First Quarter Financial Summary for Fiscal Year Ending March 2027 (Japanese GAAP) (Consolidated)

Overview of Results

In the first quarter of this term, net sales decreased year over year while the sales environment at directly-managed stores faced rising costs and softened demand, resulting in lower gross profit. The number of directly-managed stores increased by one, but franchise sales and existing-store sales were below the prior year. Consequently, operating loss, ordinary loss, and net loss were recorded. As a new sales initiative, the company has started food delivery and organized fairs to boost customer attraction. There is no material change to the full-year forecast, with net sales of 5,250 million yen and operating income of 180 million yen, and net income of 120 million yen expected.

Outlook and Key Drivers

Given the seasonality of the business model, quarterly performance tends to be lumpy. While macro factors such as inbound demand from Mainland China and movements in resource prices continue to influence the environment, the company faces challenges in managing raw material costs, personnel costs, and selling, general, and administrative expenses. The second-quarter cumulative and full-year earnings guidance remain unchanged for now, but there is a high degree of risk of fluctuation depending on external conditions.