1. What’s Happening? The Truth Behind the Five Guys Sale Rumors

Hanwha Galleria officially denied the recent rumors about selling Five Guys, stating that they are ‘groundless.’ However, they added that they are reviewing various options to strengthen brand competitiveness. Is this explanation enough to alleviate market concerns?

2. Why the Rumors? Analyzing Hanwha Galleria’s Current Situation

Hanwha Galleria is facing increasing financial burdens due to the sluggish performance of its department store business and investments in Five Guys. As of the first half of 2025, both operating income and net income recorded losses, and the debt ratio is also on an upward trend. In this situation, the sale rumors have amplified market anxiety.

2.1 Positive Factors: Business Diversification and Brand Competitiveness

  • Holds a diversified business portfolio including department stores, wine, and coffee, in addition to Five Guys, expecting a risk diversification effect.
  • Pursuing new businesses such as premium ice cream and Five Guys’ expansion into Japan.

2.2 Negative Factors: Financial Burden and Increased Competition

  • Possibility of increased financial burden if the sale falls through.
  • Pressure to improve profitability due to intensified competition in the department store and F&B markets.

3. What’s Next? Analyzing the Ripple Effects

Factors such as the resolution of uncertainty surrounding the sale rumors, improvement in earnings, and competitor trends will impact the stock price. Investors should also keep an eye on the fluctuations in the KRW/USD exchange rate and F&B raw material prices.

4. What Should Investors Do? Action Plan

In the short term, investors should closely monitor the resolution of uncertainty surrounding Five Guys and the trend of earnings improvement. In the medium to long term, the success of new businesses will be key to investment decisions. Hanwha Galleria needs to restore market confidence through proactive information disclosure and efforts to improve profitability.