Xiaobu Xiaobu continues to incur losses but the decline narrows; plans to open new restaurants to explore new store formats | Financial Report Analysis

Facing thousands of announcements from listed companies every day, which ones should you look at? Major announcements can easily span dozens or even hundreds of pages; what are the key points? With a bunch of technical jargon in the announcements, how can you tell if it’s good or bad news? Please refer to the “Quick Read Announcements” section by the Company News Department of Caixin, where our reporters stationed nationwide will provide you with accurate, fast, and professional interpretations on the evening of the announcements.

Caixin, March 26 (Reporter Shen Jiaojiao, Intern Reporter Lin Jiahao) - Xiaobuxiang (00520.HK) announced its performance for the fiscal year 2025 this evening. Due to store closures, the company continues to incur losses in 2025, but the decline has slowed due to a reduction in the number of closures.

The announcement shows that Xiaobuxiang achieved a revenue of 3.79 billion yuan in 2025, a year-on-year decrease of 20.3%; the loss for the year was 280 million yuan, which is a narrowing compared to 2024. The revenue from both of the company’s brands continues to show a trend of losses, with Xiaobuxiang’s revenue at 2.28 billion yuan, a year-on-year decrease of 13.3%, and Coucou’s revenue at 1.35 billion yuan, a year-on-year decrease of 30.8%.

The decline in performance is mainly due to the continued decrease in the number of the company’s stores, although the number of closures has decreased compared to 2024. In 2025, the number of stores net decreased by 52, while in 2024, the net decrease was 133. Among them, Xiaobuxiang saw a net decrease of 2 stores to 758, while Coucou had a net decrease of 50 stores to 147, compared to net decreases of 73 and 60 stores in 2024, respectively.

The company stated that most of the closed restaurants were loss-making, and most of the locations did not align with the high cost-performance model promoted by Xiaobuxiang.

By brand, Xiaobuxiang continues to develop towards high cost-performance. During the reporting period, the average customer spending at Xiaobuxiang restaurants decreased from 54.8 yuan to 51.5 yuan, while the turnover rate increased from 2.5 times to 2.8 times. Meanwhile, Xiaobuxiang’s same-store sales in 2025 were 1.93 billion yuan, a year-on-year decrease of 9.6%.

Regarding the store opening strategy for 2026, the Xiaobuxiang brand plans to open no fewer than 100 new restaurants, hoping to achieve a turnover rate of over 3 times. The company will continue to explore new store models, including piloting Xiaobuxiang Ranch and self-service model restaurants in high-consumption cities like Shanghai, focusing on delivery satellite stores in cities like Guangzhou and Shenzhen to cover multiple dining scenarios, including regular meals and late-night snacks, and exploring high cost-performance positioning with the Xiaobuxiang Mini restaurant model in lower-tier markets.

Coucou will continue to focus on the high-end market. In 2025, the average customer spending at Coucou restaurants increased from 123.5 yuan to 148.8 yuan, while the turnover rate decreased from 1.6 times to 1.4 times. In terms of same-store sales, Coucou restaurants reported 1.14 billion yuan, a year-on-year decrease of 14.2%. In 2026, the Coucou brand will maintain a cautious approach to store openings, emphasizing profitability per store.

For a wealth of information and precise interpretations, check out the Sina Finance APP.