Haidilao's 2025 Revenue Grows Marginally by 1.1%, Net Profit Declines 14% Under Pressure, Takeout Business Revenue Surges Over 100% | Financial Report Insights

Faced with fierce competition in the restaurant industry and a sluggish consumer environment, Haidilao maintained its basic operations in 2025.

On Tuesday, Haidilao released its full-year 2025 performance report, with total revenue reaching 43.225 billion yuan, a 1.1% increase year-over-year. Profitability faced significant pressure—core operating profit (non-IFRS) declined 13.3% to 5.403 billion yuan, and net profit decreased 14.0% to 4.042 billion yuan.

The main reason for the profit decline was the continued decrease in table turnover rate. In 2025, the overall table turnover rate for self-operated Haidilao restaurants was 3.9 times per day, further down from 4.1 times in 2024. The total number of customer visits for the year decreased by 7.5% to 383.9 million. Meanwhile, the group increased investment in product innovation and scene renovations, raising raw material and other operating costs, which exerted a double squeeze on profits.

Despite this, the group showed bright spots in structural transformation. Delivery revenue surged 111.9% year-over-year to 2.658 billion yuan, other restaurant brands under the “Red Pomegranate Plan” grew 214.6% to 1.521 billion yuan, and franchise revenue jumped from 16.71 million yuan to 270 million yuan. Diversified revenue streams are rapidly expanding. The board recommended a final dividend of HKD 0.384 per share, demonstrating confidence in future operations.

Revenue Structure: Main Business Shrinks, New Businesses Grow Rapidly

In 2025, total operating revenue from Haidilao restaurants (including self-operated and other restaurants) was approximately 40.584 billion yuan, but revenue from self-operated Haidilao restaurants declined from 40.40 billion yuan to 37.543 billion yuan, a 7.1% decrease, mainly due to declining table turnover and a reduction in self-operated stores (some converted to franchise).

In stark contrast, emerging business segments experienced strong growth:

• Delivery Business: Revenue of 2.658 billion yuan, up 111.9% year-over-year, accounting for 6.1% of total revenue, up from 2.9%. The “Filling Meal” business is the main driver, with over 1,200 delivery outlets nationwide.

• Other Restaurant Operations (under the Red Pomegranate Plan): Revenue of 1.521 billion yuan, up 214.6%, accounting for 3.5% of total revenue, up from 1.1%.

• Seasoning and Food Ingredient Sales: Revenue of 1.155 billion yuan, up 100.8%.

• Franchise Business: Revenue of 270 million yuan, a significant increase from 16.71 million yuan, with franchise restaurants expanding from 13 to 79.

The contribution of new businesses to total revenue has increased from about 5.5% to approximately 13.1%, indicating a substantial shift in the group’s revenue structure.

Table Turnover and Same-Store Sales: All Under Pressure, Hong Kong, Macau, and Taiwan Relatively Stable

Table turnover rate is a key indicator of Haidilao’s operational quality, and 2025 data is concerning.

By city level, the table turnover rates were 3.9, 3.9, and 3.9 times per day for first-tier, second-tier, and third-tier and below cities, respectively, down from 4.0, 4.1, and 4.0 in 2024, with the most significant decline in second-tier cities. The Hong Kong, Macau, and Taiwan region maintained a stable rate of 4.3 times per day, the only region to remain steady.

Same-store sales data is also not optimistic. The overall average daily sales of 1,135 stores decreased from 852,000 yuan to 795,000 yuan, and total same-store sales dropped from 35.269 billion yuan to 32.895 billion yuan, a decline of about 6.7%. Among them, the average daily sales in second-tier cities fell from 839,000 yuan to 762,000 yuan, the largest decrease.

Customer per capita spending remained relatively stable, slightly rising from 97.5 yuan to 97.7 yuan. Mainland China restaurants maintained at 95.7 yuan, indicating that the average check is not a drag factor; the core issue is the decline in customer flow.

Cost Structure: Rising Raw Material Costs, Significant Relief in Depreciation Pressure

In 2025, costs showed a differentiated trend:

• Raw Materials and Consumables: Increased from 16.211 billion yuan to 17.526 billion yuan, with the proportion of revenue rising from 37.9% to 40.5%. The increase is mainly due to two reasons: first, the higher proportion of non-core revenue from delivery and other restaurants (these businesses have relatively higher raw material costs); second, the group actively optimized menu structures and launched fresh-cut series and high-quality ingredients, raising ingredient costs.

• Employee Costs: Slightly decreased from 14.113 billion yuan to 14.073 billion yuan, accounting for 32.6% of revenue, with a total of 125,620 employees, showing relatively stable cost control.

• Depreciation and Amortization: Significantly decreased from 25.585 billion yuan to 21.821 billion yuan, a 14.7% reduction, accounting for 5.0% of revenue, mainly because prior restaurant assets have been fully depreciated, providing a positive contribution to profits.

• Other Expenses: Increased from 18.641 billion yuan to 22.701 billion yuan, with the proportion rising from 4.4% to 5.3%, mainly due to increased delivery platform fees and promotional expenses by about 2.942 billion yuan, as well as rises in administrative and warehousing costs.

Multi-Brand Strategy: “Red Pomegranate Plan” Enters Market Expansion Phase

2025 is a critical year for Haidilao’s multi-brand strategy. By the end of the year, the group operated 20 sub-brands with a total of 207 restaurants, covering segments such as seafood stalls, sushi, Western light meals, small hotpots, and Chinese fast food.

The group restructured the incubation mechanism of the “Red Pomegranate Plan,” forming a dual-track system of “Head Chef” (employee entrepreneurship) and “Public Restaurant” (headquarters-led incubation). The former stimulates internal entrepreneurial vitality, while the latter achieves multi-category and multi-level market coverage.

Financial data shows that revenue from other restaurant operations jumped from 483 million yuan to 1.521 billion yuan, an increase of over 200%, confirming the initial success of the multi-brand strategy. The group also stated it will strategically seek to acquire high-quality assets to further enrich its restaurant portfolio.

As of December 31, 2025, Haidilao operated a total of 1,383 restaurants, including 1,304 self-operated (with 79 new openings, 85 closures or relocations, and 45 self-operated to franchise conversions during the year) and 79 franchised stores (with 21 new openings). Self-operated stores decreased by 51 from 1,355 in 2024, while franchise stores expanded rapidly from 13 to 79.

Geographically, mainland China had 1,281 self-operated stores, with third-tier and below cities accounting for the largest share at 571 stores; Hong Kong, Macau, and Taiwan maintained 23 stores. The total sales of Haidilao restaurants (including franchise) declined 3.7% year-over-year, reflecting ongoing pressure on the overall network sales.

Shareholder Returns: HKD 0.384 per Share Dividend

As of December 31, 2025, the group’s bank balances and cash totaled 6.602 billion yuan (including fixed deposits), down from 7.475 billion yuan in 2024. Cash and cash equivalents decreased from 6.407 billion yuan to 3.951 billion yuan, mainly used for dividends, capital expenditures, and operations.

On the liabilities side, the 2026 senior notes (principal of USD 2.8548 billion) matured and were fully redeemed on January 14, 2026, significantly easing long-term debt pressure. The capital debt ratio was 24.3%, indicating a generally sound financial structure. Inventory turnover days improved from 24.0 days to 22.3 days, enhancing operational efficiency.

During the reporting period, the group paid approximately 4.195 billion yuan in interim and final dividends to shareholders (including the 2024 final dividend), and proposed a final dividend of HKD 0.384 per share for 2025, totaling about HKD 2.08 billion, maintaining a strong shareholder return.

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