Monogatari Corporation FY2026 Full-Year Earnings Analysis: Surpassing ¥150 Billion in Revenue and Explosive Growth in Multi-Brand and Overseas Operations

Overview: Monogatari Corporation's Business Expansion Story Hits a Major Milestone

Monogatari Corporation (Ticker: 3097), a leading restaurant chain operator, reported record-high revenue and profit levels across all stages for the fiscal year ended June 2026, underscoring an acceleration in its growth trajectory. The company’s performance was bolstered by the unwavering profitability of its core Yakiniku division, led by the flagship "Yakiniku King" brand, alongside steady contributions from the Ramen division (anchored by "Marugen Ramen") and "Yuzuan," as well as the rapid expansion of its overseas business.

This report provides a comprehensive analysis of the company's performance highlights, category-specific trends, same-store KPIs, store network expansion, financial metrics, and growth strategies, based on 10 key topics extracted from the latest full-year earnings FACT BOOK.

---

1. Consolidated Earnings Highlights: Revenue Surpasses ¥150 Billion with Significant Profit Growth

For the full fiscal year ended June 2026, Monogatari Corporation demonstrated robust growth, significantly outperforming the previous year across all major management metrics.

• Net Sales : ¥151,689 million (+22.4% YoY)
• Gross Profit : ¥99,620 million (+23.5% YoY)
• Operating Profit : ¥12,145 million (+31.4% YoY)
• Ordinary Profit : ¥12,122 million (+34.1% YoY)
• Profit Attributable to Owners of Parent : ¥8,743 million (+42.0% YoY)

Revenue grew substantially from the previous year's ¥123.9 billion, finally surpassing the ¥150 billion milestone . Operating profit also saw a 31.4% increase year-on-year, indicating that revenue growth is effectively translating into bottom-line expansion.

[Slide Commentary: Why Slide 1 (Consolidated Statement of Income ①) is Important]

The consolidated statement of income (cumulative transition) above is the most critical foundational data for grasping the company's scale expansion and profit margin trends over the years. Of particular note is the stability of profit margins. Despite headwinds facing the entire restaurant industry, such as rising raw material and labor costs, the company maintained and improved its margins: Gross Profit Margin reached 65.6% (up from 65.0% in the previous year), and Operating Profit Margin reached 8.0% (up from 7.4%). These figures clearly demonstrate effective cost control and the realization of economies of scale, as the Selling, General and Administrative (SG&A) expense ratio was contained at 57.6% despite rapid revenue growth.

---

2. Revenue Trends by Category: Success of the Multi-Brand Strategy

The company's strength lies in its multi-brand deployment , which avoids reliance on a single business format. The revenue composition by category for the fiscal year ended June 2026 is as follows:

1. Yakiniku Division : ¥69,599 million (+12.8% YoY, 45.8% of total)
2. Ramen Division : ¥25,088 million (+15.2% YoY, 16.5% of total)
3. Yuzuan Division : ¥25,609 million (+23.8% YoY, 16.8% of total)
4. Specialty & New Formats : ¥9,351 million (+20.2% YoY, 6.1% of total)
5. FC Division : ¥7,809 million (+6.3% YoY, 5.1% of total)
6. Overseas Division : ¥14,230 million (+202.1% YoY, 9.3% of total)

Key Highlights of Core Businesses

• Yakiniku Division (Yakiniku King, etc.) : As the largest pillar accounting for 45.8% of total sales, it continues to show stable growth at 112.8% of the previous year.
• Ramen Division & Yuzuan : Both have grown to exceed ¥25 billion in scale, serving as solid profit foundations alongside the Yakiniku division.
• Explosive Growth in Overseas Business : Revenue in the overseas division surged nearly threefold from ¥4,709 million in the previous year to ¥14,230 million, rising to 9.3% of total company sales. It is firmly establishing itself as the company's new growth engine.

---

3. Analysis of Domestic Same-Store KPIs: Growth Driven by Both Customer Traffic and Spending

Domestic direct-operated same-store sales, the most critical KPI for measuring the sustainable growth of restaurant companies, also show extremely healthy figures.

[Slide Commentary: Why Slide 7 (Same-Store Sales YoY by Category) is Important]

This slide provides a detailed breakdown of "Same-Store Sales," "Customer Traffic," and "Average Spend per Customer" for each business division on a quarterly and full-year basis. It is essential data for confirming whether the earning power per store is being maintained, rather than just relying on store count increases.

Total same-store sales for the full year reached 105.0% of the previous year. The breakdown shows customer traffic at 101.4% and average spend at 103.6% . It is highly impressive that the company achieved a price increase (+3.6% through price hikes and value-added offerings) without sacrificing customer traffic (+1.4%). This proves that the company has strong brand power and customer support, avoiding the customer attrition often seen in other restaurant firms when raising prices.

By division, all major categories exceeded the previous year's same-store performance: Yakiniku (103.9%), Ramen (104.8%), and Yuzuan (109.5%).

---

4. Total Store Trends and Expansion Strategy: Strengthening the Domestic Base and Global Reach

Another factor underpinning the company's growth is its aggressive yet disciplined network strategy .

[Slide Commentary: Why Slide 12 (Total Store Trends) is Important]

This slide lists the total number of stores by brand and format (direct-operated, FC, overseas) from FY2022 to Q4 FY2026. It is a vital document that visually confirms which areas and formats are driving the company's growth trajectory.

As of the end of Q4 FY2026, the group's total store count reached 919 (a net increase of 109 stores from 810 at the end of the previous fiscal year).

Store Breakdown and Trends

• Yakiniku Division : 369 stores (238 direct, 131 FC) — an increase of 18 stores.
• Ramen Division : 251 stores (143 direct, 108 FC) — an increase of 19 stores.
• Yuzuan Division : 116 stores (99 direct, 17 FC) — an increase of 10 stores.
• Specialty & New Formats : 72 stores (68 direct, 4 FC) — an increase of 9 stores.
• Overseas Division : 111 stores (73 direct, 38 FC/other) — a significant increase of 52 stores from 59 in the previous year.

In addition to steady new openings of domestic direct-operated stores (548 total), the number of overseas stores has nearly doubled from 59 to 111, demonstrating the company's ability to rapidly transplant its domestic operational expertise into international markets.

---

5. Financial Foundation, Management Efficiency, and Shareholder Returns

Alongside profit growth, the company has maintained and strengthened its financial soundness and capital efficiency.

• Equity Ratio : 54.1% (maintaining a sound financial level)
• ROE (Return on Equity) : 20.0% (improved from 17.7% in the previous year, proving high profitability)
• ROIC (Return on Invested Capital) : 14.5% (up from 11.7% in the previous year, indicating high capital efficiency)
• EBITDA : ¥18,248 million (significant expansion from ¥14,006 million)

A structure that generates extremely high returns on invested capital (ROIC 14.5%) has been established, maintaining a good balance between growth investment and cash on hand. Operating cash flow also reached ¥16,033 million for the full year.

Shareholder Returns (Dividend Metrics)

• Annual Dividend per Share : ¥23.00 (a ¥5.00 increase from ¥18.00 in the previous year)
• Consolidated Payout Ratio : 18.9%

The company is implementing dividend increases linked to earnings growth, clearly demonstrating a commitment to capital-efficient management and shareholder returns.

---

Summary and Future Outlook

The FY2026 full-year earnings materials reveal an ideal growth story combining a "rock-solid domestic profit structure" with "explosive growth in overseas operations."

1. The three major pillars—Yakiniku King, Marugen Ramen, and Yuzuan— continue to outperform same-store sales from the previous year, generating robust cash flow.
2. While continuing domestic expansion, the company has doubled its overseas store count to 111 , tripling overseas revenue.
3. Efficient store investment and enhanced shareholder returns (dividend increase to ¥23) are backed by high ROE (20.0%) and ROIC (14.5%).

As the company advances its multi-brand and global strategies, attention will focus on its future pace of store openings and the sustainability of its overseas growth as it seeks to further solidify its position in the restaurant industry.