By Megan Cheah
Haidilao International shares rose to a six-month intraday high on Wednesday, after the Chinese hotpot restaurant operator announced the return of its billionaire founder as the chief executive.
The stock jumped as much as 10.5% to 15.94 Hong Kong dollars, equivalent to US$2.04. It then pared some gains and was recently trading at HK$15.63.
Haidilao founder and chair Zhang Yong was reappointed to the top job effective Jan. 13, the restaurant chain said Tuesday after market close. He stepped down from the position in 2022 when the company warned it would record an annual loss amid ill-timed expansion efforts.
Citi analysts Xiaopo Wei and Vincent Young cheered Zhang's return, as the move likely signals the group's new focus on accelerating its growth and execution.
Haidilao's two CEOs, between Zhang's stints, helped to build up the company's digital infrastructure and restructure its stores, the analysts said in a note. The company will likely shift its focus back to its operations under founder-CEO Zhang, the Citi analysts added.
The company's top-line growth is likely to accelerate this year, they said, noting Haidilao's table turnover stabilized in the second half of 2025 and efficiency improved at its remodeled stores.
"Haidilao remains one of our top buys in [the] China consumer sector in 2026," Citi said.
Write to Megan Cheah at megan.cheah@wsj.com
(END) Dow Jones Newswires
January 13, 2026 22:22 ET (03:22 GMT)
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