Zensho (7550) Q1 2026 earnings summary

Executive summary

• Net sales for 1Q FY2025 rose 8.9% year-over-year to ¥290.4 billion, driven by strong same-store sales and new store openings, but operating profit declined 8.7% to ¥15.7 billion and net profit dropped 25.7% to ¥8.0 billion due to higher costs.

• Segment restructuring separated overseas take-out sushi into a new "Global Prepared Food" segment, now reporting seven segments.

• The business faced higher input costs, especially rice and imported beef, amid global uncertainties, but personal consumption rebounded.

Financial highlights

• Cost of sales increased 12.1% year-over-year, reaching 46.2% of total sales, while SG&A expenses rose 8.4% year-over-year.

• Operating profit was ¥15,754 million, down 8.7% year-over-year; ordinary profit was ¥15,570 million, down 8.5%.

• Gross profit increased to ¥134,228 million from ¥119,739 million year-over-year.

• Comprehensive income fell sharply to ¥2,158 million from ¥24,867 million year-over-year.

• Cash flows from operating activities improved 53.7% year-over-year to ¥14.6 billion.

Outlook and guidance

• Full-year FY2025 sales forecast remains unchanged at ¥1,223.5 billion, up 7.6% year-over-year, with operating profit projected at ¥82.0 billion (up 9.1%) and net profit forecast at ¥42.5 billion (up 8.2%).

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