Eternal Hospitality Group exceeds revenue forecast, eyes global expansion

Eternal Hospitality Group reported strong financial performance for the fiscal year ending July 2025, with consolidated revenue reaching JPY 46,356 million. This surpassed both the previous year's JPY 41,914 million and the revised forecast of JPY 45,335 million, representing a 10.6% year-over-year increase attributed to new domestic store openings, existing store revenue growth, and overseas expansion.

Operating profit for the period was JPY 3,121 million, a 3.9% decrease from the prior year's JPY 3,248 million, primarily due to rising cost of goods sold and initial losses from overseas subsidiaries. Despite this, operating profit exceeded the revised forecast of JPY 3,036 million by 2.8%. Net income attributable to owners of the parent decreased by 19.1% to JPY 1,720 million.

Looking ahead to July 2026, the company projects consolidated revenue of JPY 52,355 million and an operating profit of JPY 3,152 million, anticipating continued growth from existing stores and accelerated international expansion. The company plans to open 30 directly managed and 23 TCC stores domestically, alongside significant international expansion in South Korea, Shanghai, Vietnam, Taiwan, and Hong Kong. Shareholder returns include a progressive dividend policy with a target payout ratio of over 20%, and shareholder benefits offering electronic tickets.