Fourth-quarter profit buildup needed to meet full-year forecast

For the nine months ended May 2026, revenue was ¥6,926 million, up 21.6% year on year; operating profit was ¥480 million, up 27.9%; ordinary profit was ¥463 million, up 36.4%; and net income was ¥307 million, up 37.5%. Revenue, operating profit, ordinary profit and net income all exceeded the year-earlier period, indicating strong earnings momentum at this stage.

The full-year forecasts remain unchanged at revenue of ¥9,590 million, operating profit of ¥596 million, ordinary profit of ¥565 million and net income of ¥339 million. Based on the nine-month results, the fourth quarter would need to generate approximately ¥2,663 million in revenue and ¥115 million in operating profit to meet the full-year forecasts. The nine-month operating margin was approximately 6.9%, while the operating margin required for the remaining period is approximately 4.3%, suggesting that the hurdle does not appear excessively high based on profit alone.

However, the company's earnings presentation does not explicitly state progress against the full-year forecasts, its assessment of performance against plan, or the revenue and profit levels required in the fourth quarter. The presentation for the first quarter explained that quarters closer to the fiscal year-end account for a larger share of annual revenue and that profit tends to be lower in the first quarter than in other quarters. It is therefore difficult to assess performance simply by comparing nine-month results with 75%. At the same time, the company has not provided specific disclosure on fourth-quarter seasonality or the timing of store-opening costs.

At the next earnings release, we will look to see whether standalone fourth-quarter revenue and operating profit are disclosed and whether the company explains the extent to which the full-year forecast was exceeded or missed. In particular, it will be important to determine whether revenue exceeded approximately ¥2,663 million and operating profit exceeded approximately ¥115 million, which of the ramen and restaurant businesses generated the additional profit, and whether the full-year forecast or outlook for the next fiscal year was revised.