3065.T

Macroeconomic and Industry Context

• The Japanese economy maintained a moderate recovery trend on the back of improving employment and income conditions, but the outlook remains uncertain due to U.S. trade policy shifts, unstable international conditions, and prolonged high inflation.
• The food service industry saw a continued recovery trend alongside increased foot traffic, but remains a challenging operating environment due to persistently high raw material (especially rice) and energy costs, rising labor costs from labor shortages, and slow recovery in late-night store demand.

Operational Initiatives

• Implemented working hour reductions for employees and capital expenditure restraint to compress asset bases, and revised menus in response to rising raw material prices, especially rice.
• For the

• Full-year 2027 February term consolidated guidance expects net sales to remain flat year-over-year at 9.619 billion yen, with 35.7% YoY growth in operating income to 118 million yen, 22.4% YoY growth in ordinary income to 157 million yen, and 104.0% YoY growth in net income to 73 million yen (translating to 23.63 yen diluted EPS).
• First half 2027 February term cumulative guidance projects a 2.0% YoY decrease in net sales to 4.842 billion yen, 1.1% YoY decrease in operating income to 147 million yen, 1.7% YoY decrease in ordinary income to 166 million yen, and 0.2% YoY decrease in net income to 124 million yen (translating to 40.34 yen diluted EPS).
• Dividend guidance maintains an annual dividend per share of 5.00 yen for both the 2026 February term and 2027 February term, with a projected payout ratio of 43.2% for 2026 and 21.2% for 2027.

The provided transcript does not break out financial performance by individual product segments. Only consolidated full-year financial results for the 2026 February term are reported: consolidated net sales totaled 9.614 billion yen (1.7% year-over-year decrease), operating income was 87 million yen (74.8% YoY decrease), ordinary income was 128 million yen (69.0% YoY decrease), and net income attributable to shareholders was 35 million yen (91.1% YoY decrease).

• Persistently high raw material prices (notably rice) and energy costs continue to pressure operating margins.
• Ongoing labor shortages drive rising labor costs, creating additional cost headwinds.
• Slow recovery in late-night customer demand at store locations weighs on same-store sales performance.
• The overall business outlook remains highly uncertain due to unstable global geopolitical conditions and trade policy shifts.
• Sustained prolonged high inflation could further dampen consumer demand and pressure profitability.

No question and answer section is included in the provided transcript.