The company's strengths lie in superior cooking skills of its chefs, overwhelming brand recognition as a Chinese restaurant for the masses, and robust store profit management system. At its stores, chefs cook fresh dumplings on teppan, offering a variety of set meal menus by hand in addition to standard dishes, differentiating it from competitors using frozen dumplings and automated systems.
Cyborg Score Rationale
The trailing net profit margin sits at 6.9%, with TTM revenue of ¥116.9b and net income of ¥8.1b. Forecasts point to around 4.5% annual revenue growth and 4.2% annual earnings growth. The company maintains steady operations but faces valuation concerns relative to intrinsic value.
Top Insights
Q3 2026 revenue of ¥28.8b with basic EPS of ¥29.57 and TTM revenue of ¥116.9b
Recently reduced second-quarter dividend to ¥28.00 per share from ¥75.00 with full-year guidance of ¥119.73 billion net sales
Trading on a P/E of 20.7x, below both peer average of 61.8x and JP Hospitality industry average of 24.2x
Monthly results for October 2025 showed all company-operated stores achieved year-on-year sales growth
Named Competitors
Ramen/Gyoza Chains — Japanese casual dining chains competing in similar price-point segments
International Casual Dining — Foreign restaurant concepts entering Japanese market
Quick Service Restaurants — Fast food and quick service alternatives in casual dining space