Eternal Hospitality Group Co.,Ltd.

Eternal Hospitality Group, which operates the yakitori chain Torikizoku, announced on September 11 its consolidated financial results for the fiscal year ending July 2026, reporting revenue of 51.254 billion yen, up 10.6 percent year on year, while operating profit fell 10.4 percent to 2.797 billion yen and net profit dropped 23.4 percent to 1.318 billion yen, missing both the full-year forecasts of 52.801 billion yen in revenue and 3.43 billion yen in operating profit that it had published in March. Same-store sales at domestic Torikizoku locations were solid at 106.7 percent of the original plan, exceeding the planned 103.8 percent, but new store openings in Japan and overseas fell short of plan, and the company was hit by higher selling, general and administrative expenses including store-opening costs and labor costs concentrated in the fourth quarter, as well as widening upfront losses at overseas directly operated stores. It also recorded an impairment loss of 391 million yen on four directly operated Torikizoku stores in Shanghai, China, and other assets as an extraordinary loss. The company nearly halved the operating profit target for the fiscal year ending July 2027, the final year of its mid-term management plan, to 3.078 billion yen from the original 6 billion yen, and cut its overseas revenue target to about one-third, to 2.075 billion yen from 6 billion yen. For the fiscal year ending July 2027, it plans revenue of 57.231 billion yen and operating profit of 3.078 billion yen, achieving growth in both revenue and profit, but the across-the-board price revision from October 1 announced on September 10 was not finalized as of the start of the period and is therefore not included in the forecast.