The interim period turned profitable, with operating profit ahead of the full-year forecast on a progress basis

For the interim period from January to June 2026, revenue was ¥7,922 million, operating profit was ¥132 million, ordinary profit was ¥141 million, and interim net profit was ¥91 million. Revenue increased 12.6% year on year, while operating, ordinary and net profit all turned positive from the previous year's operating loss of ¥121 million, ordinary loss of ¥118 million and interim net loss of ¥189 million. The improvement in the interim period is important not only because of the increase in revenue, but also because it was accompanied by a recovery in the operating margin.

The full-year forecast presented with the interim results was revenue of ¥16,487 million, operating profit of ¥226 million, ordinary profit of ¥246 million and net profit of ¥160 million. Revenue progress was approximately 48.1%, calculated as ¥7,922 million divided by ¥16,487 million, while operating profit reached approximately 58.4%, calculated as ¥132 million divided by ¥226 million. Ordinary profit and net profit reached approximately 57.3% and 56.9%, respectively. On a simple calculation, achieving the full-year forecast requires second-half revenue of ¥8,565 million, operating profit of ¥94 million, ordinary profit of ¥105 million and net profit of ¥69 million. In FY2026-Q3, the extent to which nine-month cumulative profit exceeds the interim-period operating profit of ¥132 million will be a basis for assessing the certainty of the full-year forecast.

At the interim results, the company indicated that an earnings forecast revision from the latest forecast had been made and presented new figures after the revision. However, the pre-revision forecasts for revenue, operating profit, ordinary profit and net profit, as well as the revision amounts for each item, have not been disclosed. Accordingly, the public materials do not fully clarify whether the ¥226 million operating profit forecast is a conservative build-up or a target following an upward revision reflecting first-half results. At the next results announcement, even if the full-year forecast is maintained, it will be necessary to confirm the assumption that the factors behind the first-half improvement will continue in the second half.

The key issue to monitor is the repeatability of operating profit rather than revenue seasonality. Although profit progress outpaced revenue in the first half, securing ¥94 million in second-half operating profit will require the continuation of measures at existing stores in the Ikinari! Steak business and strong delivery performance, without a significant expansion of losses in the restaurant business and other operations. In FY2026-Q3, in addition to nine-month cumulative revenue and operating profit, the remaining amounts against the full-year forecast and whether the forecast has been changed, we will look to determine whether the profit improvement resulted from better store profitability rather than a temporary special factor.