Hiday Hidaka, a renowned Japanese ramen-restaurant-chain operator, experienced a significant boost in its share value on Tuesday morning. The company revised its fiscal-year earnings guidance, pointing to a rise in its customer base despite implementing higher prices.
As of now, Hiday Hidaka's shares have risen by 5.0% to 2,705 yen, with a previous surge of 12% earlier in the trading session.
Yesterday, after the market closed, Hiday Hidaka announced that it expects its net profit to soar by 91% to Y2.90 billion ($19.8 million) for the year ending February 2024. This projection stands in contrast to the previously estimated Y1.85 billion.
The company anticipates that its revenue will witness a substantial increase of 23% to Y47.00 billion during this fiscal year, surpassing the previously estimated Y44.00 billion. These positive figures primarily arise from the steady growth in private consumption following the gradual relaxation of pandemic-related restrictions.
Notably, even after implementing price hikes on their food items, Hiday Hidaka witnessed a notable surge in their customer count.
The company attributes this success to various efforts aimed at enhancing operational efficiency, such as the increased implementation of touch panels for order-taking. These endeavors have effectively counterbalanced the higher costs associated with cooking ingredients, labor, and energy.
Inquiries: Kosaku Narioka