GLOBAL-DINING, INC.

Business Details

A restaurant business comprising Global Dining, Inc. and its U.S. subsidiary, Global Dining, Inc. of California. Domestically, the company operates multiple formats including Italian, Japanese, and Asian cuisine centered in Tokyo, while in the U.S. it operates several stores near Los Angeles. The company pursues "dining out as entertainment," providing extraordinary experiences and high-value-added services. The total number of stores at the end of the first quarter of FY2026 (ending December 2026) was 46 (down from 48 at the end of the prior fiscal year, following the closure of 2 stores in Aichi Prefecture).

Recent Overview

Net sales up 14.5% and a return to operating profit, alongside the closure of 2 Aichi stores and renewal of the U.S. management structure

In the first quarter of FY2026 (ending December 2026) (January to March 2026), net sales were ¥3,434 million (up 14.5% year on year), and operating profit improved substantially to ¥230 million (compared with an operating loss of ¥58 million in the same period a year earlier). Existing-store sales rose 14.6% year on year. La Boheme (sales of ¥871 million, up 16.2%) and Gonpachi (sales of ¥847 million, up 7.7%) drove performance. Meanwhile, two stores within "LaLaport Aichi Togo" in Aichi Prefecture (La Boheme Pasta Fresca and Monsoon Cafe) with no prospects for earnings improvement were closed in January, reducing the total number of stores to 46. The U.S. subsidiary renewed its management structure so that the Company's CEO and CFO also serve in those roles for the U.S. operations, aiming for full-year profitability. The full-year earnings forecast remains unchanged (net sales of ¥14,032 million, operating profit of ¥948 million).

Key Products

Growth Drivers

• Expansion of existing-store sales at La Boheme (Italian format) driven by talent development and organizational revitalization (up 16.2% year on year in the first quarter)
• Steady performance of Gonpachi (Japanese cuisine format) in both inbound demand and residential locations (up 7.7% year on year in the first quarter)
• High overall existing-store sales growth rate of 14.6% year on year
• Long-term profitability at Nasu Paradise Village through increased awareness and repeat customer acquisition ("Other" segment sales up 40.9% year on year)
• Continued steady growth in inbound demand
• Efforts toward full-year profitability at the U.S. subsidiary through management structure renewal (dual CEO/CFO roles) and application of domestic know-how
• Improved earnings structure through the closure of unprofitable stores (2 stores in Aichi Prefecture)

Risks

• Risk related to launch costs and the time required to achieve profitability at Nasu Paradise Village (Lodging-equipped Complex Facility)
• Risk of continued losses at the U.S. subsidiary and uncertainty regarding achievement of full-year profitability following the management structure renewal
• Cost pressure from persistently high raw material and energy prices
• Worsening labor shortages and continued increases in labor costs
• Impact on customer traffic and average spending per customer from growing consumer thrift-consciousness
• Impact on the U.S. business and import costs from fluctuations in U.S. trade policy and exchange rates
• Impact on the U.S. business from geopolitical risks such as natural disasters near Los Angeles
• Financial burden from increased fixed liabilities (long-term borrowings increased by ¥308 million from the end of the prior fiscal year to ¥2,079 million)
• Risk of changes in estimates related to asset retirement obligations (fixed liabilities of ¥1,106 million)