Revenue GrowthSustained topline expansion—12.5% YoY in 2025—signals durable demand for OOTOYA’s restaurant offerings and improving unit economics. Consistent revenue gains provide a structural base for reinvestment, scale benefits and margin recovery over the next several quarters.

Stable Gross MarginA roughly 58% gross margin reflects strong unit-level economics and effective procurement/food-cost control. Stable gross profitability creates a durable buffer against operating cost fluctuations and supports sustainable operating margin improvement as revenues scale.

Stronger Balance Sheet & Cash GenerationMarked deleveraging and a healthier equity ratio materially reduce refinancing and solvency risk. Positive operating cash flow and an OCF/net income ratio of 1.73 indicate real cash generation, supporting capex, working capital and strategic flexibility over the medium term.

Bears Say

Declining ROEA year-over-year drop in ROE despite stronger revenues suggests reduced efficiency in converting profit into shareholder returns. Persistently lower ROE can signal margin pressure or capital allocation that weakens long-term return on invested capital for shareholders.

Variable And Falling Free Cash FlowDeclining and inconsistent free cash flow reduces financial flexibility and raises the risk that the company cannot reliably fund expansion, debt reduction or shareholder returns without external funding, elevating liquidity and execution risk.

Thin Net Profit Margin And Slight Income DropA modest net margin of 3.9% leaves limited buffer for cost shocks or input inflation. The slight decline in net income despite revenue growth indicates margin sensitivity and constrains reinvestment, dividends and resilience to cyclical downturns.

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 166 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.