Haidilao, as the star of the domestic hot pot industry, is considered a myth in the catering industry. But since the beginning of March this year, Haidilao's stock price performance is not so satisfactory, May 6, the day had plummeted 10%, from the high point of February 16 to May 7, Haidilao's shares fell to the waist, down as much as 47.47%, the market value of the shrinking 200 billion. The most important reason for such a plunge is still the decline in operating results, poor profits, while frequent negative news, goodwill is damaged. Today, I will nag you about this.

First, Haidilao poor performance.

Haidilao Group released its 2020 performance report in March, realized revenue of 28.6 billion yuan that year, an increase of 7.8% year-on-year, but the decline in net profit is alarming, the decline reached 86.86%, the annual net profit of only 309 million yuan. The reason for the poor performance is mainly due to the epidemic affecting store traffic and exchange rate changes.

Second, diversified cross-border operations, management costs increase.

Haidilao in recent years keen on cross-border, one after another launched a risotto, cover noodles, fried chicken and other food, and support a number of sub-brands such as ? New Qin brand noodle shop? I'm not sure if you're going to be able to get it right, but I'm sure you can. etc., involving a variety of fields such as noodle, flavorful snacks. These investments have brought huge management costs, resulting in an increase in the company's management costs. And Haidilao opening new stores has not slowed down, these will take up a lot of money, thus affecting the financial report.

Third, the decline of consumer reputation.

Haidilao due to emphasize its attentive service, let it once became the benchmark of the catering industry. However, in the face of performance pressure to take disguised price increases in the behavior of many consumers are dissatisfied, the average per capita consumption of 105.2 yuan in 2019, to reach 110 yuan in 2020, and due to the rapid rate of expansion, staff shortages occur from time to time, the quality of service inevitably also declined a lot.

While Haidilao's stock price collapsed relatively hard, but it is still second to none as a leading catering session, its supply chain advantage and efficiency as well as its scale, and relevant organizations are still optimistic about its long-term development.