Notice Concerning the Recording of an Extraordinary Loss and Differences Between Individual Financial Results and the Previous Fiscal Year's Actual Results
Genki Global Dining Concepts Co., Ltd. (the Company)
Assets at stores and other locations whose profitability had declined, and store fixed assets
The carrying amounts of assets at stores and other locations whose profitability had declined were reduced to their recoverable amounts. The deterioration in profitability was due to higher food ingredient prices, increased costs associated with the rise in the minimum wage, and the recognition of impairment losses on store fixed assets.
Impairment loss of ¥681 million (extraordinary loss). Cumulative extraordinary losses for the fiscal year comprised an impairment loss of ¥707 million and a ¥7 million loss on cancellation of lease agreements, for a total of ¥715 million.
Fourth quarter of the fiscal year ending March 2026 (¥681 million impairment loss); fiscal year ending March 2026 (¥715 million cumulative extraordinary losses)
| Item | Details |
|---|---|
| Event name | Notice Concerning the Recording of an Extraordinary Loss and Differences Between Individual Financial Results and the Previous Fiscal Year's Actual Results |
| Date of occurrence | Fourth quarter of the fiscal year ending March 2026 (no specific date stated) |
| Subject Entity | Genki Global Dining Concepts Co., Ltd. (the Company) |
| Target Locations / Products | Assets at stores and other locations whose profitability had declined, and store fixed assets |
| Cause | The carrying amounts of assets at stores and other locations whose profitability had declined were reduced to their recoverable amounts. The deterioration in profitability was due to higher food ingredient prices, increased costs associated with the rise in the minimum wage, and the recognition of impairment losses on store fixed assets. |
| Amount of Impact on Business Performance | Impairment loss of ¥681 million (extraordinary loss). Cumulative extraordinary losses for the fiscal year comprised an impairment loss of ¥707 million and a ¥7 million loss on cancellation of lease agreements, for a total of ¥715 million. |
| Accounting period in which recognized | Fourth quarter of the fiscal year ending March 2026 (¥681 million impairment loss); fiscal year ending March 2026 (¥715 million cumulative extraordinary losses) |
Items this document does not state (18)
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.The impairment loss was recognized because the carrying amounts of assets whose profitability had declined were reduced to their recoverable amounts. The deterioration in profitability was attributed to higher food ingredient prices, increased costs associated with the rise in the minimum wage, and the recognition of impairment losses on store fixed assets. The increase in revenue was attributed to higher customer traffic resulting from stronger sales promotion activities using social media and other channels, as well as a review of the menu lineup to offer greater value for money.