Food chains dish out good news

Tam Jai International (2217) said its pretax profit for the three months ended June increased by HK$31 million compared to the quarter a year ago, attributing the growth mainly to the city's recovery aside from the effect of government subsidies.

The casual restaurant chain's revenue for this quarter jumped by 15.4 percent to HK$687 million from HK$595 million for the same period of the previous fiscal year.

Sales also grew in the mainland market for the period, thanks to increased number of restaurants and cost control measures the company adopted in the mainland.

The overseas profit of its Japanese parent company Toridoll Holdings rose 83.2 percent to 742 million yen (HK$ 39.99 million) for the first three months of its fiscal year.

Meanwhile, Tai Hing (6811) yesterday said it expects to swing to a net profit of up to HK$47 million for the first half of the year from a net loss of HK$52 million a year ago.

The restaurant chain attributed the improvement to a multi-brands strategy, enhanced products and increased business days as well as a recovery in the local market.

The gross profit margin widened as a result of a series of cost-control measures tied to new store locations, food costs, organizational structure and restaurant network.