Jiumaojiu's Margins May Improve Over Time -- Market Talk

Dow Jones
01 Apr

0410 GMT - Jiumaojiu International may see some business improvements in the long term despite near-term challenges, including declining transaction volumes weighing on same-store sales, Morningstar analyst Ivan Su says in a research note. Su says the Chinese restaurant operator is likely to improve margins over time by optimizing its store portfolio and controlling labor costs, while revenue growth may be boosted by a macroeconomic recovery. If meaningful stimulus measures from Beijing come through, restaurant chains are likely to be among the key beneficiaries, Su adds. Shares fall 0.7% to HK$2.86. (tracy.qu@wsj.com)

 

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April 01, 2025 00:10 ET (04:10 GMT)

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