FY2027 Q1: assessing the initial progress toward achieving the full-year forecast

Consolidated revenue was ¥16,730 million, operating profit was ¥638 million and ordinary profit was ¥576 million in FY2026. Year on year, revenue increased 11.1%, operating profit increased 9.8% and ordinary profit increased 4.3%, while net income attributable to owners of the parent fell 28.2% to ¥222 million. In contrast, the company forecasts revenue of ¥18,000 million, operating profit of ¥800 million, ordinary profit of ¥750 million and net income of ¥350 million for FY2027, implying growth of 25.2% in operating profit and 57.1% in net income.

As the company has not disclosed quarterly forecasts, the figures obtained by simply dividing the annual forecast by 4 for the next FY2027 Q1 do not represent the company’s plan itself. It is reasonable to use revenue of ¥4,500 million, operating profit of ¥200 million, ordinary profit of ¥187.5 million and net income of ¥87.5 million as mechanical reference points that do not take seasonality into account, and to assess them alongside year-on-year changes. In FY2026 Q1, revenue was ¥4,158 million, operating profit was ¥264 million, ordinary profit was ¥249 million and net income attributable to owners of the parent was ¥148 million.

The company cites the normalization of economic activity, increased demand for eating out and inbound demand as the background to its performance. At the same time, it identifies the shortage of personnel and higher food, energy and raw material costs as ongoing headwinds. In the next results release, it will be important to assess not only revenue growth but also whether the operating margin can be maintained. The consolidated operating margin for FY2026 was approximately 3.8% based on the calculation, while achieving the FY2027 forecast of ¥800 million in operating profit on revenue of ¥18,000 million requires an improvement to approximately 4.4%.

The company has traditionally not prepared a quarterly consolidated statement of cash flows for Q1, so cash, borrowings, leasehold and other deposits, and balances related to capital expenditures on the balance sheet need to be reviewed alongside the income statement. The scheduled results announcement is listed as 10 November 2026. The four matters to assess this time are year-on-year changes in Q1 results, whether the full-year forecast is maintained or revised, whether margins improve, and whether the increase in demand is temporary.