Super Hi International Holding Ltd. (NASDAQ: HDL) reported third‑quarter 2025 results that showed revenue of $214.0 million, a 7.8% year‑over‑year increase from $198.6 million in the same period last year. Operating income fell to $12.6 million, translating to an operating margin of 5.9%, down from 7.5% in Q3 2024. The company’s sequential performance, however, was strong: operating income grew 240.5% from the prior quarter, and the operating margin improved by 4.0 percentage points, indicating that the company is managing its cost base more effectively as it expands its restaurant network.
During the earnings call, CEO Lijuan Yang highlighted a 2.3% rise in same‑store revenue and a 0.1‑table‑turn increase in overall table turnover, bringing the average daily table turnover to 3.9 times versus 3.8 times in Q3 2024. Guest visits climbed 9.5% year‑over‑year, driven by a 5.1% increase in revenue from Haidilao restaurant operations and a 9.5% rise in delivery and other business segments. The company reiterated its focus on digital operational tools and the “Pomegranate Plan,” a strategic initiative aimed at improving efficiency across its 126 international Haidilao restaurants.
Margin compression was largely attributable to higher raw‑material and labor costs, increased outsourcing, and lease expenses associated with the company’s expanding footprint. A significant foreign‑exchange loss also weighed on net profit, contributing to a sharp decline in earnings compared with the prior year. Despite these headwinds, the sequential improvement in operating income and margin suggests that the company’s cost‑control measures and operational efficiencies are beginning to offset the inflationary pressures it faces.
CEO Lijuan Yang emphasized that the “Pomegranate Plan” will continue to empower frontline store management through a digital and intelligent middle platform, while the company actively expands its business and explores new opportunities globally. She noted that the company’s digital initiatives are expected to drive further operational efficiencies and support the continued growth of both its restaurant and delivery businesses.
The Q3 results illustrate a company that is growing its top line while navigating significant cost pressures. The sequential gains in operating income and margin signal that the company’s expansion strategy and digital investments are starting to pay off, but the year‑over‑year decline in net profit underscores the need for continued focus on cost management and foreign‑exchange risk mitigation. Investors will likely view the company’s ability to sustain revenue growth and improve operational efficiency as positive signs, while remaining cautious about the impact of ongoing cost inflation and currency volatility on profitability.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.