Worth reading
83Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
2233
¥ million (year-on-year increase in revenue)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsFirst quarter of the fiscal year ending December 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥40,585 million+5.8%
Operating profit¥1,566 million-1.8%
Ordinary income¥1,498 million-11.3%
Net income¥930 million-3.0%
Operating profit margin3.9 %
Results for the three months of the current quarter
Net Sales
¥40,585 million
Operating profit
¥1,566 million
Ordinary income
¥1,498 million
Profit attributable to owners of parent for the quarter
¥930 million
Full-year earnings forecast
Net Sales
¥174,800 million
Operating profit
¥8,950 million
Ordinary income
¥8,800 million
Profit attributable to owners of the parent
¥5,700 million
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Consolidated
Net Sales23.2
Operating profit17.5
Ordinary income17
Net income16.3
By segment
Food-Service Business
Net Sales23.4
Ordinary income16
Contract Operations
Net Sales23.1
Ordinary income21.1
Hotel Business
Net Sales23.1
Ordinary income19.6
Food Business
Net Sales22.6
Ordinary income55
Other Businesses
Net Sales21.5
Ordinary income12.3
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Hiring of both new graduates and mid-career employees is ahead of plan, and recruitment is progressing smoothlyBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Impact of raw material costsFirst quarter: +¥700 million
- Impact of electricity and gas costsFirst quarter: -¥100 million
- Total impact of higher procurement pricesFirst quarter: +¥600 million
- Full-year forecast for raw material costs+¥2.2 billion
- Full-year forecast for electricity and gas costs+¥200 million
- Total full-year impact+¥2.4 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Raw Material Costs2026 full-year forecast+¥2.2 billion
- Electricity and gas costs2026 full-year forecast+¥200 million
- Impact of the situation in the Middle EastNot quantified as of the present time
New initiatives
- Opening new stores in Japan and overseas and expanding overseas store openings
- Rolling out the Good JAPAN Hokkaido Fair across 4 brands
- Revising the core menus at Royal Host and other brands
- Expanding HANZO, an automated store ordering and demand forecasting system
- Building a data integration platform and ROI analysis platform using MyROYAL
- Integrating POS systems and introducing the AI Trainer and Polaris store management system
- Tier-based training through Royal Academy
- Reviewing materiality and KPIs for sustainability
Key KPIsA metric the company considers important as a management benchmark.
- Occupancy rate at directly operated hotels88.4 %Year on year against the same period last year+3.6 percentage points
- ADR at directly operated hotels¥13,453Year on year against the same period last year+¥778
- Inbound guest ratio28.5 %Year on year against the same period last year24.9% in the prior-year quarter
- Royal Host same-store sales104.1 %Year on year against the same period last year103.1% in the prior-year quarter
- Tenya same-store sales106.1 %Year on year against the same period last year105.6% in the prior-year quarter
- EBITDA¥3,843 millionYear on year against the same period last year+3.4%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Number of visitors99.2 % year on yearBusinessRoyal Host
- Average spend per customer105.8 % year on yearBusinessRoyal Host
- Number of visitors97.3 % year on yearBusinessTenya
- Average spend per customer109.1 % year on yearBusinessTenya
Segment results
Food-Service Business
Net Sales
¥16,938 million+5.3%
Ordinary income
¥640 million-37.3%
Contract Operations
Net Sales
¥12,222 million-0.7%
Ordinary income
¥612 million+27.8%
Hotel Business
Net Sales
¥10,135 million+10.6%
Ordinary income
¥1,392 million+28.9%
Food Business
Net Sales
¥3,477 million+15.5%
Ordinary income
¥110 million-31.8%
Other Businesses
Net Sales
¥86 million+11.2%
Ordinary income
¥111 million-55.4%
Medium-term management plan targets
Target fiscal yearFY2027
Net Sales¥187.5 billion
Ordinary income¥10 billion
ROE12%
EPS¥135
Equity ratio40%
DOE3.5%
Payout ratioTargeting 30%
Financial targets
ROE12% in fiscal 2027 (12% actual in fiscal 2024)
Equity ratio40% in fiscal 2027 (39% actual in fiscal 2024)
Number of stores and locations
Food-Service Business
End of period467
Stores opened during the period5
Stores closed during the period7
Airport stores
Number of locations13
Number of stores45
Expressway stores
Number of locations22
Sports and convention facilities
Number of locations15
Tenya overseas franchises
Number of stores18
Number of employees
New graduate hiring87
Experienced hires258
Of which, foreign nationals132
Assessment against hiring planHiring of both new graduates and mid-career employees is ahead of plan, and recruitment is progressing smoothly
Payout ratio
Targeting the medium-term management plan target of 30%| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | First quarter of the fiscal year ending December 2026 |
| Net Sales | ¥40,585 million (YoY +5.8%) |
| Operating profit | ¥1,566 million (YoY -1.8%) |
| Ordinary income | ¥1,498 million (YoY -11.3%) |
| Net income | ¥930 million (YoY -3.0%) |
| Operating profit margin | 3.9 % |
| Results for the three months of the current quarter | Net Sales ¥40,585 million / Operating profit ¥1,566 million / Ordinary income ¥1,498 million / Profit attributable to owners of parent for the quarter ¥930 million |
| Full-year earnings forecast | Net Sales ¥174,800 million / Operating profit ¥8,950 million / Ordinary income ¥8,800 million / Profit attributable to owners of the parent ¥5,700 million |
| Progress against full-year forecast | Consolidated Net Sales 23.2 / Operating profit 17.5 / Ordinary income 17 / Net income 16.3 / By segment Food-Service Business Net Sales 23.4 / Ordinary income 16 / Contract Operations Net Sales 23.1 / Ordinary income 21.1 / Hotel Business Net Sales 23.1 / Ordinary income 19.6 / Food Business Net Sales 22.6 / Ordinary income 55 / Other Businesses Net Sales 21.5 / Ordinary income 12.3 |
| Self-assessment against the plan | Hiring of both new graduates and mid-career employees is ahead of plan, and recruitment is progressing smoothly |
| Segment results | Food-Service Business Net Sales ¥16,938 million (YoY +5.3%) / Ordinary income ¥640 million (YoY -37.3%) / Contract Operations Net Sales ¥12,222 million (YoY -0.7%) / Ordinary income ¥612 million (YoY +27.8%) / Hotel Business Net Sales ¥10,135 million (YoY +10.6%) / Ordinary income ¥1,392 million (YoY +28.9%) / Food Business Net Sales ¥3,477 million (YoY +15.5%) / Ordinary income ¥110 million (YoY -31.8%) / Other Businesses Net Sales ¥86 million (YoY +11.2%) / Ordinary income ¥111 million (YoY -55.4%) |
| Breakdown of Factors Affecting the Change | Factors Impact of raw material costs / Amount First quarter: +¥700 million, Factors Impact of electricity and gas costs / Amount First quarter: -¥100 million, Factors Total impact of higher procurement prices / Amount First quarter: +¥600 million, Factors Full-year forecast for raw material costs / Amount +¥2.2 billion, Factors Full-year forecast for electricity and gas costs / Amount +¥200 million, Factors Total full-year impact / Amount +¥2.4 billion |
| Key KPIs | Indicator name Occupancy rate at directly operated hotels / Value 88.4 % / Year on year against the same period last year +3.6 percentage points, Indicator name ADR at directly operated hotels / Value ¥13,453 / Year on year against the same period last year +¥778, Indicator name Inbound guest ratio / Value 28.5 % / Year on year against the same period last year 24.9% in the prior-year quarter, Indicator name Royal Host same-store sales / Value 104.1 % / Year on year against the same period last year 103.1% in the prior-year quarter, Indicator name Tenya same-store sales / Value 106.1 % / Year on year against the same period last year 105.6% in the prior-year quarter, Indicator name EBITDA / Value ¥3,843 million / Year on year against the same period last year ¥3.4 million |
| Unit price and quantity metrics | Business Royal Host / Indicator Number of visitors / Value 99.2 % year on year, Business Royal Host / Indicator Average spend per customer / Value 105.8 % year on year, Business Tenya / Indicator Number of visitors / Value 97.3 % year on year, Business Tenya / Indicator Average spend per customer / Value 109.1 % year on year |
| Number of stores and locations | Food-Service Business End of period 467 / Stores opened during the period 5 / Stores closed during the period 7 / Airport stores Number of locations 13 / Number of stores 45 / Expressway stores Number of locations 22 / Sports and convention facilities Number of locations 15 / Tenya overseas franchises Number of stores 18 |
| Number of employees | New graduate hiring 87 / Experienced hires 258 / Of which, foreign nationals 132 / Assessment against hiring plan Hiring of both new graduates and mid-career employees is ahead of plan, and recruitment is progressing smoothly |
| Assumptions Underlying the Business Outlook | Item Raw Material Costs / 2026 full-year forecast +¥2.2 billion, Item Electricity and gas costs / 2026 full-year forecast +¥200 million, Item Impact of the situation in the Middle East / Value Not quantified as of the present time |
| Medium-term management plan targets | Target fiscal year FY2027 / Net Sales ¥187.5 billion / Ordinary income ¥10 billion / ROE 12% / EPS ¥135 / Equity ratio 40% / DOE 3.5% / Payout ratio Targeting 30% |
| Financial targets | ROE 12% in fiscal 2027 (12% actual in fiscal 2024) / Equity ratio 40% in fiscal 2027 (39% actual in fiscal 2024) |
| Payout ratio | Targeting the medium-term management plan target of 30% |
| New initiatives | Opening new stores in Japan and overseas and expanding overseas store openings, Rolling out the Good JAPAN Hokkaido Fair across 4 brands, Revising the core menus at Royal Host and other brands, Expanding HANZO, an automated store ordering and demand forecasting system, Building a data integration platform and ROI analysis platform using MyROYAL, Integrating POS systems and introducing the AI Trainer and Polaris store management system, Tier-based training through Royal Academy, Reviewing materiality and KPIs for sustainability |
Items this document does not state (9)
Gross Profit MarginSelling, general and administrative expensesRisk amount incorporated into the outlookAnnual DividendAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Revenue benefited from pricing revisions, growth at existing stores and new store openings. On the earnings side, higher raw material and labor costs in the Food Service and Food businesses, initial costs associated with new store openings, and lower equity-method investment gains were factors behind the decline in profit.
How to read this page
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