By Kosaku Narioka
Saizeriya shares rose sharply after the Japanese restaurant-chain operator projected strong earnings growth this fiscal year, backed by new restaurant openings abroad.
The company’s shares were recently 14% higher at 5,530 yen on Thursday morning, at the upper end of the day’s trading range.
Saizeriya said Wednesday after market close that it expects net profit to increase 59% to Y8.20 billion ($55.0 million) for the fiscal year that started in September.
The company projected that it would add 50 restaurants overseas on a net basis and reduce its count in Japan by eight this fiscal year.
It forecasts that revenue will climb 15% to Y211.00 billion.
For the year ended August, revenue grew 27% and operating profit rose sharply thanks to a recovery in the number of customers– especially in China–from a slump caused by pandemic-related restrictions. It added restaurants in cities like Shanghai and Guangzhou.
Saizeriya said that the operating environment would remain difficult this fiscal year due to higher costs for food, energy and labor.
Write to Kosaku Narioka at [email protected]
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