Park Jong-dae, an analyst at Hana Securities, stated, “First-quarter operating profit rose 68% year-over-year to 38.1 billion won,” adding, “Depreciation expenses have begun to decline for the first time, and gross profit margin is also rising due to an improved product mix.” He continued, “The expansion of overseas operations is also a factor driving further profitability improvements,” explaining, “While recognizing commission revenue as sales has limited significance for revenue growth, it directly contributes to operating profit and thus has a high impact on earnings.”

In fact, while BGF Retail’s depreciation expense burden had been increasing as the number of stores rose by 1,671 between 2023 and 2024, the cost burden is easing this year as the pace of net store growth has slowed. The plan for net store growth this year is approximately 300 stores.

Stable revenue growth is expected to continue in the second quarter as well. Analyst Park noted, “We expect the same-store sales growth rate to reach nearly 4% in the second quarter, following 2.7% in the first quarter,” adding, “In May, the increase in domestic travel by Koreans during the holiday period, the effect of subsidies to offset high oil prices, and the rise in inbound foreign tourists all had a significant impact.”

In particular, the expansion of foreign consumer spending is emerging as a new growth driver. He explained, “Convenience stores are also seeing an increasing contribution to sales from inbound foreign tourists, which is positive not only for sales growth but also for profitability,” adding, “Sales are largely concentrated in high-margin food categories, while tobacco—the category with the lowest margins—accounts for only 12% of total sales.”

He continued, “First-quarter sales from foreign tourists increased by 52% year-over-year, and their share of total sales rose to 1.6%; this figure is expected to rise to 2% in the second quarter.” He added, “Since this revenue was virtually nonexistent last year, it can be seen as contributing about a quarter of the overall growth rate.”

However, he noted that profit growth in the second quarter may be limited. Analyst Park said, “Due to one-time costs related to the Cargo Workers’ Union strike, the increase in operating profit is likely to be limited,” and projected consolidated operating profit for the second quarter at 74 billion won.

He also gave a positive assessment of the company’s mid- to long-term growth strategy. Analyst Park noted, “The business environment for convenience stores is positive,” adding, “Inbound foreign tourists are creating new demand, and competition is easing.” He continued, “The company is expanding its customer base to include women, seniors, and foreign visitors, while broadening its product lineup to include health supplements, low-sugar foods, and medical meals,” adding, “For its overseas business, the company aims to operate 1,000 stores across five countries by 2028.”

Hana Securities projected BGF Retail’s 2026 revenue and operating profit at 9.514 trillion won and 293 billion won, respectively. It forecast that this growth trend would continue in 2027, with revenue reaching 9.944 trillion won and operating profit reaching 324 billion won. Analyst Park assessed that “the 12-month forward price-to-earnings ratio (PER) stands at 8.6x, which is a comfortable level.”