Zensho (7550) Q4 2026 earnings summary

Executive summary

• Net sales rose 11.2% year-over-year to ¥1,264,053 million, with operating profit up 8.4% to ¥81,440 million and profit attributable to owners of parent up 16.6% to ¥45,812 million.

• The business environment was challenged by geopolitical risks, inflation, and rising raw material costs, but segment sales growth was robust, especially in Global Hamasushi and Global Prepared Food.

• The number of restaurants and stores at year-end was 14,947, with 1,042 openings and 1,514 closures.

Financial highlights

• Operating margin was 6.4%, ROE 15.8%, and ROA 8.8% for the year ended March 31, 2026.

• Cash and cash equivalents increased to ¥128,054 million, up ¥48,359 million from the prior year.

• Free cash flow was ¥23,087 million, with strong cash flow from operating activities at ¥101,177 million.

• Total assets grew to ¥960,362 million, and net assets to ¥341,449 million, driven by the issuance of Series 1 Bond-type class shares and retained earnings.

Outlook and guidance

• For FY ending March 31, 2027, net sales are forecast to rise 12.7% to ¥1,424,000 million, with operating profit up 13.0% to ¥92,000 million and profit attributable to owners of parent up 9.1% to ¥50,000 million.

• The business environment is expected to remain uncertain due to ongoing geopolitical risks, trade policy developments, and raw material price volatility.