Create Restaurants Holdings Posts Revenue Growth but Net Profit Falls 16% in FY2026

Create Restaurants Holdings Inc. (TSE: 3387) released its consolidated financial results for the fiscal year ending February 28, 2026, on April 14, reporting top-line growth alongside a notable decline in bottom-line profit, according to the company's timely disclosure filed with the Tokyo Stock Exchange.

Key developments

• Revenue and operating profit increased. Full-year consolidated revenue reached ¥165,449 million, a 5.8% year-on-year gain, while operating profit rose 6.6% to ¥7,944 million. Adjusted EBITDA came in at ¥26,271 million, edging up 0.6%.
• Parent net profit fell 16.3%. Profit attributable to owners of the parent declined to ¥4,677 million from ¥5,590 million the prior year, with basic earnings per share dropping to ¥11.11 from ¥13.29. Net profit margin compressed to approximately 3.1% on a trailing basis, down from roughly 3.8% a year earlier, as highlighted in a market analysis by Simply Wall St.
• Stock split and dividends. The company executed a 2-for-1 stock split on September 1, 2025. The annual dividend for FY2026 was set at ¥6.75 per share (split-adjusted), representing a payout ratio of 40.5%, up from 30.1% the prior year. Two new subsidiaries—including Tecona Bagel Co., Ltd.—joined the consolidated scope during the period, while two others were removed.
• Optimistic FY2027 guidance issued. For the year ending February 2027, management forecasts revenue of ¥171,000 million (+3.4%), operating profit of ¥9,000 million (+13.3%), and parent net profit of ¥5,700 million (+21.9%), with projected basic EPS of ¥13.54.

What to watch

The key question heading into FY2027 is whether the company can restore margins sufficiently to meet its earnings growth targets. The guidance implies profit rising significantly faster than revenue, which requires a reversal of the compression trend that weighed on FY2026 results. The next formal milestones are the full Securities Report filing scheduled for May 26, 2026, and the Ordinary General Meeting of Shareholders on May 27, 2026, where shareholders may seek further detail on the margin recovery plan. The dividend payment date is set for May 13, 2026.

Analysts will also be watching the share valuation closely. The stock has been trading at a trailing price-to-earnings multiple of 63.8x—well above the broader Japan Hospitality industry average of 24.5x—at a time when net margins are under pressure.

Sources

• Create Restaurants Holdings FY2026 Financial Results Summary — TDNet via Biggo Finance
• Create Restaurants Holdings FY2026 Financial Results — Japan IR
• Simply Wall St — Create Restaurants Holdings Margin Squeeze Challenges