FSS International Investment Advisory Securities (FSSIA) wrote in an analysis note that MK Restaurant Group Public Company Limited (SET: M) has reported impressive second-quarter results for 2026, with a net profit of THB 222 million. This reflects a robust 36% increase quarter-on-quarter, although it marks a year-on-year decline of 19.4%. Notably, the net profit surpassed the analyst’s expectation by 20%.
The company’s total revenue for the quarter grew by 3.7% from the previous quarter and 10.6% from the same period last year. While Same-Store Sales Growth (SSSG) slipped to -3.8% YoY, primarily due to a high base in 2025 following the launch of the MK Buffet and the impact of the government’s “Thai Chuay Thai” campaign in June, the company’s diversified outlet strategy provided a buffer.
Bonus Suki outlets contributed significantly, generating revenues of THB 544 million, accounting for 13% of total revenue, up from 11% in the previous quarter. Furthermore, revenue from Hikiniku To Come increased following the opening of four new branches.
As of the end of 2Q26, M operated 696 branches, down by five from the previous quarter but up by twelve compared to last year. The company remains focused on optimizing its portfolio by closing underperforming outlets across MK, Yayoi, and LCS brands, while expanding successful brands. The number of Bonus Suki outlets rose to 35 from 27 in the first quarter of this year.
The gross profit margin stood at 61.8%, exceeding FSSIA’s estimate of 61%. Although this represented a slight 20 basis point reduction QoQ, the decline was less than anticipated—even as the share of Bonus Suki outlets increased. According to the securities firm, M’s resilient profit margins can be attributed to:
Menu enhancements at MK Buffet, which have encouraged higher customer spending.
Intensive efforts to minimize kitchen waste, especially in Bonus Suki outlets, and efficient management of raw materials.
Hikiniku has maintained strong profitability and now constitutes a larger share of overall earnings.
Operating expenses continued to rise, up 2.2% QoQ and 9.2% YoY, driven by costs related to new branch openings, depreciation, rental expenses, and utility costs. However, healthy revenue growth resulted in a reduction of the SG&A to sales ratio to 57.5%, compared to 58.4% in the previous quarter and 58.3% in the second quarter of 2025.
FSSIA also highlights M’s improvement in staff costs, which fell by 1.7% QoQ as Bonus Suki branch staffing was optimized in the second quarter, though they are still up 9.2% YoY due to expansion. The brokerage expects ongoing efficiency gains in future quarters.
For the first half of 2026, net profit stood at thb 385 million, a decrease of 24.3% YoY, representing 44.4% of full-year projections.
Looking ahead, FSSIA anticipates both positive and negative factors in M’s 3Q26 operation. The “Thai Chuay Thai” program and last year’s high revenue base suggest that the company’s SSSG may remain negative, but continued Bonus Suki branch expansion should support YoY top-line growth, despite expectations of a seasonal QoQ revenue dip.
M has also announced an interim dividend for 1H26 at THB 0.4 per share, representing a payout ratio of 93% and offering a dividend yield of 1.9%. The ex-dividend date is set at August 26, while the payment date is scheduled for September 11.
