Kisoji Q1 Operating Loss Widens to ¥238 Million Even as It Closed Every Restaurant for Two Days

A seasonally weak quarter got weaker

Kisoji Co., Ltd. (TSE: 8160) published consolidated results for the three months to June 30, 2026 on August 12, 2026 under Japanese GAAP. Revenue fell 0.4% to ¥11,946 million, the operating loss widened to ¥238 million from ¥74 million, the ordinary loss to ¥222 million from ¥59 million and the net loss attributable to shareholders to ¥131 million from ¥51 million. The loss per share was ¥4.66 against ¥1.82. Comprehensive income was a ¥31 million loss, narrower than the ¥57 million a year earlier.

The first quarter is structurally the group's weakest. Demand for shabu-shabu, its main dish, rises in the winter, so third- and fourth-quarter revenue is normally higher than the first and second, and operating profit is skewed even further toward the second half. The company's own full-year forecast has the first half in a loss and the whole year comfortably profitable.

The core format holds; yakiniku slips

The Kisoji division — the shabu-shabu and Japanese-cuisine restaurants plus the Daishogun premium wagyu format — held revenue almost flat at ¥9,349 million (−0.2%). Two restaurants were refurbished and the format ended the quarter with 126 outlets. Marketing leaned on the format's strengths in celebration and memorial dining, family meals and corporate banquets, with a 60th-anniversary campaign built around a ¥3,900 shabu-shabu course and staff trained through an in-house meister scheme for occasions such as a baby's first meal. The yakiniku division, the Kuidon domestic-beef chain, fell 5.1% to ¥1,813 million. Among the smaller businesses, the izakaya brands grew 21.3% to ¥364 million.

Costs, not customers, did the damage

Japan's eating-out market held up over the Golden Week holidays and on a broader recovery in services spending, but consumers are increasingly selective and price-conscious, while ingredient, logistics and energy costs stayed high and wage competition kept lifting labour expense. Kisoji's response was procurement and supplier reviews, tighter inventory, less waste, changes to the product mix, staffing matched to footfall, better shift accuracy and energy-saving equipment. Depreciation eased slightly to ¥371 million from ¥390 million. None of it was enough to keep the quarter out of the red.

Balance sheet and guidance

Total assets fell ¥1,268 million to ¥47,230 million, of which current assets were ¥19,239 million — down ¥1,571 million and the main driver — with tangible fixed assets of ¥16,735 million, intangibles of ¥1,678 million and investments of ¥9,576 million. Liabilities fell ¥813 million to ¥16,097 million, mostly ¥443 million less income tax payable. Net assets fell ¥454 million to ¥31,132 million on the ¥131 million loss and the ¥422 million year-end dividend paid, so book value per share slipped to ¥1,105.59 from ¥1,121.70 — but the equity ratio still rose to 65.9% from 65.1% because assets shrank faster.

Guidance was left unchanged. For the first half Kisoji expects revenue of ¥24,500 million (+0.4%) and an ordinary loss of ¥75 million; for the full year, revenue of ¥55,000 million (+0.8%), operating profit of ¥3,200 million (+9.8%), ordinary profit of ¥3,250 million (+11.0%) and net profit of ¥2,100 million (+21.5%), for earnings per share of ¥74.58. The annual dividend forecast stays at ¥30.00, split ¥15.00 and ¥15.00.

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.