Krungsri Securities and Kasikorn Securities maintain their hold rating on M, with a highest target price of 23 baht, after the company reported second-quarter 2026 net profit of 221 million baht, down 20% from a year earlier but up 36% from the previous quarter and better than expected due to a higher-than-estimated gross margin. The year-on-year profit decline resulted from higher costs as the buffet portfolio expanded across both MK Buffet and Bonus Suki, pushing gross margin down to 61.8% and net margin to 5.2%, while same-store sales fell 3.8%, reflecting weakening purchasing power. The company announced an interim dividend of 0.4 baht per share, representing a payout ratio of 96% and an annualized yield of 3.8%, with the ex-dividend date on August 26 and payment on September 11. The research team views the strong profit from Bonus Suki as reinforcing the potential of the new growth strategy, but the return to negative same-store sales indicates that the recovery in the core restaurant business has not yet spread across the portfolio, and expects third-quarter 2026 same-store sales to remain negative in the high single digits due to the full-quarter impact of the government's economic stimulus measures.
MK Restaurant Group Public Company LimitedHold rating maintained with highest target price of 23 baht; Q2 profit down 20% YoY but up 36% QoQ and better than expected due to higher gross margin, with interim dividend announced.
