Revenue grew following price revisions, but the operating loss widened

First-quarter FY2027 revenue was ¥7,406 million, up ¥277 million, or 3.9%, from ¥7,129 million in the same period of the previous year. While price revisions and product initiatives lifted revenue, operating performance deteriorated by ¥115 million, from an operating loss of ¥350 million in the same period of the previous year to an operating loss of ¥465 million. The operating margin calculated from these figures declined by approximately 1.4 percentage points, from approximately -4.9% in the same period of the previous year to approximately -6.3%.

The company cites higher food and labor costs, as well as renovation investments and promotional initiatives to revitalize existing stores, as factors behind the wider operating loss. However, it has not disclosed how many millions of yen each of food costs, labor costs, renovations and promotions contributed to the decline in profit, nor the amount of additional revenue generated by price revisions. It is therefore also not possible to determine whether revenue growth resulted from a recovery in customer numbers or an increase in average spend per customer.

In FY2027-H1, in addition to cumulative revenue growth year on year, the extent to which the operating margin recovers from -6.3% in the first quarter will be important. If the operating loss continues to exceed the ¥350 million recorded in the same period of the previous year despite higher revenue, costs, labor expenses and investment burdens may be outweighing the benefits of the price revisions. We will check whether same-store sales, customer numbers, average spend per customer, the food-cost ratio and the labor-cost ratio are disclosed, together with explanations of the amounts attributable to each factor.