By Kosaku Narioka
Zensho Holdings shares rose sharply Monday morning after the Japanese restaurant-chain operator posted a 51% rise in its first-quarter net profit, thanks partly to a recovery in demand for family dining.
The shares were recently 10% higher at 7,286 yen.
Zensho said after Thursday’s market close that net profit climbed to Y6.675 billion ($46.1 million) for the quarter ended June from Y4.43 billion in the year-earlier period. First-quarter revenue increased 20% to Y214.37 billion.
Japanese markets were closed Friday for a national holiday.
The operator of Sukiya beef-rice-bowl outlets and other fast-food and restaurant chains said that demand has increased for families and people in groups dining out, as pandemic-related restrictions were lifted and economic activities were normalized.
Zensho said operating profit from its Sukiya segment increased sharply to Y3.71 billion from Y148 million as revenue grew 25%. Operating profit from its fast-food and restaurant segments also rose on higher revenue.
The company kept its earnings forecasts for the fiscal year ending March 2024. It said it expects revenue to increase 15% to Y898.47 billion and net profit to rise 73% to Y23.00 billion.
Write to Kosaku Narioka at [email protected]
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