This article only represents the author's own views.
As China’s dining-out industry rebounds from the depths of the pandemic, the hotpot chain Haidilao International Holdings Ltd. (6862.HK) has come to the table with a forecast of surging annual profits. The earnings for last year, once finalized, will add to a banquet of appetizing results from popular restaurant brands that have made it through the Covid crisis.
Earlier this month, the operator of China’s Pizza Hut and KFC outlets, Yum China (YUM.US; 9987.HK), posted an 87% year-on-year jump in annual profits to $827 million. Chains selling Chinese cuisine are also whetting appetites with talk of strong earnings recoveries last year, when they were released from Covid restrictions. Jiumaojiu (9922.HK), famous for its pickled fish, has predicted net profit growth for the period of at least 813%. Shenzhen-listed Quanjude Roast Duck (002186.SZ) has forecast a palatable profit of between 56 million yuan ($7.8 million) and 66 million yuan in 2023, coming back from a 278 million yuan loss the previous year. And Haidilao, known for its spicy hotpots and quirky customer service, has joined in with a positive earnings alert, predicting its profits jumped to at least 4.4 billion yuan last year, which would be a gain of 168%.