Zensho (7550) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2027 increased by 16.8% year-over-year to ¥324.8 billion, with operating income up 57.5% to ¥24.8 billion and net income nearly doubling to ¥15.1 billion (+89.2%).

• Growth was driven by strong performance in global segments, especially sushi (Hamasushi) and fast food (Sukiya), despite a challenging macro environment.

• The group opened 366 new restaurants/stores and closed 191, ending the quarter with 15,122 locations globally.

• The business environment remained uncertain due to geopolitical tensions, U.S. trade policy, FX volatility, and weak domestic consumer sentiment amid inflation.

Financial highlights

• Gross margin improved as cost of goods sold ratio decreased by 1.3 percentage points year-over-year.

• Operating cash flow increased by 73.3% to ¥25.3 billion.

• Segment sales: Global Hamasushi +¥22.7 billion (+32.2%), Global Sukiya +¥14.9 billion (+22.7%), Global Prepared Food +¥4.6 billion (+10.7%).

• Operating profit margin rose to 7.6% from 5.7% year-over-year.

• Comprehensive income surged to ¥21.8 billion from ¥2.2 billion a year earlier.

Outlook and guidance

• Full-year revenue forecast revised down by 1.5% to ¥1,402 billion due to accounting policy changes, but operating income forecast raised by 10.9% to ¥102 billion and net income forecast up 8% to ¥54 billion.

• Full-year EPS forecast is 321.99 yen; dividend forecast raised to 80 yen per share.

• Profitability expected to improve, with operating margin forecast at 7.3% for the year.