Toridoll FY2026 Operating Profit Jumps 22% as Global Marugame Udon Chain Drives Revenue to ¥278.7 Billion

Toridoll Holdings Corporation (TSE: 3397), the operator of the Marugame Seimen and Marugame Udon restaurant chains, reported consolidated IFRS results for FY2026 (April 1, 2025 – March 31, 2026) that showed steady top-line growth and a significant improvement in operating and pre-tax profitability. Revenue reached ¥278,715 million (¥278.7 billion), a +3.9% increase from ¥268,228 million in FY2025. Business profit — the company's measure of core recurring earnings before impairments and non-operating items — rose 17.9% to ¥21,460 million, while IFRS operating profit (which incorporates impairment losses and other operating income/costs) rose 21.9% to ¥10,578 million.

Profit before tax advanced 51.7% to ¥8,089 million, recovering from the prior year's sharp drop caused by heavy impairment charges. Net profit attributable to owners of the parent grew 23.3% to ¥2,311 million, with basic EPS rising to ¥21.65 from ¥16.95 the prior year. Adjusted EBITDA — excluding impairment losses and non-recurring charges — grew 5.7% to ¥52,461 million, while reported EBITDA was broadly flat at ¥40,878 million (-1.6%). The company's equity attributable to owners of the parent stood at ¥87,243 million at March 31, 2026, with total assets of ¥323,196 million.

Marugame Seimen anchors global foodservice ambitions

Toridoll operates the largest udon restaurant chain in the world under the Marugame Seimen / Marugame Udon brand, with thousands of outlets spanning Japan, Southeast Asia, North America, and Europe. The domestic Marugame Seimen network remains the earnings core, delivering predictable same-store cash flows supported by Japan's resilient casual dining market. Overseas, the company has pursued aggressive unit-count growth, particularly in the United Kingdom, the United States, and Southeast Asian markets. The FY2026 revenue growth of 3.9% moderated from the 15.6% pace of FY2025, reflecting a more mature domestic base, though management highlighted continued international openings as the primary driver of future earnings expansion. The removal of MC GROUP PTE. LTD. from the consolidation scope during the year had a modest negative effect on reported revenue.

Impairments still weigh; operating leverage rebuilds

A key theme in FY2026 was the partial recovery of operating profitability after FY2025's outsized impairment losses dragged operating profit down 23.8%. The business profit margin improved meaningfully, with business profit of ¥21,460 million equating to a 7.7% business margin on revenue of ¥278.7 billion. Operating profit of ¥10,578 million implies an operating margin of 3.8%. The gap between business profit and operating profit — ¥10,882 million — reflects impairment losses and net other operating charges not yet fully dissipated, an area management has flagged for ongoing optimisation. Cash flow from operations was strong at ¥49,238 million (versus ¥37,670 million in FY2025), while investing outflows of ¥12,792 million and financing outflows of ¥13,219 million left closing cash at ¥82,271 million.

Dividend raised to ¥12.00; FY2027 net profit to triple

Toridoll raised the annual dividend to ¥12.00 per share in FY2026 (up from ¥11.00 in FY2025 and ¥10.00 in FY2024), with the year-end portion at ¥12.00. For FY2027, the company guides an unchanged full-year dividend of ¥12.00 per share. The FY2027 consolidated guidance projects revenue of ¥287,000 million (+3.0%), business profit of ¥22,000 million (+2.5%), operating profit of ¥17,000 million (+60.7%), profit before tax of ¥14,000 million (+73.1%), net profit of ¥7,100 million (+158.4%), and profit attributable to owners of the parent of ¥7,000 million (+202.9%), equivalent to EPS of ¥75.10. The sharp jump in bottom-line guidance principally reflects the company's expectation that impairment losses will shrink materially, allowing business-level profitability to flow through to reported net profit at a much higher rate.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.