Zensho (7550) Q2 2025 earnings summary

Executive summary

• Net sales for 1H FY2024 reached ¥557.7 bn, up 23.2% year-over-year, with operating profit up 61.4% to ¥41.1 bn and profit attributable to owners rising 57.4% to ¥24.8 bn, driven by strong growth across major segments and recovery in foot traffic.

• Store count reached 15,380, with 543 new outlets opened (505 overseas, 38 in Japan) and 272 closures, reflecting aggressive expansion.

• Growth was fueled by normalization of economic activity, increased restaurant demand, and improved personal consumption.

• Same-store sales grew globally: Sukiya up 107.9%, Hamasushi up 116.8%, Fast Food up 108.2%, and Restaurants up 111.5%.

Financial highlights

• Cost of sales increased 21.0% year-over-year, but as a percentage of sales, declined by 0.8 points to 44.8%.

• SG&A expenses rose 20.9% year-over-year, but as a percentage of sales, fell by 0.9 points to 47.9%.

• Gross profit increased to ¥308.1 bn from ¥246.3 bn year-over-year, and operating profit margin improved.

• Ordinary profit climbed 59.6% year-over-year to ¥39.1 bn.

• Basic earnings per share rose to ¥153.57 from ¥104.18 year-over-year.

Segment performance

• Global Fast Food: Net sales ¥158.2 bn (+59.1%), operating profit ¥14.5 bn (+185.6%).

• Global Hamasushi: Net sales ¥117.1 bn (+24.8%), operating profit ¥9.7 bn (+97.9%).

• Global Sukiya: Net sales ¥145.9 bn (+10.8%), operating profit ¥13.4 bn (+32.5%).

• Restaurants: Net sales ¥76.5 bn (+11.0%), operating profit ¥5.5 bn (+68.2%).

• Retail and Others segments showed minimal or negative profit contribution.