Choushimaru Q1 Operating Profit Jumps 47% to ¥787 Million as Sushi Chain Sales Rise 10.8%

Choushimaru Co., Ltd. (TSE: 3075), which runs the Sushi Choushimaru kaiten-zushi chain across Japan's Kanto region, reported non-consolidated first-quarter results for FY2/2027 (March 1 – May 31, 2026) under Japanese GAAP. Revenue rose 10.8% to ¥6,338 million, operating profit rose 47.1% to ¥787 million, ordinary profit rose 46.9% to ¥796 million, and quarterly net profit rose 95.6% to ¥507 million. Basic EPS came in at ¥40.52, up from ¥20.78 a year earlier.

Margins widen on menu strength

Gross profit climbed 11.8% to ¥3,899 million, lifting the gross margin to 61.5% from 60.9%, while selling, general and administrative expenses grew a more restrained 5.4% to ¥3,111 million. That gap is what produced the outsized operating-profit gain: the operating margin expanded to 12.4% from 9.4%. Management credits its core "sushi chefs on the floor" format — whole-tuna purchasing that enables rare-cut menu items, direct-from-port fish sourcing, Chiba-prefecture ingredients and private-brand development, plus regional-sourcing events and a founding-anniversary promotion offering popular cuts at value prices.

The near-doubling of net profit flatters the underlying trend somewhat: the year-earlier quarter carried a ¥142 million impairment loss as an extraordinary item, which cut pre-tax profit to ¥399 million. This quarter recorded no meaningful extraordinary items, so pre-tax profit of ¥796 million converted to ¥507 million after ¥289 million of tax.

Store count at 93; second U.S. outlet opens

Choushimaru opened Sushi Choushimaru Park City Nakano in May 2026 at the new mixed-use complex by the north exit of Nakano Station in Tokyo, and closed Sushi Gen — its reservation-only premium Edomae sushi concept — in the same month, leaving 93 stores at quarter-end. Overseas, SUSHI-TEN USA Inc., the U.S. joint venture with Royal Holdings and Sojitz, opened its second location in March 2026 and is building out locally hired operations ahead of a wider rollout. The company reports as a single sushi-business segment.

Balance sheet and dividend

Total assets rose 6.2% from the February year-end to ¥12,918 million, driven by a ¥359 million increase in cash and deposits and a ¥286 million rise in accounts receivable. Liabilities rose 12.4% to ¥3,807 million on a ¥390 million net increase in short-term borrowings and a ¥103 million rise in accounts payable. Net assets rose 3.8% to ¥9,110 million on ¥332 million of retained-earnings growth, but the equity ratio slipped to 70.3% from 71.9% as assets outgrew equity. Book value per share was ¥725.07. Depreciation for the quarter was ¥145 million, up from ¥133 million. No quarterly cash flow statement was prepared.

The annual dividend forecast for FY2/2027 is ¥15.00 per share (all paid at year-end), up from ¥14.00 for FY2/2026, and unchanged from the prior announcement.

Guidance unchanged, implying a slowdown

Choushimaru left the guidance it issued on April 13, 2026 intact. For the full year it targets revenue of ¥24,122 million (+1.9%) but operating profit of ¥1,203 million (−23.6%), ordinary profit of ¥1,226 million (−23.2%) and net profit of ¥785 million (−22.0%), with EPS of ¥62.83. First-half guidance is revenue of ¥12,053 million (+3.8%) and net profit of ¥521 million (−4.9%). With ¥507 million of net profit already booked in Q1, the unchanged forecast implies management expects only ¥14 million in the second quarter and ¥264 million across the entire second half — a conservative stance against elevated raw-material and energy costs, labour shortages, rising personnel expenses and consumers trading down amid falling real wages.

Note that the company moved its fiscal year-end from May 15 to the end of February beginning with FY2/2025, so year-earlier comparatives in prior periods were not always like-for-like; the Q1 FY2/2027 versus Q1 FY2/2026 comparison shown here covers matching March–May periods. Reporting units also changed this quarter from thousands to millions of yen, with prior-period figures restated on the same basis.

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. Balance-sheet items marked ^* compare May 31, 2026 with the February 28, 2026 fiscal year-end rather than the year-earlier quarter.