The Korean Journal of Franchise Management (한국프랜차이즈경영연구)

Korea Society of Franchise Management (한국프랜차이즈경영학회)
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Analysis of the Financial Performance of Chicken Franchises during the COVID-19 - Focusing on Financial Statement Analysis

치킨 프랜차이즈의 COVID-19 상황 속 경영성과 분석 - 재무제표 분석을 중심으로

  • Jae Ryang JEONG (KICPA, Tax-M&A, Deloitte Anjin LLC) ;
  • Jong Woo CHOI (Lab for Industrial Management, Department of Agricultural Economics and Rural Development, Seoul National University)
  • Received : 2024.01.11
  • Accepted : 2024.02.13
  • Published : 2024.03.30
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Abstract

Purpose: Dining out at restaurants was limited during the COVID-19 period. In order to confirm the impact of COVID-19 on the chicken market, this study selected three chicken companies, Kyochon, BBQ, and BHC, and conducted financial statement analysis and regression analysis. Research design and methodology: Each company's financial statements were divided into before and after COVID-19, and the rate of change and financial ratio for each item were calculated to see if there were any significant changes, and the impact of COVID-19 on each company's sales was identified through regression analysis. Result: As a result of the study, the increase in sales and assets of each company continued, and the influence of COVID-19 could be confirmed through regression analysis. It can be inferred that COVID-19 indeed affected the expansion of the chicken market. Conclusion: Therefore, it was confirmed through this study that COVID-19 had a significant effect on the growth of the chicken market. While individual chicken small business owners are grappling with declining sales per outlet, the decline of commercial areas, and a surge in closures, the broader chicken franchise industry is witnessing a surge in demand and business expansion prompted by the pandemic.

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