FY2027-H1 revenue growth was driven primarily by M&A and store-count effects; the next focus is the self-sustaining growth of existing stores

FY2027-H1 revenue was ¥41,694 million, up 12.0% year on year. Growth accelerated from first-quarter revenue of ¥19,028 million, which was up 6.5% year on year, as M&A, new store openings and higher average spend per customer drove revenue growth. The full-year revenue forecast was revised to ¥94,300 million, representing a 44.2% progress rate at the interim stage. Based on the full-year plan, the company needs to generate ¥52,606 million in revenue in the second half.

However, the increase in consolidated revenue cannot be treated as equivalent to the growth capacity of existing stores. In FY2027-H1, acquired businesses including Kyotaru were added to the scope of consolidation, bringing the group store count to 958, including the M&A effect. Accordingly, at the next results announcement, it will be important to disclose revenue from acquisitions, new store openings, existing stores and franchise operations separately. In particular, if average spend per customer is rising while customer traffic at existing stores remains below the year-earlier level, attention will be needed on the sustainability of revenue after the impact of price increases has run its course.

Next time, we will review year-on-year existing-store sales, customer traffic and average spend per customer by major format. The focus will be whether formats including Washoku Sato, Nigiri Chojiro and Umai Sushikan have shifted to sales growth accompanied by higher customer traffic. We will also assess whether progress toward full-year revenue of ¥94,300 million remains broadly in line with the interim rate of 44.2%, and whether the ¥52,606 million required in the second half can be achieved through improvements in existing stores rather than seasonality alone.