Super Hi International: A Post-Pandemic Powerhouse in Global Hot Pot Expansion

The global restaurant sector is navigating a complex post-pandemic landscape, where consumer behavior, supply chain dynamics, and international expansion strategies define success. Super Hi International (NASDAQ: HDL), the operator of Haidilao hot pot restaurants, has emerged as a standout player, leveraging its brand strength, operational discipline, and strategic international rollout to position itself for long-term outperformance. As the company prepares to release its Q2 2025 earnings on August 26, 2025, investors are keenly watching how its resilience and growth metrics align with the broader recovery of the global dining industry.

Brand Strength: A Pillar of Resilience

Haidilao's reputation as a “World's Strongest Restaurant Brand” (Brand Finance, 2024) is no accident. The brand's unique value proposition—combining warm, attentive service with high-quality, customizable hot pot meals—has fostered a loyal customer base. In Q1 2025, the company reported 7.8 million guest visits, a 6.8% year-over-year increase, despite a slight dip in average spending per guest to $24.2. This resilience is underpinned by Haidilao's ability to adapt to shifting consumer preferences, such as its “Pomegranate Project,” which explores new restaurant formats and menu innovations to attract diverse demographics.

Moreover, Haidilao's 4.0 average table turnover rate (up 0.1 from 2024) and 6.8% growth in same-store sales demonstrate its capacity to maximize revenue per location. These metrics are critical in a post-pandemic world where diners prioritize experiences over frequency, yet Haidilao's blend of social dining and service excellence continues to drive repeat visits.

Strategic International Rollout: Expanding Beyond Borders

Super Hi's international expansion strategy is a masterclass in market diversification. As of March 2025, the company operates 123 self-operated restaurants across 14 countries, including high-growth markets like North America (20 locations) and Southeast Asia (73 locations). This geographic spread mitigates regional risks and taps into the rising global demand for Asian cuisine.

The company's Q2 2025 earnings will likely highlight progress in lower-tier cities and emerging markets, where Haidilao's “value-driven” pricing and localized marketing campaigns have proven effective. For instance, in Q1 2025, North America's average spending per guest reached $39.6, the highest among regions, while Southeast Asia's 18.7 average spending reflects its affordability-driven growth. By balancing premium and value segments, Super Hi is optimizing its revenue streams without compromising brand equity.

However, challenges persist. The UK's underperforming stores and construction delays in new markets underscore the need for disciplined expansion. Investors should watch for Q2 guidance on how the company plans to address these issues while maintaining its aggressive rollout pace.

Operational Resilience: Balancing Costs and Growth

Super Hi's Q1 2025 results revealed a 4.1% operating margin, down from 6.6% in Q1 2024, due to increased labor costs (35.3% of revenue) and raw material expenses (34.0% of revenue). While these pressures are common in the post-pandemic labor and supply chain environment, the company's focus on management spreadsheets and dual management policies has improved operational efficiency.

The Q2 earnings report will be pivotal in assessing whether these initiatives translate to margin stabilization. Analysts project an EPS of $0.20 for Q2 2025, aligning with the company's Q1 performance. If Super Hi can maintain its 27% Adjusted EBITDA margin (as seen in prior quarters), it would signal strong cost control and scalability, critical for sustaining growth in a competitive sector.

Investment Thesis: Positioning for Long-Term Outperformance

Super Hi International's combination of brand strength, strategic international expansion, and operational adaptability positions it as a compelling long-term investment. Key catalysts include:
1. Global Hot Pot Trend: The global hot pot market is projected to grow at a CAGR of 6.5% through 2030, driven by health-conscious consumers seeking fresh, interactive dining experiences.
2. Diversified Revenue Streams: Beyond restaurant sales, Haidilao's delivery business (up 37.9% YoY in Q1 2025) and branded food products (up 22.7% YoY) provide additional growth avenues.
3. Capital Efficiency: With $393 million in unrestricted cash and a debt-free balance sheet, Super Hi has the flexibility to reinvest in high-return markets or return capital to shareholders.

Risks to consider include macroeconomic headwinds (e.g., inflation, labor shortages) and regional underperformance. However, the company's proactive approach to cost optimization and its focus on high-growth markets mitigate these concerns.

Conclusion: A Hot Pot for Investors

Super Hi International's Q2 2025 earnings will offer critical insights into its ability to balance growth and profitability in a post-pandemic world. For investors seeking exposure to a resilient, globally diversified restaurant chain with a proven track record of innovation, HDL presents an attractive opportunity. As the company continues to refine its international rollout and strengthen its operational margins, it is well-positioned to outperform in a sector still finding its footing in the new normal.