Hot Pots

Hot Pot Deliver Excellent Profitable Growth

Background

MK Restaurant Group Public Company Limited is a Thailand-based restaurant chain company.

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

We respect your email privacy

Q2 hedge fund letters, conference, scoops etc

Hot Pots

It franchises MK Suki (Japanese-style hot pot) restaurants outside Thailand in Japan, Vietnam, Indonesia, and Singapore.

MK outlets account for 79% of revenue and Yayoi restaurants account for 19% of revenue.

Business Description

M is primarily a restaurant business with 653 outlets as of 2Q18, with 29 more facilities planned for 2018 (12 MK and 17 Yayoi). Its subsidiary, MK Personnel Training Center, provides training for all existing and future staff of the restaurants.

MK Restaurants offer Thai-style sukiyaki and a wide variety of dim sum and roasted dishes. MK Gold restaurants targeted at high-income customers offer finer dishes compared to the regular MK branches.

Hot Pots

Its Japanese set-food Yayoi Restaurants offer a la carte menus and sets served with rice, salad and miso soup. M operates two other Japanese restaurants, Hakata and Miyazaki, two Thai restaurants, Na Siam and Le Siam, as well as Le Petit, a nationwide coffee shop and bakery chain offering snacks, baked goods, and coffee.

New JV with Senko Group (Japan’s No.2 logistics provider) has started operation and should support margin in the long run. Introduction of new brands, including “MK Harvest,” “Bizzy Box” and “MK Express,” aims to expand the product range and could show significant results in the future.

Leadership

Rit Thirakomen has served as Chairman & CEO since mid-2012. The Thirakomen family owns 70% of the company’s outstanding shares.

Hot Pots

He received a Bachelor’s Degree of Electrical Engineering from Chulalongkorn University, Thailand.

World Class Benchmarking

Profitable Growth has been great at M over the years. In the past 12 months, M ranked among the top 132 out of 1,320 medium-sized Consumer Discretionary companies worldwide.

Profitability improved to #1 from #2 in 2016 and has stayed there since. Growth improved to #5 from #7 in 2016 and has stayed there since as well.

Hot Pots

Asset utilization and Profit margin have been steady at #5 and #2 respectively for the whole time period. The strong Profit margin is the main driver of M’s Profitability and overall Profitable Growth rank.

Sales growth dropped to #7 in 2015 but improved to #5 afterward. Margin change has fluctuated over the years and in the past 12 months, it ended up at #4.

Article by Become A Better Investor


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Welcome in the new year by signing up up for ValueWalkPremium today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 1/31/2019 or after next 30 23 subscribers take advantage whichever comes first – please do not share this discount with others

 

0