By Kosaku Narioka
Hiday Hidaka shares rose sharply Tuesday morning after the Japanese ramen-restaurant-chain operator raised its fiscal-year earnings guidance, citing a rise in the number of customers despite higher prices.
The shares were recently 5.0% higher at 2,705 yen after rising as much as 12% earlier.
Hiday Hidaka said after Monday’s market close that it expects net profit to climb 91% to Y2.90 billion ($19.8 million) for the year ending February 2024, up from Y1.85 billion projected previously.
The company said revenue is forecast to increase 23% to Y47.00 billion this fiscal year, up from its previous view of Y44.00 billion, as private consumption is rising thanks to the easing of pandemic-related restrictions.
The number of customers increased even after the restaurant chain raised the prices of food items, Hiday Hidaka said.
The company said efforts to improve operational efficiency, such as greater use of touch panels in order-taking, helped offset higher costs of cooking ingredients, labor and energy.
Write to Kosaku Narioka at [email protected]
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