Saizeriya, the Japanese restaurant-chain operator, has projected a robust earnings growth for the current fiscal year. This positive outlook is supported by the company’s plan to open new restaurants abroad.
The company’s shares have surged by 14% on Thursday morning, reaching 5,530 yen, which is at the upper end of the day’s trading range.
Saizeriya has stated that it anticipates a 59% increase in net profit to Y8.20 billion ($55.0 million) for the fiscal year that commenced in September.
As part of its expansion strategy, Saizeriya plans to add a net total of 50 restaurants overseas while reducing its count by eight in Japan during this fiscal year.
With ambitious goals, the company also forecasts a 15% revenue growth to Y211.00 billion.
During the previous fiscal year that ended in August, Saizeriya experienced a notable increase in revenue by 27% and a significant rise in operating profit. This surge can be credited to the recovery in the number of customers, particularly in China, following the lifting of pandemic-related restrictions. The company opened new restaurants in cities like Shanghai and Guangzhou.
However, Saizeriya acknowledges that the operating landscape will continue to pose challenges in this fiscal year due to increased costs for food, energy, and labor.