CJ ENM shares sink as restaurant show hits record-low ratings

"Restaurant variety shows have worn out their welcome."

"Ujutteokjip," producer Na Young-seok's latest restaurant-themed variety show — a format CJ ENM's tvN long treated as a reliable hit formula — has posted its lowest ratings yet. Observers are calling the slide dismal as CJ ENM's variety content continues to lose viewers.

Weak earnings and collapsing ratings have sent CJ ENM's share price into a tailspin, with the stock unable to find a floor.

According to Nielsen Korea, the Friday episode of "Ujutteokjip" drew a 2.5 percent nationwide household rating — down from 2.6 percent for the Aug. 21 broadcast and a new series low. The show has been on a downward slide since posting a 3 percent rating in its second episode.

Viewers say they have grown tired of the repetitive restaurant-show format. Na's earlier restaurant programs once averaged ratings in the double digits, serving as a reliable earner for CJ ENM's variety lineup.

Now even the once-dependable restaurant genre is faltering. Ratings for flagship variety show "You Quiz on the Block" have also slipped to the 3 percent range, putting CJ ENM in an increasingly difficult position. Analysts point to two converging problems: creative fatigue driven by a stream of formulaic, recycled programs, and a structural shift in viewing habits as audiences migrate from linear TV to Netflix and YouTube.

Poor earnings and weak ratings have dragged CJ ENM's share price down as well. The stock plunged into the 30,000-won ($22) range and has yet to stage a meaningful recovery. As of Friday, shares stood at 33,050 won — roughly a tenth of the 300,000-won level the stock once reached.

Among investors, the mood has grown so bleak that some are describing the company's current stretch as a dark age.

Brokerages have been slashing their price targets for CJ ENM. Daishin Securities cut its target from 75,000 won to 56,000 won, while Samsung Securities made a steeper reduction from 71,000 won to 47,000 won. NH Investment Securities lowered its target from 65,000 won to 47,000 won, and KB Securities also trimmed its target to 60,000 won.

Brokerages generally view the share price decline as excessive but remain cautious about a near-term rebound, citing a collapse in advertising revenue alongside the ratings slump. CJ ENM's TV advertising sales have been halved, falling from 510 billion won in 2020 to 280 billion won in 2025, with the weakness continuing this year.

Adding to the pressure, Tving — the OTT platform that posted its first quarterly profit in the second quarter and had been propping up CJ ENM's overall earnings — now faces additional costs after a hacking incident forced it to compensate affected customers.

park@heraldcorp.com