Restaurants are closing again.
Following Haidilao’s previous announcement of closing 300 stores, Xiabu Xiabu, the “first share of chain hot pot”, announced on March 11 that the company closed 230 stores in 2021.
Meanwhile, Xiabu Xiabu expects a net loss of RMB 275 million to RMB 295 million in 2021, mainly due to the closing of stores.
reappearance of closing trend
On March 11, Xiabu Xiabu announced that the company expects a net loss of about 275 million yuan to 295 million yuan in 2021, while the net profit in 2020 is 11.49 million yuan.
Picture: sipping announcement
As for the reasons for the loss, Xiabu Xiabu said in the announcement: first, the one-time loss of long-term assets caused by the closure of about 230 restaurants throughout the year and the provision of impairment losses caused by the decline in the operating performance of some restaurants, totaling about 220 million yuan; Two, in 2021, restaurants in some areas were still affected by the epidemic of New Coronavirus pneumonia and could not be fully opened.
From the above reasons, the most important one is to close 230 stores. In fact, he Guangqi, chief executive of Xiabu Xiabu, revealed in an interview with the media last year that Xiabu Xiabu will close 200 loss making stores in order to “stop bleeding by breaking its arms” because “some stores have suffered losses due to serious location errors”.
In fact, not only Xiabu Xiabu, a hot pot giant, announced its closure, but Haidilao also closed more than 300 stores in 2021, resulting in related losses of 3.3 billion yuan to 3.9 billion yuan.
Picture: undersea fishing announcement
However, it should be noted that Sipu Sipu will continue to open new stores in 2022 after closing 230 stores in 2021. The company will continue to adopt a cautious attitude of raising the opening rate of new stores in 2022, and continue to raise the opening rate of new stores
From this statement, Xiabu Xiabu closes stores with poor operating efficiency and wrong location, so as to pack light, but it still needs to wait for the actual landing effect.
share price has plummeted
Under the tide of closing stores, the share prices of Haidilao and Xiabu are also unsatisfactory.
Haidilao’s share price has fallen by more than 83% since the beginning of 2021, and its share price has fallen from HK $85 to HK $13.
Picture: China stock market news
In contrast, sipping is worse. Since the beginning of 2021, Sipu Sipu has experienced the largest decline of more than 86%, and its share price has fallen from nearly HK $27 to less than HK $4.
Picture: China stock market news
In this regard, Guosen Securities Co.Ltd(002736) pointed out that the epidemic has hit the catering industry hard, adjusted the industry valuation to a lower position, and the prospect of industry recovery is still clear. With the improvement of vaccination rate, the interference of the epidemic on social and economic activities is expected to gradually weaken. After the severe impact of the epidemic, the valuation level of the catering service industry has dropped to a low level, and the investment value has begun to show.
