Kyochon F&B operates the 'Kyochon Chicken' brand and is a domestic chicken franchise company whose core business is not running the outlets directly but supplying sauces, raw materials and packaging to franchisees nationwide and collecting royalties; of its 2025 revenue of ₩517.4 billion, the domestic franchise business accounts for roughly 94%, making it a heavily domestic-demand-driven structure. In the first quarter of 2026, operating profit was cut roughly in half from a year earlier on higher raw-material and packaging costs and a strong won, while the company sustained a shareholder-return stance centered on introducing quarterly dividends and keeping the payout ratio above 40%, so the dividend yield reaches about 8%. What stands out lately is that when input costs stabilize and the dividend is maintained, it trades as a high-yield value stock near its net-asset value (P/B of 0.98x); but when raw materials and the exchange rate swing and the U.S. and China overseas units keep posting losses, both profit and dividend capacity can be pressured together.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 77.5%).
- Revenue rose 7.6% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 1.0% lower than a year earlier.
- ROE is 9.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 6.8%.
Ownership & governance As of 2025-12-31
Largest shareholder Kwon Won-kang 69.2% (individual)
Controlling bloc incl. related parties 69.43%
With the controlling bloc holding 69%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Kyochon F&B is a domestic chicken franchise company that operates the 'Kyochon Chicken' brand.
- Rather than running every outlet directly, its core business is supplying its soy-sauce and honey-series sauces plus raw materials and packaging to franchisees nationwide and collecting royalties (which is why the sector is classified as 'wholesale' even though it is really a restaurant franchise).
- Of its 2025 revenue of ₩517.4 billion, the domestic franchise business makes up about 94% (₩488.9 billion), so the weight of the domestic franchise operation is high, with overseas units in the U.S. and China and new businesses filling the remainder.
- How it makes money can be summed up as 'number of franchise outlets × sales per outlet × raw-material and packaging margin,' and the prices of raw materials such as chicken and cooking oil, along with the exchange rate, directly drive profitability.
- The latest closing price is ₩3,680 and market capitalization is ₩183.9 billion.
- The price is below the 20-day line (₩3,822) and below the 60-day line (₩4,102).
- Sitting under both the short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that scores the strength of gains versus declines over the past 14 days on a 0-100 scale) is 37.6, a neutral level.
- The one-month change is -10.2%, the three-month change is -10.9%, and the position versus the 52-week high is -39.4%.
- Relative strength versus the KOSPI is 12 (1-99, computed from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- It sits in roughly the top 89% of all stocks by strength.
- Over the past three months it lagged the index by 28.8%.
- It is best to read the chart together with trading volume and the dates of disclosures.
- The P/E ratio (how many times one year's profit the share price represents) is 10.48x, lower than food and dining peers (Ottogi 17.4x, Dongsuh 16.0x), and the P/B (how many times book net assets the price represents) is 0.97x, so the share price is essentially at net-asset value.
- In other words, it trades at about the value of the company's own equity, so on an asset-value basis it is hard to call expensive.
- On profitability, ROE (how much is earned in a year per unit of equity) is 9.3%, above large food names (Ottogi 3.3%, CJ CheilJedang in the red), so within the same food group it uses capital efficiently.
- The operating margin is 6.8%.
- On the balance sheet, the debt ratio (debt against equity) is 100% and the current ratio (assets convertible to cash within a year against debt due within a year) is 77.5%, so short-term liquidity is tight and soundness is 'average.' The most distinctive feature is the dividend: ₩300 per share, a dividend yield of about 8%, and a payout ratio of 65%, returning a substantial part of profit to shareholders.
- One point to note is that this P/E of 10.6x is based on 2025 confirmed (trailing) earnings, and 2025 was a year in which profit recovered sharply from the prior year's weakness.
- This year's profit could come in lower, so the P/E converted on this year's expected earnings rises to about 13.8x — though even that is still below the peer group's trailing range (16-17x).
- Over five years, revenue moved from ₩507.6 billion to ₩517.4 billion (2021→2025), essentially flat (a compound annual rate of +0.5%), while profit has been volatile.
- Net profit swung around: ₩29.8 billion in 2021, ₩5.3 billion in 2022, ₩14.3 billion in 2023, ₩2.2 billion in 2024, and ₩17.5 billion in 2025.
- The 2025 net profit of +708% and operating profit of +127% should be read as a recovery off the weak 2024 base.
- So far this year, first-quarter 2026 revenue held at ₩123.4 billion (-1.0%), but operating profit of ₩5.3 billion (-50.6%) and net profit of ₩3.4 billion (-48.7%) show profitability took a step back.
- The weakness is attributed to raw-material and packaging burdens from a prolonged avian-influenza situation, a strong won, and the cost of supplying dedicated cooking oil to support franchisees.
- The reason the P/E on this year's expected earnings is higher than trailing, at 13.8x, lies precisely in this first-quarter profit slowdown.
- In sum, the growth picture is 'flat revenue plus profit that swings with costs,' and the key is not so much revenue growth as whether margins recover as raw materials and the exchange rate stabilize.
- Recent disclosures cut two ways: a profit slowdown and shareholder returns.
- On May 12, a fair-disclosure of preliminary first-quarter results reported that operating profit had roughly halved year on year, with raw-material and packaging burdens, a strong won, and the cost of dedicated cooking oil for franchisees cited as causes.
- At the same time, on May 14 the company decided on a cash-and-in-kind dividend, sustaining a shareholder-return stance centered on introducing quarterly dividends and keeping the payout ratio above 40%, and on the same day filed its first-quarter report disclosing details such as the profit and loss of overseas units.
- On June 9 it announced an investor relations (IR) event, and in April it reported the progress of a trust contract to acquire treasury shares for employee performance compensation (RSU).
- A consistent message reads through: 'profit slowed temporarily, but shareholder returns are being maintained via dividends and treasury shares.'
- The strengths are clear.
- The stable cash generation of the No.
- 1 domestic chicken franchise brand, a high dividend yield of about 8%, and an explicit shareholder-return policy of a payout ratio above 40% and quarterly dividends all support it.
- On valuation, too, the share price is at net-asset value (P/B of 0.98x) and the trailing P/E of 10.6x is below peers, so on an asset-value and dividend basis it reads as cheaply valued.
- The caution is profit volatility.
- Revenue has been near-flat for five years, and as the near-halving of first-quarter 2026 profit shows, profitability swings sharply with cost variables such as raw materials and the exchange rate.
- Overseas units in the U.S. and China, once pushed as a growth breakthrough, are still closer to a drag than a contributor to earnings.
- In sum, this company is strong 'when costs stabilize and the dividend is maintained,' trading as a high-yield value stock near net-asset value, and weak 'when raw materials and the exchange rate swing and overseas losses persist,' with profit and dividend capacity pressured together.
- Ultimately, watching both the stability of the dividend and the trajectory of costs is key.
🔎 Valuation vs peers Fairly valued
Compared against domestic food peers such as packaged food and dining; as a franchise business its scale is small, but it is differentiated on its dividend and return-on-equity profile.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Ottogi | 19.19x | 0.64x | 3.34% |
| Dongsuh | 18.06x | 1.52x | 8.41% |
| CJ CheilJedang | 0.00x | 0.41x | -8.10% |
The trailing P/E of 11.4x is lower than food peers such as Ottogi (18.5) and Dongsuh (17.0), so on the surface it looks cheap. Two caveats are needed, however. First, this 11.4x is based on 2025 confirmed earnings in a recovery year, so if profit turns down again as it did in the first quarter of 2026, the effective forward multiple rises further. Second, structural weaknesses — flat revenue and overseas losses — partly justify the low multiple. On the other hand, the high dividend yield of 7.5% and ROE of 9.3% are clear strengths versus peers. Taken together, rather than declaring it 'cheap' or 'expensive,' it is reasonable to see it in a 'fairly valued' zone where the strength of a high dividend offsets the weaknesses of profit volatility and stalled growth.
Price history Close · MA20 · MA60
The latest close is ₩3,680 and the market capitalization is ₩183.9 billion. The price sits below its 20-day moving average (₩3,822) and below its 60-day moving average (₩4,102). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 37.6, a neutral level. The one-month change is -10.2%, the three-month change is -10.9%, and the position relative to the 52-week high is -39.4%. Relative strength versus the KOSPI is 12 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 11% of all stocks. Over the past three months it lagged the index by 28.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -28.76% / 6M -45.62% / 12M -72.31%
Key metrics vs sector median
Valuation
The P/E of 10.48x is in line with the sector median (9.68x). The P/B of 0.97x is above the sector median (0.80x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 9.3%, above the sector average (7.0%). The operating margin is 6.8%. The debt ratio is 100.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $294.9M | $318.7M | $342.9M | +7.60% ↓ slower |
| Operating profit | $16.5M | $10.2M | $23.2M | +126.97% ↑ faster |
| Net profit | $9.5M | $1.4M | $11.6M | +708.33% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $336.4M | $343.0M | $294.9M | $318.7M | $342.9M |
| Operating profit | $27.1M | $5.9M | $16.5M | $10.2M | $23.2M |
| Net profit | $19.8M | $3.5M | $9.5M | $1.4M | $11.6M |
| Revenue CAGR | 4-yr avg 0.48% | ||||
Revenue rose 7.6% year over year (2023 ₩445.0 billion → 2024 ₩480.8 billion → 2025 ₩517.4 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 127.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 0.5%. The two-year revenue CAGR is 7.8%. In the most recent quarter (Q1 2026), revenue was 1.0% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 8.2%, is on the high side.
Points to watch
- Revenue rose 7.6% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-12EarningsFair-disclosure of preliminary consolidated first-quarter 2026 results — revenue ₩123.4 billion (-1.0% YoY), operating profit ₩5.3 billion (-50.6%), net profit ₩3.4 billion (-48.7%). Raw-material and packaging plus exchange-rate burdens and higher franchisee-support costs were reflected in profitability.Negative in the short term. The profit momentum of the 2025 recovery year stalls, a factor that lowers expectations for this year's profit. Source
- 2026-05-14DividendCash-and-in-kind dividend decision and record-date decision — a shareholder-return disclosure sustaining the introduction of quarterly dividends and a payout ratio above 40%.Positive in the medium term. Even amid a profit slowdown, the high-dividend and quarterly-dividend policy improves the predictability of shareholder returns. Source
- 2026-05-14FilingFiling of the March 2026 quarterly report — disclosing details such as the first-quarter financial statements and results by segment and overseas unit.Neutral. Material that confirms the preliminary results and details items such as overseas-unit profit and loss. Source
- 2026-06-09IRAnnouncement of an investor relations (IR) event — following the weak first-quarter results, the company sets a venue to explain its business status and shareholder-return plans directly.Neutral to positive. Whether the direction of costs and overseas business and the dividend stance are reaffirmed is the point to watch. Source
- 2026-04-17FilingReport on acquisition status under a trust contract, etc. — reporting the progress of a trust contract to acquire treasury shares for employee performance compensation (RSU).Slightly positive in the medium term. Part of a shareholder-return and compensation policy using treasury shares alongside the dividend. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-09Disclosure
- 2026-06-05OwnershipOwnership-change filing
- 2026-05-29Corporate governance report
- 2026-05-14DividendCash/stock dividend decision
- 2026-05-14PeriodicQuarterly report
- 2026-05-14DividendCash/stock dividend decision
- 2026-05-12EarningsFair-disclosure notice
- 2026-04-17OwnershipLargest-shareholder ownership change report
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOwnership-change filing
- 2026-04-17Disclosure
- 2026-04-10OwnershipLargest-shareholder ownership change report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.