BigChefs' net profit decreased by 89%: What are the reasons?

A Deep Dive into BigChefs' Financial Performance

Although BigChefs has increased its number of branches from 138 to 140, it has experienced a significant decrease of 89% in net profit. The reasons behind this situation are raising questions. The disparity between the company's rapid growth and the drop in profits is drawing the attention of investors.

The Economic Impact of New Branches

When opening new branches, it is essential that profits are reflected not only in visibility but also in the cash register. Particularly in high-cost locations such as Sabiha Gökçen and Tersane Istanbul, the initial costs of new branches are putting pressure on profits. The realized 2% increase in turnover indicates a significant erosion against inflation, as per capita spending at existing tables is shrinking in the face of inflation.

Why Are Profits Decreasing?

The net profit of BigChefs has decreased not only due to the high costs of newly opened branches but also because of rising financing expenses that have absorbed profits like a sponge. However, there is an important element that has saved the company from incurring losses: the 196 million lira Net Monetary Position Gain. This became a critical factor preventing the company from reporting a loss at the end of the period.

Hun Enerji's Problems and Risks

On the other hand, Hun Enerji is also facing challenges in its field. The shutdown of the plant in Erzurum is deeply affecting the company's financial situation. While financial returns from plants are always promising for general energy investors, the operational fragility of functioning facilities cannot be overlooked. Despite generating 762 million lira in revenue, the company has a high financing expense of 986 million lira, which is eroding its profit. As a result, it reported a 96 million lira net loss.

Conclusion and Investor Recommendations

While BigChefs is rapidly advancing in opening branches, the contraction in its revenues and rising costs raise questions for investors. Similarly, Hun Enerji also needs a planning strategy where legal risks are not at the table. Investors should take more cautious and informed steps in new projects.