Hiday Hidaka Corporation (7611): FY2025 Results Summary — Net Sales and Operating Income Both Rise, Operating Income Up 19.4%

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Hiday Hidaka does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. This site classifies the most recent completed fiscal year as FY2025, while the company’s materials label the period as the fiscal year ended February 2026 (FY2/2026); the company reports on a non-consolidated basis. For FY2/2026, Hiday Hidaka reported net sales of 62,252 million yen (+11.9% year on year), operating income of 6,584 million yen (+19.4%), ordinary income of 6,587 million yen (+16.5%), and net income of 4,731 million yen (+15.6%). Existing-store sales rose to 108.0% of the prior-year level, customer traffic to 103.8%, and average spend per customer to 104.0%, while the number of directly operated stores expanded to 472 (up 17 stores year on year). The cost of sales ratio rose to 30.8% (+1.1pt) on higher food ingredient and labor costs, but sales growth absorbed the higher costs and profit increased. ROE was 18.7% (+2.6pt year on year).

Results (FY2/2026 Actual)

Net sales were 62,252 million yen (+11.9% year on year), operating income was 6,584 million yen (+19.4%), ordinary income was 6,587 million yen (+16.5%), and net income attributable to parent company shareholders was 4,731 million yen (+15.6%). The cost of sales ratio rose to 30.8% (+1.1pt year on year) on higher ingredient prices, and labor costs increased to 20,734 million yen (+8.3%) due to an increase in the number of full-time and “friend” (part-time) employees and base pay increases.

Item	FY2/2026 (Current Period)	FY2/2025 (Prior Period)	Change
Net sales	62,252 million yen	55,629 million yen	Up 11.9%
Operating income	6,584 million yen	5,514 million yen	Up 19.4%
Ordinary income	6,587 million yen	5,652 million yen	Up 16.5%
Net income	4,731 million yen	4,092 million yen	Up 15.6%

Results by Business Format

Net sales by business format (full-year cumulative) grew at the mainstay “Hidakaya” format, to 59,148,652 thousand yen (from 52,872,574 thousand yen in the prior period). The “Yakitori Hidaka” format came to 2,445,892 thousand yen (from 2,180,876 thousand yen), and other formats came to 658,314 thousand yen (from 576,260 thousand yen), for total net sales of 62,252,860 thousand yen (+11.9% year on year).

Business Format	FY2/2026 (thousand yen)	FY2/2025 (thousand yen)
Hidakaya	59,148,652	52,872,574
Yakitori Hidaka	2,445,892	2,180,876
Other formats	658,314	576,260
Total	62,252,860	55,629,711

Full-Year Forecast (FY2/2027)

For FY2/2027, the company expects existing-store sales (stores open by the end of February 2026) to rise 6% year on year, with customer traffic up 4.7% and average spend per customer up 1.3%. The company expects the cost of sales ratio to remain roughly in line with the previous year, anticipating continued high pork and egg prices alongside a gradual decline in rice prices.

Item	FY2/2027 (Forecast)	FY2/2026 (Actual)
Net sales	67,000 million yen	62,252 million yen
Operating income	6,800 million yen	6,584 million yen
Ordinary income	6,800 million yen	6,587 million yen
Net income	4,500 million yen	4,731 million yen
Number of directly operated stores	487	472
Net income per share	124.99 yen	130.74 yen
ROE	18.0%	18.7%

Shareholder Returns

To achieve stable and sustainable dividends, the company has changed the shareholder return metric it targets from a “40% dividend payout ratio target” to a “net asset dividend rate (DOE) target of 4% or higher,” under which it plans to actively pursue dividend increases, stock splits and other profit-return measures in line with business performance. The company will also consider flexible share buybacks, taking into account its investment capacity and share price level. It has raised its dividend for three consecutive periods since FY2/2024, and repurchased 2.0 billion yen of treasury shares in FY2/2025 and 4.0 billion yen in FY2/2026.

Medium-Term Plan / Topics

Under the medium-term management plan “Hiday Challenge Rolling Plan 2026,” based on FY2/2026 results (net sales of 62.2 billion yen, operating margin of 10.6%, ROE of 18.7%, and 478 stores), the company plans for FY2/2027 net sales of 67.0 billion yen, an operating margin of 10.2%, ROE of 18% or higher, and 497 stores. With FY2/2029 as an interim target year and FY2/2031 as the final target year, the company’s long-term vision for eight years ahead calls for net sales of 100.0 billion yen, an operating margin of 10% or higher, ROE of 18% or higher, and 700 stores (including franchise stores).

Item	FY2/2026 (Actual)	FY2/2027 (Forecast)	FY2/2029 (Target)	FY2/2031 (Target)
Net sales	62.2 billion yen	67.0 billion yen	74.0 billion yen	83.0 billion yen
Operating margin	10.6%	10.2%	10% or higher	10% or higher
ROE	18.7%	18% or higher	18% or higher	18% or higher
Number of stores (including franchise)	478	497	543	597

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.