Yoshinoya Holdings Co has cut its annual net profit forecast by 98% due mainly to losses related to the withdrawal from slumping family restaurant business. The "gyudon" beef bowl restaurant operator lowered its group net profit forecast for the year to February to 50 million yen from 2.5 billion yen.
The company's takeout sushi chain unit, Kyotaru Co, plans to close 23 restaurants by the end of November as soaring gas prices and weaker consumption made many stores located in suburban areas unprofitable.
Another factor behind the downward revision was asset impairment losses involving Yoshinoya's R-1 Co "ramen" noodles unit.
The company also reduced its operating profit forecast by 28.2% to 5.1 billion yen and its recurring profit estimate by 26.3% to 5.6 billion yen.
Yoshinoya raised its sales forecast by 3.2% to 180 billion yen thanks to the addition of steak restaurant operator Don Co.
For the first half ended August, Yoshinoya now forecasts a net loss of 211 million yen, compared with a net profit of 800 million yen in its previous forecast.© JCN