Revenue Growth TrendRevenue expanded consistently through 2021–2025 with a 12.5% gain year-over-year into 2025, indicating durable demand for OOTOYA’s restaurants. Sustained top-line growth supports scale economics, reinvestment in stores, and a longer-term path to improving operating leverage and margins.

Stable Gross MarginsA gross profit margin near 58% reflects resilient unit economics for its teishoku offering and effective cost control. Stable gross margins provide persistent protection against input cost swings and are a durable foundation for delivering consistent operating profitability as revenue scales.

Improved Balance-sheet LeverageLeverage improved materially (D/E from 2.79 to 0.36) and equity ratio rose to 37.7%, strengthening financial flexibility. Lower leverage reduces refinancing and interest risk, enabling the company to fund capex, remodels or modest expansion without jeopardizing solvency over the medium term.

Bears Say

Weakened Free Cash Flow GenerationFree cash flow fell from 2024 to 2025 and the FCF-to-net-income ratio declined, reducing internally generated liquidity. Persistently weaker FCF limits the company’s ability to self-fund capex, pay dividends or reduce debt, raising structural funding and liquidity risk over coming quarters.

Slight Net Income DeclineNet income dipped in 2025 despite revenue growth, compressing profitability. A falling bottom line erodes retained earnings and ROE, making it harder to finance growth internally and signaling that revenue gains have not yet fully translated into durable net profit expansion.

Negative EPS GrowthReported EPS growth is negative (~-13.94%), indicating per-share earnings contraction. Persistent EPS weakness suggests pressure on per-share profitability from margin or non-operating items, which can limit dividend sustainability and shareholder return over multiple reporting periods.

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 ¥7580.00 in the past 12 months.

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

OOTOYA Holdings Co., Ltd.’s market cap is ¥51.85B.

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 145 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.