These are mechanically computed values based on a residual income model. They are not a forecast of market prices or a recommendation of any investment action, and do not predict or guarantee future share prices. Historical values are computed retrospectively using current guidance-achievement statistics.
| Metric | Current Period | Same Period Last Year | YoY |
|---|---|---|---|
| Revenue | ¥75.9B | ¥69.1B | +9.8% |
| Operating Income | ¥3.2B | ¥2.6B | +22.2% |
| Ordinary Income | ¥3.3B | ¥2.7B | +23.4% |
| Net Income | ¥1.8B | ¥1.3B | +30.3% |
| ROE | 2.4% | 1.9% | - |
Revenue and earnings increased this quarter. In addition to higher revenue driven by price revisions and the recovery in customer visits, an improvement in the SG&A ratio pushed up Operating Income. Revenue was ¥75.9B (+9.8% YoY), Operating Income was ¥3.2B (+22.2%), Ordinary Income was ¥3.3B (+23.4%), and Net Income was ¥1.8B (+30.3%). While the Operating Margin improved to 4.3% from 3.8% in the same period last year, progress against the full-year plan was 24.1% for Revenue, 20.3% for Operating Income, and 14.0% for Net Income, all below the 25% level implied by simple straight-line progress, indicating that the plan is weighted toward the second half.
【Revenue】Revenue increased 9.8% YoY to ¥75.9B. Although disclosure by segment is unavailable, the recovery in customer traffic at existing stores and the penetration of price revisions appear to have contributed.
【Profit and Loss】Cost of sales increased to ¥24.0B (cost ratio: 31.7%, compared with 30.4% in the same period last year), resulting in a Gross Margin of 68.3%, down -1.3pt from 69.6% in the same period last year. Meanwhile, SG&A expenses were ¥48.6B (SG&A ratio: 64.1%), an improvement of -1.6pt from 65.7% in the same period last year. As the improvement in the SG&A ratio exceeded the decline in the Gross Margin, the Operating Margin improved to 4.3% (3.8% in the same period last year). Operating Income was ¥3.2B (+22.2%) and Ordinary Income was ¥3.3B (+23.4%). Although an Extraordinary Loss of ¥0.3B (including an impairment loss of ¥0.1B) was recorded as a temporary factor, the decline in the effective tax rate to 41.5% (46.0% in the same period last year) also supported Net Income growth, resulting in Net Income of ¥1.8B (+30.3%). The company achieved higher revenue and earnings by absorbing rising costs through SG&A expense reductions and an improved tax burden.
【Profitability】The Operating Margin improved to 4.3% (3.8% in the same period last year), and the Net Profit Margin improved to 2.3% (1.9% in the same period last year). However, the Gross Margin was 68.3%, down from 69.6% in the same period last year, indicating the impact of rising costs.【Cash Flow Quality】Although the effective tax rate improved to 41.5% (46.0% in the same period last year), it remains high. Non-operating income and expenses were limited to income of ¥0.4B and expenses of ¥0.3B, respectively, indicating a high degree of reliance on core operations.【Investment Efficiency】ROE was 2.4%, while the total asset turnover ratio increased to 0.61x (0.51x in the same period last year), indicating improved asset efficiency through both asset reduction and revenue growth.【Financial Soundness】The Equity Ratio was 58.0% (equivalent to 53.1% in the same period last year), the Current Ratio was 123.9%, and interest coverage based on Operating Income was 155.8x, indicating substantial financial capacity.
As the company does not disclose a cash flow statement, its funding trends are assessed based on changes in the balance sheet. Cash and deposits were ¥33.8B, down -27.6% from ¥46.7B in the same period last year. Together with Current Liabilities of ¥37.9B, down -21.9% from ¥48.5B in the same period last year, this suggests that cash outflows associated with liability reduction, such as the repayment of short-term borrowings, were the primary factor. Property, plant and equipment increased +5.0% to ¥59.6B from ¥56.8B in the same period last year, indicating that maintenance and renewal investment in stores is continuing. The composition of Accounts Receivable of ¥7.2B, Accounts Payable of ¥10.2B, and Inventories of ¥3.0B represents a working capital structure in which trade payables exceed trade receivables, a structure that tends to contribute to cash generation from operating activities.
Non-operating income and expenses were limited in scale, at income of ¥0.4B and expenses of ¥0.3B, respectively, and remained below 1% of Revenue, indicating low reliance on non-operating factors. The Extraordinary Loss of ¥0.3B (including an impairment loss of ¥0.1B) was a temporary factor and is not of a nature that would significantly impair recurring earnings power. The difference between Ordinary Income of ¥3.3B and Net Income of ¥1.8B was primarily attributable to income taxes of ¥1.2B (effective tax rate: 41.5%). Although the effective tax rate improved from 46.0% in the same period last year, it remains high, and the structural constraint imposed by the heavy tax burden on the conversion of Operating Income into Net Income continues.
Against the full-year plan (Revenue of ¥315.0B, Operating Income of ¥16.0B, Ordinary Income of ¥16.0B, and Net Income of ¥12.5B), Q1 progress was 24.1% for Revenue, 20.3% for Operating Income, 20.6% for Ordinary Income, and 14.0% for Net Income, all below the 25% level implied by simple straight-line progress. The full-year plan assumes an Operating Margin of 5.1% (¥16.0B/¥315.0B), requiring further earnings improvement from the Q1 actual result of 4.3%. The annual dividend forecast is ¥15.00, with no revision as of the end of this quarter.
The company’s annual dividend plan is ¥15.00, with no revision as of the end of this quarter. The Payout Ratio against forecast EPS of ¥65.4 is approximately 22.9%. Together with financial indicators such as interest coverage based on Operating Income of 155.8x and an Equity Ratio of 58.0%, the company appears to have sufficient financial capacity to pay the dividend.
Rising raw material and energy costs: The Gross Margin was 68.3%, down -1.3pt from 69.6% in the same period last year, reflecting the impact of rising costs. Future trends in food ingredient and energy prices will continue to affect the Gross Margin.
Persistently high tax burden: The effective tax rate improved somewhat to 41.5% (46.0% in the same period last year) but remains high and is a factor constraining Net Income growth.
Asset retirement obligations: Asset retirement obligations were ¥9.8B, accounting for 18.8% of total liabilities. Future cash outflows associated with store closures and restoration obligations are a point of consideration in the company’s financial structure.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 4.3% | 3.3% (0.9%–7.7%) | +0.9pt |
| Net Profit Margin | 2.3% | 2.2% (0.3%–6.1%) | +0.1pt |
Both the Operating Margin and Net Profit Margin exceed the industry median, placing the company’s profitability in the middle-to-upper range among peers.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 9.8% | 7.5% (0.4%–14.5%) | +2.3pt |
The Revenue Growth Rate exceeds the industry median but does not reach the IQR upper bound of 14.5%, placing growth in the middle-to-upper range within the industry.
Source: Compiled by the Company
The Operating Margin improved to 4.3% (3.8% in the same period last year), while the Gross Margin declined to 68.3% from 69.6% in the same period last year. This reflects a structure in which rising costs were absorbed through an improvement in the SG&A ratio (64.1%, compared with 65.7% in the same period last year).
Full-year progress was 24.1% for Revenue, 20.3% for Operating Income, and 14.0% for Net Income, below the level implied by simple straight-line progress. Accelerating the pace of earnings improvement in the second half is therefore necessary to achieve the plan.
Although the effective tax rate improved to 41.5% (46.0% in the same period last year), it remains high. If the tax burden is normalized, this could provide additional upside potential for Net Income.
The following is a mechanically calculated reference range based solely on publicly disclosed data using a residual income model (Ohlson-type model with an explicit five-year fade period). It is not a forecast of the market share price or a recommendation of any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | ¥436 |
| base | ¥470 |
| bull | ¥488 |
| Calculation Assumption | Value |
|---|---|
| Book Value per Share (BPS) | ¥376 |
| Adjusted Forecast EPS | ¥67.2 |
| Cost of Equity r | 9.77% (10-year government bond 2.77% + equity risk premium 6.00% + size premium 1.00%) |
| Persistence Coefficient of Residual Income ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 22.9% |
| Forecast EPS Confidence Adjustment | ×1.028 (based on the industry’s historical guidance achievement rate) |
| Implied PBR / PER |
Sensitivity: ¥456–¥484 at Cost of Equity ±1%, and ¥468–¥474 at ω±0.1.
Notes:
(Calculation model: Residual Income Model / Interest rate reference month: 2026-07 / This value does not forecast or guarantee the future share price)
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the company based on publicly disclosed earnings data. Investment decisions should be made at your own responsibility, and after consulting a professional as necessary.
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| 1.25x / 7.0x |