HK fast food chain Cafe de Coral sees doubling profit for April-September

Hong Kong fast-food chain operator Cafe de Coral (0341) said on Wednesday it expects half-year profit to more than double, driven by tighter cost controls and a stabilizing business in China.

Net profit for the six months ended September is projected to rise between 105 percent and 125 percent to a range of HK$95.8 million to HK$105.2 million, the company said in an exchange filing.

The restaurant group credited the turnaround to strategic shifts initiated in the second half of the prior fiscal year, including streamlining workflows and leveraging its supply chain scale across Hong Kong and China, and trimming low-productivity stores.

In its core fast-food segment, the company leaned on budget-friendly menu items and AI-driven analytics for its "Club 100" loyalty program to boost repeat business and improve its revenue mix. 

Operations in mainland China stabilized during the period, supported by online-to-offline (O2O) delivery sales and a shift toward an asset-light model as the group expanded across the Greater Bay Area. 

Cafe de Coral is scheduled to release its full unaudited interim results in late November.

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