Xiabuxiabu Cuts Loss-Making Stores as Revenue Falls Amid Fierce Catering Competition

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. ( (HK:0520) ) has shared an announcement.

Xiabuxiabu Catering Management reported a sharp revenue decline of 20.3% in 2025 to RMB3.79 billion, alongside a narrowed but still substantial annual loss attributable to shareholders of RMB300.5 million. The group opened 57 new restaurants but closed 109 underperforming outlets, reflecting a strategic shift toward pruning loss-making sites and realigning locations with its value-for-money positioning amid intense industry competition and more cautious consumer spending.

As of year-end, the company operated 755 Xiabuxiabu and 131 Coucou restaurants in Mainland China, plus a small number of overseas stores, giving it significant scale in a catering market that is recovering only moderately. Management expects that ongoing portfolio adjustments and efficiency measures will help improve restaurant profitability and bolster its position as industry consolidation accelerates, as weaker operators exit and leading brands explore leaner formats and selective overseas expansion.

The most recent analyst rating on (HK:0520) stock is a Sell with a HK$0.71 price target. To see the full list of analyst forecasts on Xiabuxiabu Catering Management (China) Holdings Co., Ltd. stock, see the HK:0520 Stock Forecast page.

More about Xiabuxiabu Catering Management (China) Holdings Co., Ltd.

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. is a China-based casual dining group operating the Xiabuxiabu and Coucou restaurant brands, primarily focused on hotpot and related catering services. The company runs hundreds of outlets across multiple provinces and major municipalities in Mainland China, as well as a growing but still limited presence in overseas markets.

Average Trading Volume: 1,529,063

Technical Sentiment Signal: Sell

Current Market Cap: HK$584.3M

For a thorough assessment of 0520 stock, go to TipRanks’ Stock Analysis page.