Zensho (7550) Q4 2026 earnings summary

Executive summary

• FY2025 sales rose 11.2% year-over-year to ¥1,264.0 billion, with operating profit up 8.4% to ¥81.4 billion and net profit up 16.6% to ¥45.8 billion.

• Segment growth was led by Global Hamasushi and Global Sukiya, with strong contributions from store openings and same-store sales.

• The business environment was challenged by geopolitical risks, inflation, and rising raw material costs, but segment sales growth was robust.

• Cash flows from operating activities increased 28.1% year-over-year to ¥101.1 billion.

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

Financial highlights

• Cost of sales increased 12.3% year-over-year, slightly outpacing sales growth, while SG&A rose 10.6%.

• Operating margin was 6.4%, and net margin was 3.6% for FY2025.

• Balance sheet showed total assets of ¥960.3 billion as of March 31, 2026, up ¥147.2 billion from the prior year.

• Paid-in capital increased by ¥48.5 billion, and retained earnings rose by ¥33.9 billion.

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

Outlook and guidance

• FY2026 sales are forecast to grow 12.7% to ¥1,424.0 billion, with operating profit expected to rise 13.0% to ¥92.0 billion.

• Net profit is projected to increase 9.1% to ¥50.0 billion, and operating cash flow is forecast at ¥119.1 billion.

• Capital investment is planned at ¥92.0 billion, with 1,319 new stores expected to open, bringing the total to 15,923.

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