Zensho Holdings, a Japanese restaurant-chain operator, experienced a surge in its shares following the release of its first-quarter financial results. The company's net profit for the quarter ended June rose by an impressive 51%, attributed in part to the recovery of demand for family dining.
As of Monday morning, Zensho Holdings shares were up by 10%, reaching 7,286 yen.
During the first quarter, the company's net profit climbed to Y6.675 billion ($46.1 million), significantly surpassing the Y4.43 billion achieved in the same period last year. Additionally, first-quarter revenue increased by 20% to reach Y214.37 billion.
The growth in demand for family and group dining experiences has been fueled by the easing of pandemic-related restrictions and the normalization of economic activities. This has particularly benefited Zensho Holdings' Sukiya segment, which operates beef-rice-bowl outlets and other fast-food and restaurant chains. The segment's operating profit soared from Y148 million to Y3.71 billion, with a 25% increase in revenue. Similarly, the fast-food and restaurant segments also recorded higher revenue, resulting in an overall rise in operating profit.
Despite these positive developments, Zensho Holdings has maintained its earnings forecasts for the fiscal year ending March 2024. The company predicts a 15% revenue increase, amounting to Y898.47 billion, and expects its net profit to rise by an impressive 73% to reach Y23.00 billion.
These results further solidify Zensho Holdings' position as a leading player in the restaurant industry, with the company continuing to leverage its strengths and drive growth in the market.