Consistent Revenue GrowthSustained top-line growth across recent years indicates expanding customer demand and successful unit-level performance. For a restaurant operator, persistent revenue gains support better fixed-cost absorption, incremental operating leverage and fundable reinvestment in menu, service and locations over the medium term.

Stable Gross MarginsA consistently high gross margin (~58%) points to effective cost controls, supplier terms and pricing power on core menu items. Stable gross margins provide a durable cushion against commodity cost swings and give management room to invest in marketing and labor without eroding core profitability.

Improved Leverage And Equity PositionMaterial deleveraging strengthens financial flexibility, lowers interest burden and increases capacity for capital investment or acquisitions. A healthier equity ratio reduces solvency risk for a cyclical consumer-facing business and supports multi-quarter resilience to demand shocks.

Bears Say

Variability In Free Cash FlowDeclining and inconsistent free cash flow weakens the company’s ability to self-fund capex, remodels or strategic initiatives. For a restaurant operator, volatile FCF increases reliance on external financing, constrains dividend or buyback programs, and reduces downside liquidity buffer.

Decline In Net Income / ROE PressureA falling net income and a year-over-year drop in ROE signal margin or demand stress that can limit reinvestment and shareholder returns. Persistent earnings softness would impair internal funding for growth and can erode perceived management effectiveness over multiple reporting cycles.

Relatively Thin Net Profit MarginAlthough improved from prior losses, a single-digit net margin leaves limited tolerance for rising labor, rent or commodity costs common in restaurants. Low net profitability reduces the firm’s ability to absorb shocks and sustain long-term expansion without margin-diluting tradeoffs.

2705 FAQ

What was OOTOYA Holdings Co., Ltd.’s price range in the past 12 months?

OOTOYA Holdings Co., Ltd. lowest stock price was ¥4725.00 and its highest was ¥7200.00 in the past 12 months.

What is OOTOYA Holdings Co., Ltd.’s market cap?

OOTOYA Holdings Co., Ltd.’s market cap is ¥51.34B.

When is OOTOYA Holdings Co., Ltd.’s upcoming earnings report date?

OOTOYA Holdings Co., Ltd.’s upcoming earnings report date is Aug 06, 2026 which is in 164 days.

How were OOTOYA Holdings Co., Ltd.’s earnings last quarter?

OOTOYA Holdings Co., Ltd. released its earnings results on Feb 06, 2026. The company reported ¥37.39 earnings per share for the quarter, beating the consensus estimate of N/A by ¥37.39.

Is OOTOYA Holdings Co., Ltd. overvalued?

According to Wall Street analysts OOTOYA Holdings Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does OOTOYA Holdings Co., Ltd. pay dividends?

OOTOYA Holdings Co., Ltd. pays a Annually dividend of ¥10 which represents an annual dividend yield of 0.17%. See more information on OOTOYA Holdings Co., Ltd. dividends here

What is OOTOYA Holdings Co., Ltd.’s EPS estimate?

OOTOYA Holdings Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does OOTOYA Holdings Co., Ltd. have?

OOTOYA Holdings Co., Ltd. has 7,263,300 shares outstanding.

What happened to OOTOYA Holdings Co., Ltd.’s price movement after its last earnings report?

OOTOYA Holdings Co., Ltd. reported an EPS of ¥37.39 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.603%.

Which hedge fund is a major shareholder of OOTOYA Holdings Co., Ltd.?

Currently, no hedge funds are holding shares in JP:2705

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

OOTOYA Holdings Co., Ltd.

OOTOYA Holdings Co., Ltd., together with its subsidiaries, plans, manages, and operates a chain of restaurants in Japan and internationally. Its restaurants primarily offer set meals and boxed lunches. The company was founded in 1958 and is headquartered in Yokohama, Japan. OOTOYA Holdings Co., Ltd. is a subsidiary of Colowide Co.,Ltd.