On Thursday at 11:11 AM (Bangkok time), the share price of MK Restaurant Group Public Company Limited (SET: M) increased by 4.21% or THB 0.80 to THB 19.80, with a trading value of THB 103.90 million.
Finansia Syrus Securities (FSS) wrote that MK Restaurant Group posted a stronger-than-expected net profit in 1Q26, amounting to THB 163 million, representing an increase of 59.2% quarter-on-quarter but a decrease of 30.1% year-on-year, while surpassing market estimates by 12% due to higher-than-expected revenue from its ‘Bonus Suki’ brand.
Total revenue rose by 4.0% quarter-on-quarter and 14.3% year-on-year, supported by same-store sales growth (SSSG) of 3.5% year-on-year. The core MK brand registered 6.1% SSSG year-on-year, benefiting from the introduction of MK Buffet, which did not exist in the previous year. Bonus Suki revenue accelerated sharply to THB 445 million, accounting for 11% of total revenue, compared to just 3.9% in 4Q25.
However, the gross profit margin narrowed to 62.0%, down from 63.2% in 4Q25 and 66.5% in 1Q25. This decline primarily reflects a shift in the revenue mix, as the Bonus Suki—which operates at a lower gross margin than MK and other group brands—grew its share of revenue.
Selling, general, and administrative expenses (SG&A) to sales ratio improved, declining to 58.4% from 61.4% in 4Q25 and 60.6% in 1Q25, due to higher Bonus Suki revenues and a more moderate increase in operating expenses of the brand. The group reduced its workforce and branch count by around 20% starting in March, alongside a seasonal decline in employee bonus expenses.
At the end of 1Q26, the company operated a total of 701 branches, comprising 429 MK outlets, 185 Yayoi, 42 LCS, 27 Bonus, 3 Hikiniku ToCome, and 15 others.
The first quarter’s net profit accounts for 18.2% of Finansia’s full-year profit forecast. The brokerage maintains a positive outlook for the ongoing expansion of the Bonus Suki brand and continued declines in SG&A to sales, buoyed by workforce adjustments and an earlier restaurant closing time of 2:00 AM (previously 5:00 AM), which is expected to help reduce excess costs.
Nevertheless, FSS notes an increasingly cautious view on rising raw material costs, expecting these pressures to begin impacting results in 2Q26, with higher-priced imported raw materials likely to weigh more in the third quarter, once existing inventory is depleted. This presents a particular challenge for restaurant operators with buffet and shabu menus.
Following these, the brokerage maintains M’s 2026 net profit forecast at THB 899 million, a 7.3% increase year-on-year, and upholds the target price at THB 18.00 per share.
