Eternal Hospitality Group released its results for the fiscal year ended July 2026. Domestic existing-store sales at its core Torikizoku brand increased, but operating profit declined, while losses in the overseas business also widened.
Eternal Hospitality Group released consolidated results for the fiscal year ended July 2026, reporting revenue of ¥51.254 billion (up 10.6% year on year), operating profit of ¥2.797 billion (down 10.4%), ordinary profit of ¥2.8 billion (down 9.8%), and net profit of ¥1.318 billion (down 23.4%). The results fell short of the full-year forecast.
Existing-store sales at domestic Torikizoku restaurants remained firm. Sales by segment comprised company-operated stores, eastern Japan, western Japan, overseas and other, with domestic company-operated stores accounting for more than 90% of sales. Meanwhile, overseas start-up losses, including those from company-operated stores in Shanghai, widened, partly due to the closure of four Shanghai restaurants.
Torikizoku's existing stores increased both customer traffic and average spend per customer. Existing-store sales at company-operated restaurants were 106.7% of the previous fiscal year's level, with customer traffic at 103.8% and average spend per customer at 102.8%. Higher store-opening costs and labor expenses, as well as overseas losses, pressured profits.
The company substantially lowered its numerical targets for the fiscal year ending July 2027, the final year of its medium-term management plan. The operating profit target was halved, changed from ¥6 billion to ¥3.078 billion. The overseas revenue target was also reduced, changed from ¥6 billion to ¥2.075 billion.
The company carried out a stock split and established new shareholder-benefit tiers for shareholders registered after the end of January 2027. The revised benefits include ¥1,000 equivalent for 100 to 199 shares and ¥2,000 equivalent for 200 to 599 shares.