Hong Kong fast food chain Fairwood (0052) may record a decrease of 50 to 60 percent year-on-year in net profit for the six months ending on September 30, the company announced yesterday.
The decrease was mainly attributed to the northbound spending trends of locals, consumption downgrade in both Hong Kong and the mainland and closure of underperforming stores, which led to an increase in related expenses and impairment provisions compared to last year, the firm said.
The interim results are expected to be published around the end of November.
Earlier, Tam Jai International (2217) also issued a profit alarm. It expects to record a decrease of approximately 50 to 60 percent year-on-year in net profit for the six months ending on 30 September, partly due to northbound consumption.
In other news, Yum China (9987), the parent of many fast food chains in China including KFC and Pizza Hut, saw its net profit in the third quarter jump by 22 percent to US$297 million (HK$2.31 billion) year-on-year. The company anticipates it will change up its mix of franchises, which look to be gradually comprised of 40 to 50 percent KFC and 20 to 30 percent Pizza Hut over the next few years.
June Chen
The northbound wave has hurt Fairwood. Sing Tao
