Restaurant Stocks on the Menu: How 9 Famous Eateries Fared Before Okaju’s Highly Anticipated Debut

Competition in the restaurant business is fierce and intensified at every level. These days, there are many new restaurants popping up. Hoping to capture market share By finding the highlights Strong points to compete for space Most recently, ‘Ohkaju’ or Growing Vegetables Because We Love Mother Public Company Limited (OKJ), a service provider and distributor of food, beverages and health products. Under the concept ‘Be Organic from Farm to Table’ is about to run in the industry of the Stock Exchange of Thailand. It will be offered for sale to the public for the first time on October 4th and is now open for purchase from September 23 to 25, 2024. ‘Okaju’ is one of the famous restaurants. It has an income of more than 1 billion baht per year. Make the owner think big Come and raise money in the Thai stock market. (Information from the Stock Exchange of Thailand as of 20 September 2024)

1.Growing Vegetables Because I Love Mom Public Company Limited or Ohkaju (OKJ)

• First trading day 4 October 2024
• IPO price 6.70 baht
• P/E 24.13 times
• 2024 half year income of 1,110.73 million baht
• 2024 half year profit of 102.36 million baht
• Ohkaju currently has 33 branches and plans to expand to 67 branches in 2028.
• There are shops in the same chain: Ohkajhu Wrap & Roll has 1 branch and Oh!

2. A Minor International Public Company Limited or MINT

• First trading day 14 October 1998.
• Price 28.75 baht
• P/E 23.17 times
• 2024 half year income of 82,121.36 million baht
• 2024 half-year profit at 3,969.30 million baht
• There are 9 famous restaurants: Benihana 21 branches, The Pizza Company 588 branches, Beijing Riverside & Courtyard 145 branches, Thai Express Group 106 branches, Bonchon 118 branches, Poulet 14 branches, Gaga 41 branches, Sizz Zler 73 branches, Burger King 130 branches

3. Central Plaza Hotel Public Company Limited CENTEL

• First trading day on 10 January 1990.
• Price 39.25 baht
• P/E 38.00 times
• 2024 half year income of 12,236.05 million baht
• 2024 half year profit at 922.84 million baht
• There are 19 famous restaurants: Pepper Lunch 49 branches, Shabuton 12 branches, Rameni 26 branches, Otoya 48 branches, Tenya 12 branches, Katsuya 59 branches, Arigato 210 branches Shinkan Zen Sushi 51, Ramen Kagetsu Arashi 4 branches, KFC 335 branches, Terrace south Bangkok 4 branches, Aroy Dee 11 branches, Kowloon 1 branch, Grab Kitchen by Every Food 6 branches, Salad Facto 39 Brown Cafe 10 branches, Somtam Nua 8 branches, Hunter Moo Kratha 6 branches and Keani 1 branch.

4.MK Restaurant Group Public Company Limited M

• First trading day on 15 August 2013
• Price 29.00 baht
• P/E 16.20 times
• 2024 half year income of 8,207.33 million baht
• 2024 half year profit at 747.15 million baht
• There are 11 famous restaurants, including MK Suki branch 439, MK Gold branch 5, MK Life branch 4, Laem Charoen Seafood branch 39, Na Siam branch 1, Le Siam 3 branch, Bizzy Box 2 branch Le Per 198 branch, Hakata 1 branch, Miyazaki 8 branches.

5.S & P Syndicate Public Company Limited SNP

• First trading day on 8 May 1999.
• Price 13.30 baht
• P/E 14.22 times
• 2024 half year income of 2,922.70 million baht
• Half-year 2024 profit at 182.43 million baht
• There are 11 famous restaurants, including S&P Restaurant 128 branches, S&P Restaurant 5 branches in Cambodia, Patio Restaurant 1 branch, Patara 1 branch in the country, 6 branches in England, 1 Austrian branch, Tonkatsu Maisen 12 branches, Umenohana Japanese Restaurant 1 branch

6. Maguro Group Public Company Limited MAGURO

• First trading day 5 June 2024
• Price 18.00 baht
• P/E 33.32 times
• 2024 half year income of 619.29 million baht
• 2024 half year profit of 33.04 million baht
• There are 2 famous restaurants: Maguro 14 branches, Hitori Shabu 6 branches.

7.Zen Corporation Group Public Company Limited ZEN

• First trading day 20 February 2019
• Price 7.70 baht
• P/E 24.26 times
• 2024 half year income of 2,036.70 million baht
• 2024 half year profit of 16.23 million baht
• There are 13 famous restaurants: Ar Y Tabl 38 branches, Khiang 58 branches, Din yn 2 branches, Pho 3 branches, Lao Yuan 34 branches, De Tumour 4 branches, Tummour 87 branches, Zen 53 branches, Zen Box 2 branches, Aka 55 branches, Aka Shabu branch 1, Tetsu branch 1, Sushi Chu and Carnival Yakiniku 3 branches

8.After You Public Company Limited PA

• First trading day 23 December 2016
• Price 9.55 baht
• P/E 34.20 times
• 2024 half year income of 724.92 million baht
• 2024 half year profit at 126.86 million baht
• There are 3 famous shops: After You, 60 branches, Lukko Fruit Shop, 9 branches, Mika Coffee Shop, 6 branches.

9. JCK Hospitality Public Company Limited JCKH

• First trading day 18 September 2012
• Price 0.02 baht
• P/E – times
• 2024 half year income of 78.48 million baht
• Half-year 2024 profit at -76.53 million baht
• There are 13 famous restaurants, including 5 branches of Hot Pot, 2 branches of Daidomon Korean Grill, 1 branch of Zhengdou Grand, 1 branch of Burger & Lobster, and Ai Hua Guo 2 branches SHABU TOMO (Shabu Tomo) 5 branches

Suwat Sinsadok Deputy CEO Securities Business Division for Institutional Clients Beyond Securities Public Company Limited gave an interview to “Krungthep Turakij” He said that the competition in the restaurant business is quite high. But there is a real demand for eating, with restaurants adapting to the consumer or what people want For example, why did POT HOT fail, while Suki Tee Noi thrived? Or compared to Japanese restaurants between ZEN where profits fell.

As for MAGURO, these days more and more people are turning to eating this way. So, it’s a big problem for restaurants that stand on their original basis. or even M who has grown in the past And is famous but still doing the same thing. or if it has a slow adaptation As other new restaurants spring up, they encounter more new competitors, causing the new generation to turn to eating in new restaurants instead.

Therefore, this is the most important issue for a restaurant to be a Red Ocean, but the operator must understand the market. And by looking for the right opportunities, you can become a winner. Such as Suki Tee Noi and MAGURO who have become winners today. Because entrepreneurs know there is a gap in the market

Most recently, Ohkaju, which will enter the market on October 4th, has strong points that others do not. In health matters It is one of the few restaurants where the whole family can eat. Because it is a restaurant for everyone in the family. which is currently quite rare Compared to Chinese restaurants children may not like to eat The whole family could not go. or Western restaurants that elderly people may not like to eat, etc. Oh Kaju is a restaurant that meets the needs of the whole family of all ages.

Watan Jitsomnuk, Director of Strategic Analysis at Phai Securities, provided additional information. The competition in the restaurant business is quite fierce. There are many chain restaurants these days. Which restaurants today do not have much loyalty. Because customers can switch and change at any time. Even if we are going to eat in Restaurant A, some days we may change to restaurant B, etc., which has done in the past The restaurant business has not seen much significant growth.

By past operating results For example, the shares of M or MK Restaurant Group Public Company Limited, 2Q2024 has not yet had much growth compared to last year, 2Q24 income is around 4 billion baht, and if we looked at the one period last year it was still negative around 8%.

However, the restaurant still exists today. If any store is a new brand, it may still see growth. For example, MAGURO has just entered the market and is still growing In 2Q24, income increased by about 21%, while M’s income decreased.

“In the restaurant business, if any brand is strong Still can see growth or can call customers But after some time has passed restaurants will face competitors. As in the past, M has continued to grow. But when facing a new challenge Like Suki Tee Noi who is a competitor and became quite strong In the past, Suki Tee Bach’s income is growing quite well. and a chain at the moment Many new restaurants are emerging. “

Meanwhile, Ohkaju’s income is growing quite well. In 2019, the income was 643 million baht.

However, in terms of making a profit, it has decreased somewhat during 2019 with an income of 643 million baht, making a profit of about 80 million baht, which is equivalent to a net profit rate of 12%, but as for the current year 2023 ., the income is around 1,700 million baht, but the remaining profit appears to be only 141 million baht, which equates to a net profit margin of 8%. 8% in 2023, although the income will grow, but profits are still showing signs of slowing down, which means that Oh Kaju’s business may have higher costs. Or the business is at a point where more marketing is needed. in order to generate income and profit

By recommending to investors interested in stocks in the restaurant group that The price of the stock must be considered. In the past, the price of a restaurant if the RE price was 30 times more expensive, but now the competition is fierce, it may have to be reduced to about 20 times M has estimated the price as a target price of 39 baht if thinking back to P/E will be 25 times.