| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥1027.7B | ¥961.9B | +6.8% |
| Operating Income | ¥65.6B | ¥52.2B | +25.6% |
| Equity-method Investment Income | ¥0.5B | ¥0.2B | +173.7% |
| Ordinary Income | ¥71.1B | ¥55.7B | +27.6% |
| Net Income | ¥42.0B | ¥30.6B | +37.3% |
| ROE | 7.0% | 5.6% | - |
For the fiscal year ended March 2026, Revenue was ¥1,027.7B (YoY +¥65.9B, +6.8%), Operating Income was ¥65.6B (YoY +¥13.4B, +25.6%), Ordinary Income was ¥71.1B (YoY +¥15.4B, +27.6%), and Net Income attributable to owners of the parent was ¥42.0B (YoY +¥11.4B, +37.3%), achieving both top-line and bottom-line growth. Price optimization and SG&A efficiency in the domestic Mos Burger business contributed, driving an improvement in Operating Margin to 6.4% (previous year 5.4%) (+1.0pt) and Net Margin to 4.1% (previous year 3.2%) (+0.9pt). Although Gross Margin declined 0.7pt to 46.5% (previous year 47.2%), SG&A ratio improved 1.7pt to 40.1% (previous year 41.8%), revealing operating leverage.
[Revenue] Revenue of ¥1,027.7B (YoY +6.8%) was composed mainly of the Domestic Mos Burger Business at ¥839.9B (share 81.7%, YoY +9.7%), Overseas Business at ¥154.8B (share 15.1%, -6.8%), New Restaurant Business at ¥21.6B (share 2.1%, +7.8%), and Other Businesses at ¥27.4B (share 2.7%, +4.8%). Domestic Mos’s revenue growth was driven by price and product mix improvements at existing stores and resilient customer traffic, while Overseas declined due to slowing local demand and forex effects. The regional breakdown shows a high concentration of over 80% in domestic sales, meaning company-wide growth sustainability heavily depends on same-store trends in Domestic Mos.
[Profitability] Cost of sales was ¥550.2B (cost ratio 53.5%), Gross Profit was ¥477.5B (Gross Margin 46.5%), down 0.7pt from last year’s 47.2%. SG&A was ¥411.9B (SG&A ratio 40.1%), improving 1.7pt from 41.8% a year earlier, offsetting the slight decline in Gross Margin and lifting Operating Margin. Operating Income of ¥65.6B (Operating Margin 6.4%) represented a YoY increase of +25.6%, demonstrating strong operating leverage. Non-operating income totaled ¥10.4B (interest income ¥1.6B, dividend income ¥1.4B, equity-method investment gains ¥0.5B, etc.), and non-operating expenses were ¥4.9B (interest expenses ¥1.8B, fees ¥0.8B, etc.), resulting in Ordinary Income of ¥71.1B (Ordinary Income Margin 6.9%). Special gains were ¥1.9B (gain on sale of fixed assets ¥1.7B, gain on sale of investment securities ¥0.4B) and special losses were ¥7.6B (impairment losses ¥5.0B, loss on retirement of fixed assets ¥2.6B), bringing Profit Before Tax to ¥65.3B. After deducting income taxes of ¥19.6B (effective tax rate 30.0%) and adjusting for Net Income attributable to non-controlling interests of -¥0.1B, Net Income was ¥42.0B (Net Margin 4.1%), a substantial YoY increase of +37.3%. In conclusion, SG&A efficiency in Domestic Mos and stable contribution from non-operating income absorbed special losses, enabling revenue and profit growth.
Domestic Mos Burger Business remained the core with Revenue of ¥841.8B (YoY +9.7%), Operating Income ¥78.8B (YoY +22.9%), and Operating Margin 9.4%. Overseas Business saw Revenue ¥154.8B (-6.8%), Operating Income ¥3.3B (-32.5%), and Operating Margin 2.1%, underperforming. New Restaurant Business recorded Revenue ¥21.6B (+7.8%) and an Operating Loss of ¥2.1B (previous year -¥0.6B), Operating Margin -9.7%, with widening losses. Other Businesses posted Revenue ¥27.4B (+4.8%) and Operating Income ¥5.7B (-3.9%), Operating Margin 20.8%, showing high profitability. The contrast between high margins in Domestic Mos and low profitability overseas is stark, with Domestic Mos generating approximately 92% of consolidated Operating Income (pre-adjustments). Improving overseas profitability and returning the New Restaurant Business to profit are the next growth drivers.
[Profitability] Operating Margin 6.4% (previous year 5.4%, +1.0pt), Ordinary Income Margin 6.9% (previous year 5.8%, +1.1pt), Net Margin 4.1% (previous year 3.2%, +0.9pt) — all improved. ROE was 7.0% (previous year 5.8%, +1.2pt), reflecting improved returns on a solid equity base. [Cash Quality] Operating Cash Flow / Net Income was 2.20x (=¥92.2B/¥42.0B), Accrual Ratio -4.9% (=(Net Income ¥42.0B - Operating CF ¥92.2B)/Total Assets ¥873.4B), indicating strong cash backing of earnings. Operating CF / EBITDA (¥106.2B = Operating Income ¥65.6B + Depreciation ¥40.6B) was 0.87x, showing steady cash generation. [Investment Efficiency] Total Asset Turnover was 1.18x (=¥1,027.7B/¥873.4B), and Capex/Depreciation was 0.82x (=¥33.2B/¥40.6B), indicating investment for renewal and efficiency. Intangibles rose to ¥30.7B (YoY +38.9%), reflecting system and brand investments and increasing sensitivity in future impairment testing. [Financial Soundness] Equity Ratio 68.3% (previous year 67.4%, +0.9pt), Current Ratio 228.2%, Quick Ratio 208.5% — extremely healthy. With interest-bearing debt of ¥17.4B and cash & deposits of ¥276.9B, the company is effectively net cash: Debt/Equity 0.029x, Debt/EBITDA 0.16x, Interest Coverage 36.3x (=Operating Income ¥65.6B / Interest Expense ¥1.8B), indicating ample credit capacity.
Operating CF was ¥92.2B (YoY +25.5%). Adding back non-cash items — Profit Before Tax ¥65.3B, Depreciation ¥40.6B, Impairment Losses ¥5.0B, etc. — and adjusting working capital where Accounts Receivable increased ¥5.0B, Inventories increased ¥1.1B, Accounts Payable was flat, and Other Payables increased ¥9.3B, resulted in an Operating CF subtotal of ¥110.4B after deducting income taxes paid ¥19.9B. Investing CF was -¥32.1B, driven by capital expenditures ¥33.2B and intangible asset acquisitions ¥12.2B, partially offset by proceeds from sale of fixed assets ¥6.9B and sale/redemption of investment securities ¥8.2B. Financing CF was -¥35.3B, mainly due to dividends ¥9.4B, share buybacks ¥0.8B, repayment of long-term borrowings ¥7.2B, and lease liabilities repayment ¥18.7B. Free Cash Flow was ¥60.1B (=Operating CF ¥92.2B + Investing CF -¥32.1B), comfortably covering dividends and share buybacks totaling ¥10.2B by 5.9x. Cash and cash equivalents at period-end increased to ¥276.8B (period-beginning ¥252.9B, +¥23.9B), maintaining high financial flexibility.
Recurring earnings consist of Operating Income ¥65.6B and stable non-operating income (total ¥10.4B from interest income ¥1.6B, dividend income ¥1.4B, equity-method investment gains ¥0.5B, etc.), with non-operating income representing 1.0% of Revenue, indicating limited reliance on non-core activities. One-off items comprised Special Gains ¥1.9B (gain on sale of fixed assets ¥1.7B, gain on sale of investment securities ¥0.4B) and Special Losses ¥7.6B (impairment losses ¥5.0B, loss on retirement of fixed assets ¥2.6B), which reduced Net Income by ¥5.7B net. The gap between Ordinary Income ¥71.1B and Net Income ¥42.0B is attributable to the effective tax rate of 30.0% and the impact of special items; the relative impact of special items on Net Income is approximately 13.6% (=¥5.7B/¥42.0B). Operating CF / Net Income is 2.20x, and the Accrual Ratio -4.9% is within a favorable range, indicating strong cash backing. Comprehensive Income was ¥59.6B (Net Income ¥42.0B + Other Comprehensive Income ¥13.9B), supported by valuation gains on investment securities ¥6.3B and share of other comprehensive income of equity-method affiliates ¥7.2B, indicating accumulated unrealized gains on the balance sheet.
Against the full-year guidance (Revenue ¥1,100B; Operating Income ¥57.5B; Ordinary Income ¥57.0B; Net Income ¥36.0B; EPS ¥116.67; Dividend ¥17), actual results were Revenue ¥1,027.7B (achievement 93.4%), Operating Income ¥65.6B (114.1%), Ordinary Income ¥71.1B (124.7%), and Net Income ¥42.0B (116.7%). While Revenue fell short of plan, profits significantly exceeded guidance as price/product mix improvements and SG&A efficiency outperformed company assumptions. EPS was ¥148.66 (forecast ¥116.67, achievement 127.4%), and the annual dividend was ¥34 (interim ¥15, year-end ¥19), markedly above the ¥17 forecast. This fiscal year featured high quality of earnings, where improved profitability compensated for top-line shortfall.
Annual dividend was ¥34 (interim ¥15, year-end ¥19), with a Payout Ratio of 22.9% (=¥34 / EPS ¥148.66), a conservative level. Share buybacks amounted to ¥0.8B, small in scale, but the Total Return Ratio was approximately 24.3% (=(Dividends ¥9.4B + Share Buybacks ¥0.8B) / Net Income ¥42.0B), still low, indicating room for dividend increases and expanded buybacks. With Free Cash Flow ¥60.1B versus total shareholder returns ¥10.2B, FCF coverage is 5.89x, indicating high sustainability. Given cash & deposits ¥276.9B and interest-bearing debt ¥17.4B net cash position, there is scope to maintain a stable progressive dividend policy and enhance shareholder returns through flexible buybacks.
Concentration risk in the Domestic Mos Burger Business: Domestic Mos accounts for 81.7% of Revenue and about 92% of Operating Income, so demand shifts for the single brand, intensified competition, or food material price volatility can materially affect consolidated results. If same-store sales weaken or competitors aggressively expand, company-wide growth and margins could be significantly impaired.
Weakness in Overseas and New Restaurant Businesses: Overseas revenue declined -6.8% and Operating Income -32.5%, with a low Operating Margin of 2.1%. New Restaurant Business recorded an Operating Loss of ¥2.1B (Operating Margin -9.7%), with widening deficits. Delays in recovery of these segments would leave the company lacking growth drivers and a skewed portfolio. Overseas competitive pressures, exchange rate volatility, and slow brand development could constrain medium- to long-term growth.
Increase in Intangibles and Impairment Risk: Intangible assets rose sharply to ¥30.7B (YoY +38.9%) as system and brand investments accelerate. If investment returns are delayed, technology becomes obsolete, or brand value is impaired, impairment losses risk increases. The company recorded impairment losses of ¥5.0B this fiscal year, so monitoring intangibles and validating investment effectiveness is important.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 6.4% | 3.4% (1.4%–5.0%) | +3.0pt |
| Net Margin | 4.1% | 2.3% (1.0%–4.6%) | +1.8pt |
Both Operating Margin and Net Margin materially exceed industry medians, confirming SG&A efficiency and Domestic Mos’s high profitability as competitive advantages.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 6.8% | 5.9% (0.4%–10.7%) | +1.0pt |
Revenue growth rate is 1.0pt above the industry median, driven by resilience at domestic existing stores.
※Source: Company aggregation
Price optimization and SG&A efficiency in Domestic Mos improved Operating Margin to 6.4% (previous year 5.4%, +1.0pt), delivering profitability well above the industry median of 3.4%. With Operating CF / Net Income of 2.20x and Debt/EBITDA 0.16x, the net cash profile provides very high financial resilience and buffers against economic and commodity price fluctuations. Free Cash Flow of ¥60.1B covers dividends and buybacks totaling ¥10.2B by 5.89x, supporting both stable shareholder returns and growth investments.
Overseas revenue -6.8% and Operating Income -32.5% (Operating Margin 2.1%) along with New Restaurant Business’s Operating Loss of ¥2.1B (Operating Margin -9.7%) cap company-wide margins. Recovery in these segments is the upside to EPS growth. Intangibles rose YoY +38.9% as system and brand investments progressed; monitoring investment payback and impairment risk is critical.
This report was auto-generated by AI analyzing XBRL financial statement disclosures. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company based on public financial statements. Investment decisions are your responsibility; consult a professional advisor as needed.