Restaurant Chain Operator Jiumaojiu International Likely to Face Challenges -- Market Talk
Dow Jones
Jul 24
0439 GMT - Chinese restaurant chain operator Jiumaojiu International's business is likely to continue facing challenges, according to Nomura analysts Riley Jin and Jizhou Dong in a research note. The company's revenue in 1H is likely to decline by 7% on year, Nomura says, citing weak performance of some of its restaurant brands. Nomura expects net store closures to persist into 3Q. They also highlight potential pressures on gross margins due to execution risks associated with the new store format for Tai Er, one of Jiumaojiu's restaurant brands. Nomura keeps a reduce rating on the stock, but raises its target price to HK$2.34 from HK$2.12. Shares last traded at HK$3.07. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
July 24, 2025 00:39 ET (04:39 GMT)
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