Super Hi International Holding Ltd. (HDL) Q4 2025 Earnings Call Transcript
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Overview
The earnings call summary indicates modest growth in customer spending and daily revenue, with strategic plans for expansion and technology integration. However, the Q&A reveals uncertainties, such as the lack of specific store opening targets and unclear management responses on profitability and underperforming stores. The geopolitical challenges and lack of clear guidance on future profitability also contribute to a neutral sentiment. Given the mixed signals, the stock price is likely to remain stable in the short term.
Key Financial Performance
Customer Traffic Customer traffic at Haidilao restaurant reached 8.31 million in Q4 2025, an increase of 3.89% compared to the same period in 2024. This was driven by improved table turnover rates and customer experience.
Average Table Turnover Rate The average table turnover rate at Haidilao restaurants was 4 turns per day in Q4 2025, an increase of 0.1 turns year-over-year. This improvement was attributed to enhanced customer service and operational efficiency.
Total Revenue (Q4 2025) Total revenue reached USD 230 million in Q4 2025, an increase of 10.2% compared to USD 208.8 million in Q4 2024. The growth was driven by store network expansion, improved table turnover rates, and increased customer traffic.
Total Revenue (Full Year 2025) Total revenue for 2025 was USD 841 million, an increase of 8% year-over-year. This growth was supported by increased customer traffic and the success of new initiatives like the Pomegranate Plan.
Takeout Revenue Takeout revenue for 2025 was USD 19 million, an increase of 68.1% year-over-year. This growth was driven by the launch of new takeout food categories and expanded delivery coverage.
Other Business Revenue Other business revenue for 2025 was USD 31.8 million, an increase of 61.4% year-over-year. This was mainly due to the Pomegranate Plan and the penetration of peripheral products like hot pot condiments.
Operating Profit (Full Year 2025) Operating profit for 2025 was USD 37.4 million, with an operating profit margin of 4.4%, a decrease compared to 2024. The decline was due to increased investments in customer and employee benefits.
Net Profit (Full Year 2025) Net profit for 2025 was USD 36.3 million, a significant increase compared to 2024. This improvement was mainly due to favorable global exchange trends.
Raw Material Costs Raw material costs accounted for 33.6% of revenue in 2025, an increase of 0.5 percentage points year-over-year. This was due to the optimization of dish quality and an increase in fresh product usage.
Employee Costs Employee costs accounted for 33.9% of revenue in 2025, an increase of 0.6 percentage points year-over-year. This was due to increased salaries, welfare, and daily care for employees.
Rental Expenses Rental expenses accounted for 2.9% of revenue in 2025, an increase of 0.3 percentage points year-over-year. This was attributed to store network expansion.
Depreciation and Amortization Depreciation and amortization accounted for 9.8% of revenue in 2025, a decrease of 0.6 percentage points year-over-year. This was due to revenue growth diluting the proportion of these expenses.
Other Operating Expenses Other operating expenses accounted for 11.3% of revenue in 2025, an increase of 1.4 percentage points year-over-year. This was due to investments in the Pomegranate Plan, brand building, and regional expansion.
Average Customer Spending (Q4 2025) Average customer spending in Q4 2025 was USD 25.4, an increase of 0.4% year-over-year. This was due to optimized dish structures and marketing measures.
Average Daily Revenue Per Restaurant (Q4 2025) Average daily revenue per restaurant in Q4 2025 was USD 18,800, a slight increase compared to the same period last year. This was driven by improved operational efficiency and customer traffic.
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Operating Highlights
Localized New Product Launches: Promoted over 1,000 optimized new products globally, focusing on fresh-cut food scenarios. Introduced fresh-cut beef and pork series with 57 SKUs across 13 countries, achieving a 12.21% click-through rate.
Takeout Innovations: Launched new takeout categories like spicy boiled food cups, fried snacks, wraps, and noodles. Expanded delivery coverage, leading to a 68.1% year-on-year increase in takeout revenue.
Store Network Expansion: Opened 13 new Haidilao stores in 9 countries, including the US, Canada, and Australia. Closed 9 stores in other regions due to lease expirations or strategic adjustments. Operated 126 stores overseas by year-end.
Pomegranate Plan: Transformed 3 Haidilao locations into second-brand operations. Revenue from related businesses increased by 61.4% year-on-year.
Employee Development: Enhanced employee benefits, training, and welfare. Built a diverse team with 90 reserve backbones, nearly half being foreign key staff.
Digitalization and Efficiency: Applied AI in management to improve operational efficiency. Expanded overseas membership to over 8.5 million.
Supply Chain Optimization: Increased production capacity of central kitchens and improved supplier management, offsetting gross profit pressures.
Customer and Employee Focus: Implemented strategies to benefit both customers and employees, improving service experience and operational vitality.
New Business Formats: Explored new formats like BBQ and Japanese Izakaya under the Pomegranate Plan, achieving single-store profitability in some cases.
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Risk or Challenges
Raw Material Costs: Increase in raw material costs due to optimization of restaurant dish quality and increase in the proportion of fresh products, leading to short-term cost fluctuations.
Employee Costs: Employee costs increased due to systematic salary and welfare adjustments and increased investment in daily care for employees, impacting overall profitability.
Operating Profit Margin: Operating profit margin decreased compared to the previous year, primarily due to increased investments in customer and employee benefits.
Pomegranate Plan and Brand Building: Increased operational expenses due to promotion of the Pomegranate Plan, brand building, and store expansion, leading to higher costs.
Exchange Rate Fluctuations: Net exchange losses in the fourth quarter due to revaluation impact of exchange rate fluctuations, affecting net profit.
Store Closures: Closure of 9 stores in various countries due to lease expirations and active adjustments, which could impact revenue and operational efficiency.
New Store Ramp-Up Period: Newly opened stores in certain regions are in the ramp-up period, leading to lower table turnover rates and revenue contributions.
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Guidance & Outlook
Employee Development: Continuously optimized salary, welfare, daily care, and training to enhance team belonging. Reserve backbones include foreign key staff for diversified management.
Frontline Management: Focus shifted to frontline stores, encouraging cross-departmental and cross-city inspections to extend management capabilities.
Customer Experience: Invested in differentiated service plans for various scenarios and promoted localized new product launches.
Supply Chain: Increased production capacity of central kitchens and improved bargaining power with suppliers.
Digitalization: Explored AI technology in management and integrated product and marketing coordination.
Store Network Expansion: Opened 13 new stores in 9 countries, closed 9 stores, and transformed 3 locations into second brand operations.
Pomegranate Plan: Implemented gradually, incubating prototype stores and exploring new formats overseas.
Revenue Growth: Total revenue for 2025 was USD 840.8 million, an increase of 8% year-on-year. Q4 revenue was USD 230 million, a 10.2% increase year-on-year.
Table Turnover Rate: Full year table turnover rate was 3.9 turns per day, with same-store turnover rate at 4 turns per day, both increasing by 0.1 turn compared to 2021.
Takeout Revenue: Increased by 68.1% year-on-year, reaching USD 19 million.
Other Business Revenue: Increased by 61.4% year-on-year, reaching USD 31.8 million.
Operating Profit Margin: Full year operating profit margin was 4.4%, with a recovery trend in the second half of the year.
Net Profit: After-tax net profit for 2025 was USD 36.3 million, showing significant improvement from 2024.
Store Network: Operated a total of 126 Haidilao stores overseas by the end of 2025.
Customer Traffic: Served 8.31 million customers in Q4, an increase of 3.89% compared to 2024.
Average Customer Spending: Increased to USD 25.4 in Q4, a 0.4% increase year-on-year.
Regional Performance: Asia showed the most outstanding performance with a table turnover rate increase to 5.1 turns per day.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:What is the store opening plan for the next three years, considering global geopolitical changes?
A:The company does not have a specific target for store openings and focuses on bottom-up decision-making. Most new stores will open in 2026, with East Asia being the most promising region. North America achieved a net increase in Q4, while Southeast Asia focuses on optimizing existing stores. The Middle East, Europe, and Australia are being monitored closely. Geopolitical frictions may pose short-term challenges, but decisions will be made by local managers based on their understanding of the local situation.
Q:How does the company evaluate brand equity and strengthen it in weaker markets?
A:The company evaluates brand equity through indicators such as natural growth of members, table turnover rates, local customer proportions, and word-of-mouth spread on social media. In weaker markets, strategies include localized products and services, scenario-based marketing, and patience in evaluating store performance. Mature markets like South Korea and Southeast Asia have strong brand awareness, while Japan is growing rapidly.
Q:What are the results and future plans for the Pomegranate Plan and single store models?
A:The Pomegranate Plan has shown progress, with some brands achieving single-store profitability. However, large-scale replication is not yet feasible. The company evaluates brands based on profitability without subsidies, replicability, and local team capabilities. Future plans include polishing successful projects, building support platforms, and improving replication efficiency. There are no clear acquisition plans currently.
Q:How does the company plan to balance customer experience, employee benefits, and operating indicators in 2026-2027?
A:The company aims to optimize investments while maintaining employee benefits and customer service quality. The expense ratio structure will be improved, focusing on input/output efficiency. Investments in brand building and consulting will be more precise, and the company will not set specific profit margin targets to avoid short-term profit-driven decisions.
Q:What is the company's approach to managing raw material costs and gross profit margin trends?
A:Raw material costs accounted for 33.6% of revenue in 2025, with a slight increase due to business expansion. The company focuses on centralized procurement, improving central kitchen capacity, and optimizing menu structures. The raw material-to-revenue ratio is expected to remain stable in 2026.
Q:What are the regional differences in store-level operating profit and margin, and what improvement measures are planned?
A:East Asia has the healthiest single-store model, with high table turnover rates and revenue. North America has high revenue but also high rent and labor costs. Southeast Asia has individual differences, with some stores underperforming. Improvement measures include product localization and service upgrades. Newly opened stores in North America need time to ramp up performance.
Q:How does the company address short-term geopolitical impacts on operations in the Middle East and Europe?
A:The company has authorized local managers to determine the pace and timing of operations. While short-term impacts are acknowledged, the company remains positive about the long-term potential of these markets and adopts a prudent, bottom-up approach.
Q:What is the company's strategy for improving table turnover rates and customer satisfaction?
A:The company focuses on optimizing time period structures, enhancing customer stickiness through digital tools, and enriching consumption scenarios. Pricing adjustments will be market-driven and sustainable, avoiding disorderly profit concessions.
Q:What is the company's approach to underperforming stores and store closures?
A:In 2025, the company closed 9 stores, with 3 converted to second brands. Decisions on underperforming stores are based on improvement potential, table turnover trends, and management or market-related issues. Stores showing positive turnaround trends are encouraged to improve further.
Q:Review of Unclear Management Responses
A:Management avoided providing specific figures for single-store models and regional store-level profit margins, citing differences among brands and markets. They also did not disclose the proportion of underperforming stores in the current network.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI technology
Australia Canada
BBQ spicy
CEO Super
Canada UAE
Chinese institution
Conference
Pomegranate Plan
application
basis
benefit employee
brand Pomegranate
capability
catering
contribution
coordination
cup
day increase
delivery
digitalization
division
evening
food
implantation
kitchen
launch
layout
mechanism
meeting
member
night snack
optimization
pilot store
power
scenario service
series
store term
takeout
team country
training
transformation
turn day
work
HDL Transcript
Super Hi International Holding Ltd. (HDL) Q4 2025 Earnings Call Transcript
Unknown3-31
The earnings call summary indicates modest growth in customer spending and daily revenue, with strategic plans for expansion and technology integration. However, the Q&A reveals uncertainties, such as the lack of specific store opening targets and unclear management responses on profitability and underperforming stores. The geopolitical challenges and lack of clear guidance on future profitability also contribute to a neutral sentiment. Given the mixed signals, the stock price is likely to remain stable in the short term.
Super Hi International Holding Ltd. (HDL) Q3 2025 Earnings Call Transcript
Unknown11-26
The earnings call summary provides a balanced view: there is an emphasis on customer and employee focus, technological advancements, and AI, which are positive. However, the lack of specific financial guidance, vague responses in the Q&A, and no new partnerships or significant strategic shifts contribute to a neutral sentiment. The company's focus on quality over speed and stable growth of new brands are positive, but the absence of aggressive expansion or clear financial targets tempers expectations, leading to a neutral stock price prediction.
HDL Report
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