Zensho (7550) Q4 2025 earnings summary

Executive summary

• FY2024 net sales rose 17.7% year-over-year to ¥1,136.6 billion, with operating profit up 39.9% to ¥75.1 billion and net profit up 28.0% to ¥39.2 billion.

• Growth driven by strong performance in Global Fast Food, Global Hamasushi, and Global Sukiya segments, as well as recovery in personal consumption and increased restaurant demand.

• Store network expanded to 15,419 locations, with significant overseas growth and continued investment in takeout sushi.

• Business environment impacted by higher raw material costs and food safety incidents at Sukiya, prompting operational changes.

Financial highlights

• Operating margin improved to 6.6% from 5.6% year-over-year; ordinary profit margin increased to 6.3%.

• Cash flows from operating activities decreased 8.1% to ¥78.9 billion; free cash flow was ¥12.5 billion.

• Capital investment reached ¥61.5 billion, up from ¥40.1 billion in FY2023.

• Total assets increased to ¥813.1 billion, net assets to ¥240.4 billion.

• Dividend per share for the year was ¥70.

Outlook and guidance

• FY2025 sales forecast at ¥1,223.5 billion (+7.6%), operating profit at ¥82.0 billion (+9.1%), and net profit at ¥42.5 billion (+8.2%).

• Operating cash flow expected to rise to ¥97.1 billion (+23.1%).

• Medium-term plan targets sales of up to ¥1,481.0 billion and operating profit of ¥116.5 billion by FY2027.

• Store count projected to reach 18,729 by FY2027, with accelerated global expansion.

• Ongoing cost pressures expected; focus on food safety, operational improvements, and mass merchandising system.