Hiday Hidaka raises dividends, expands franchise on strong performance

Hiday Hidaka Corp. reported a significant 31.9% increase in interim net profit to JPY 2,490 million for the six months ended August 31, 2025, on sales of JPY 30,754 million, up 14.4% year-over-year. This strong performance, driven by continued store openings and sustained customer traffic, led the company to raise its interim dividend by JPY 1.00 to JPY 23.00 per share, with an expected total annual dividend of JPY 46.00, also reflecting a JPY 1.00 increase for the year-end.

The company's expansion strategy includes opening 11 new stores in the first half of the fiscal year, bringing the total to 465 direct-operated locations. Notably, Hiday Hidaka has signed a franchise agreement with Ocean System Co., Ltd. for its "Netsuretsu Chuka Shokudo Hidakaya" restaurants, marking its first external franchise partner and planned entry into Niigata Prefecture by April 2026. This move is part of the "Hiday Challenge" medium-term plan to expand domestic market share.

Despite a slight decrease in total assets to JPY 32,532 million, the company maintained a strong equity-to-asset ratio of 71.9%. The positive sales momentum extended into September 2025, with all-store sales up 10.8% year-over-year. The full-year forecast remains unchanged, anticipating JPY 60,000 million in sales and JPY 4,100 million in profit, with the franchise agreement's short-term impact on financial results expected to be negligible.