Saizeriya cuts profit forecast for fiscal year ending August 2026

Saizeriya <7581> on Wednesday revised downward its consolidated earnings forecast for the fiscal year ending August 2026, lowering its operating profit target to \18.2 billion (up 17.4% year-on-year) from \19.0 billion. The net profit projection was also cut to \11.8 billion (up 5.7% y/y) from \12.4 billion.

While the company raised its net sales forecast to \297.0 billion (up 15.7% y/y) from \276.3 billion?citing robust customer traffic and higher average spending driven by menu updates and digital transformation (DX) initiatives?rising food costs have eroded margins. In particular, surging rice prices caused the first-half gross profit margin to fall below expectations, a trend Saizeriya expects to persist through the second half of the fiscal year.

In its interim results for the six months ended February, announced simultaneously, the restaurant operator reported net sales of \142.85 billion (up 17.5% y/y), operating profit of \8.65 billion (up 39.9%), and net profit of \5.63 billion (up 20.7%).

Strategically, Saizeriya announced the establishment of wholly owned subsidiaries in Chengdu, China, and Indonesia to accelerate its Asian store expansion. The company expects the immediate impact on consolidated earnings to be minimal.

Source: MINKABU PRESS