of 2024. This improvement was mainly due to a decrease in net foreign exchange loss of $22.8 million, primarily attributable to favorable foreign exchange fluctuations.

Management acknowledged the operational income decline but expressed confidence in their strategies, including the "Pomegranate Plan" for developing secondary brands and the "Woodpecker Plan" for targeting underperforming restaurants. They also emphasized the importance of technological innovation and applications to enhance organizational efficiency and address current market challenges.

Super Hi International's mixed Q2 2025 results present a complex financial picture with some concerning trends beneath the headline growth. While total revenue increased 8.5% to $198.9 million, the company's operating income plummeted 56.5% to $3.7 million, with the operating margin shrinking from 4.6% to 1.9%. The revenue growth was driven by modest restaurant expansion and same-store sales growth, while customer traffic increased 6.9% to 7.7 million visitors. However, the significant profit deterioration stems from two main factors: rising input costs and strategic investments.

Super Hi International's mixed Q2 2025 results highlight the challenges the company faces in balancing growth and operational efficiency. As investors await the company's earnings announcement on August 26, 2025, they will be closely watching for guidance on these challenges and the company's plans to address them.

References:

[1] https://www.benzinga.com/insights/earnings/25/08/47310935/a-glimpse-of-super-hi-internationals-earnings-potential
[2] https://www.stocktitan.net/news/HDL/super-hi-reports-unaudited-financial-results-for-the-second-quarter-6o46vj56u8jt.html