Genki Global Dining Concepts (9828) Q2 2026 earnings summary

Executive summary

• Achieved record-high sales for the first half of FY2026, with revenue up 4.2% year-over-year to ¥35,205 million, but profit declined due to rising costs, especially rice prices and labor expenses.

• Domestic business saw increased customer numbers and higher average spend, supporting steady sales growth, but segment profit fell 22.2%.

• Global business faced a 3.2% revenue decline and a 6.3% profit drop due to yen appreciation and lower US subsidiary sales, though the US subsidiary remained profitable.

• The group focused on strengthening procurement, marketing, and global strategy, including acquiring two seafood processing companies and entering land-based salmon farming.

Financial highlights

• Consolidated sales: ¥35,205 million, up 4.2% year-over-year; operating profit: ¥3,108 million, down 20.4% year-over-year; net profit: ¥2,106 million, down 18.1% year-over-year.

• Operating margin at 8.8%; EBITDA: ¥4,053 million, down 16.9% year-over-year.

• EPS: ¥119.27, down from ¥145.66 year-over-year.

• Total sales (including franchisee and overseas store sales): ¥67,757 million, up 1.7% year-over-year.

• Comprehensive income: ¥2,100 million, down 14.1% year-over-year.

Outlook and guidance

• Full-year sales forecast maintained at ¥72,300 million; operating profit forecast revised down to ¥5,100 million due to higher food and labor costs.

• Net profit forecast revised to ¥4,100 million; EPS forecast at ¥232.17.

• Dividend forecast unchanged at ¥70 per share for the year.

• Focus on cost control and customer acquisition to secure earnings.