OHSHO FOOD SERVICE CORP.
9936・Prime Market・Retail Trade
Chinese cuisine business (single segment)
Operation of a company-operated and franchised Chinese restaurant chain centered on "Gyoza no Ohsho"
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥116,838 million | ¥111,033 million | ↑ |
| Operating profit | ¥10,410 million | ¥10,904 million | ↓ |
| Ordinary profit | ¥10,702 million | ¥11,312 million | ↓ |
| Profit attributable to owners of parent | ¥7,470 million | ¥8,071 million | ↓ |
| Operating margin | 8.9% | 9.8% | ↓ |
| Equity ratio | 76.5% | 76.8% | — |
| Earnings per share | ¥140.84 | ¥142.88 | ↓ |
| Net assets per share | ¥1,238.68 | ¥1,313.71 | ↓ |
| Cash flow from operating activities | ¥10,709 million | ¥11,215 million | ↓ |
| Cash and cash equivalents at end of period | ¥24,527 million | ¥38,120 million | ↓ |
| Total number of stores at period-end | 728 stores (551 company-operated, 177 franchised) | 728 stores (551 company-operated, 177 franchised) | — |
| Annual dividend per share | ¥56 | ¥75 (pre-split adjustment) | ↑ |
Business Details
The Group operates a Chinese cuisine restaurant chain business with 551 company-operated stores and 177 franchised (FC) stores (728 stores in total). Company-operated stores sell Chinese food and other menu items, while FC stores are supplied with Chinese food ingredients and other materials. The business is centered domestically but also extends overseas (Taiwan), with a new store opening planned in Taichung City, Taiwan in April 2026. The company generates revenue through both dine-in and takeout/delivery channels, pursuing a customer acquisition strategy that combines QSC (Quality, Service, Cleanliness) improvement with sales promotion initiatives.
Recent Overview
Net sales reached a record high for the 4th consecutive year, but operating profit declined 4.5% year on year due to rising costs
Net sales for FY2026 (ending March 2026) were ¥116,838 million (up 5.2% year on year), marking a record high for the 4th consecutive year and revenue growth for the 5th consecutive year. On the other hand, operating profit declined to ¥10,410 million (down 4.5% year on year) due to increases in labor costs (salaries, allowances and bonuses of ¥33,124 million, up 7.1% year on year) and raw material costs (cost of sales of ¥37,922 million, up 7.0% year on year). To strengthen shareholder returns, the company acquired 4,200 thousand treasury shares for ¥14,490 million and retired 5,000 thousand shares, resulting in a significant decline in cash and deposits from ¥38,120 million to ¥24,527 million. For FY2027 (ending March 2027), the company plans net sales of ¥121,357 million (up 3.9% year on year) and operating profit of ¥10,951 million (up 5.2% year on year), both representing new record highs.
Key Products
Growth Drivers
- Continued strong sales momentum, with 49 consecutive months of record-high sales on a same-month basis through February 2026
- Strengthened product offering and response to bifurcated consumer spending through the addition of 7 items to the "Gokuoh Series" and the development of new flat noodles
- Achievement of a record-high 1.32 million Gyoza Club members and strengthened customer acquisition through various promotional initiatives (draft beer campaign, Great Thanksgiving Festival, founding anniversary festival, etc.)
- Accelerated expansion into eastern Japan through aggressive store openings in the greater Tokyo metropolitan area (approximately 300 candidate sites already surveyed) and the establishment of a new cooking training dojo, training facility, and HR department office in Chuo-ku, Tokyo
- Strengthened human capital investment and improved recruiting competitiveness through an 8.2% wage increase in fiscal 2025 (average of ¥30,139 per employee), a ¥300,000 increase in starting salary for university graduates, the grant of restricted stock (to 2,469 employees, totaling ¥682 million), and a 20% increase in the employee stock ownership plan incentive
- Accelerated DX and AI investment through expansion of the takeout online reservation system to FC stores, establishment of an IT expert panel, and renewal of the host system
- Commencement of global expansion through the first store opening in Taichung City, Taiwan in April 2026 and the establishment of a new Overseas Business Office
Risks
- Persistent cost pressure and declining operating margin due to rising raw material prices and labor costs (a wage increase of an average ¥22,594 per employee, or 5.9%, is planned for FY2026 as well)
- Risk of suppressed dining-out demand due to cooling household sentiment and a growing tendency toward frugality amid prolonged price increases
- Heightened uncertainty over the economic outlook stemming from unclear U.S. trade policy and the manifestation of geopolitical risks
- Rising construction and equipment costs for stores as well as higher personnel recruitment costs associated with accelerated store openings in the greater Tokyo metropolitan area
- Reduced financial flexibility due to a significant decline in cash and deposits (from ¥38,120 million to ¥24,527 million) associated with share buybacks (¥14,490 million)
- Increase in corporate taxes due to tax reform (net profit forecast for FY2027 (ending March 2027) is ¥7,096 million, down 5.0% year on year)
Last updated: June 24, 2026