Are Braised Snacks Losing Their Bite? Sector Giants Split as Juewei Food Posts Its First Listed-Year Loss and Shuts Over 4,000 Stores

Recently, publicly listed braised-snack companies have released their annual earnings forecasts, revealing a clear divergence among the industry’s so-called “Big Three.” While Huangshanghuang and Zhou Hei Ya delivered solid profit growth, the largest chain by store count—Juewei Food—recorded its first annual loss since going public.

On January 29, Huangshanghuang released its earnings guidance, projecting attributable net profit of RMB 70–90 million for 2025, representing year-on-year growth of 73.57% to 123.16%. Zhou Hei Ya has not yet issued a full-year forecast, but its interim report points to strong momentum: in the first half of 2025, the company achieved revenue of RMB 1.223 billion and net profit of RMB 108 million, a year-on-year surge of 228%. Profitability has improved markedly, signaling a clear recovery trend.

In contrast, Juewei Food’s outlook is far less encouraging. According to its latest earnings forecast, the company expects 2025 revenue of RMB 5.3–5.5 billion, down 12.09% to 15.29% year on year. Net profit attributable to shareholders is projected at a loss of RMB 160–220 million. By comparison, Juewei reported a net profit of RMB 227 million in 2024. This marks the company’s first annual loss since its 2017 listing.

Explaining the downturn, Juewei cited ongoing structural adjustments in the consumer sector despite broader economic stabilization. In 2025, operating pressure persisted, with declining revenue and underutilized production capacity weighing on performance. Additional factors—including rising non-operating expenses and investment losses accounted for under the equity method—further dragged on results.

Juewei’s early success was built on rapid franchise expansion, making it the largest of the three by store count. However, the risks of this extensive growth strategy have surfaced sharply during the industry’s adjustment cycle. By mid-2024, Juewei, Zhou Hei Ya, and Huangshanghuang operated 14,969, 3,456, and 4,052 stores respectively. Since then, Juewei has stopped disclosing store numbers in its financial reports. Third-party data from Narrow Gate Dining Eye shows that as of January 20, 2026, Juewei operated 10,713 stores—more than 4,000 fewer than its mid-2024 figure.

Store rationalization has been an industry-wide trend. By mid-2025, Zhou Hei Ya had reduced its footprint to 2,864 stores, closing nearly 600 outlets in the first half of the year. Huangshanghuang also shuttered more than 700 stores during the same period.

Multiple factors behind Juewei’s losses

Weaknesses in Juewei’s franchise management model have become increasingly apparent. In September 2025, the company was administratively penalized for information disclosure violations, with several senior executives sanctioned. Regulators found that from 2017 to 2021, Juewei failed to recognize revenue from franchise store renovation services, understating annual revenue by 1.64% to 5.48% each year. Over five years, unreported revenue totaled approximately RMB 723 million.

Beyond slowing core business growth and franchise management challenges, Juewei’s investment expansion has also weighed on performance. Rather than acting as a buffer, these investments have become a hidden drag on earnings. According to its 2025 interim report, several long-term equity investments recorded losses under the equity method, contributing to a decline in the carrying value of long-term investments from RMB 2.463 billion at the beginning of the period to RMB 2.383 billion by mid-year.

In an October 2024 response to a regulatory inquiry, Juewei acknowledged that traditional snack-style braised foods have been significantly affected by shifting consumer preferences, with store closures becoming a widespread industry phenomenon. To mitigate risk, the company has sought to diversify into “table-meal” braised dishes while exiting non-core investments to reduce potential losses.

By comparison, Zhou Hei Ya and Huangshanghuang have also felt the impact of a softer market, but both have moved decisively toward more refined operations. Huangshanghuang has consolidated non-core regions to focus resources on stronger markets, while Zhou Hei Ya has expanded retail product distribution through membership stores, encouraged in-store livestreaming, and strengthened private-domain marketing by integrating online and offline channels. As underperforming stores are closed, Zhou Hei Ya’s remaining network has shifted toward a higher proportion of directly operated outlets, enabling tighter operational control.

Huangshanghuang’s latest earnings guidance attributes profit growth to several factors: lower prices for duck by-products, strategic inventory purchases at favorable price points, improved cost control, and enhanced operational efficiency. In addition, the acquisition of freeze-dried food producer Lixing Food provided a meaningful boost to full-year profits.

Juewei, meanwhile, has begun implementing targeted adjustments. In a January 21 investor briefing, the company stated that it is optimizing its store model, sales channels, and supply-chain management while strengthening communication with franchisees. Pilot programs for new store formats are underway, alongside faster product iteration, accelerated new-product launches, and continued efforts to improve the quality and flavor consistency of core offerings.