Doutor Nichires, the Tokyo-listed coffee-shop and restaurant operator, reported operating profit of ¥7.38bn for the six months to August, up 38.1%, on sales of ¥85.74bn, up 7.5%. The company's April forecast for the half-year operating profit was ¥5.74bn, and it described the result as well above plan.
Pricing and mix
Management credits higher-priced seasonal items, a price revision at Doutor Coffee and grand-menu changes at some formats, all aimed at raising spend per customer. The Doutor Coffee group put a price revision into effect on July 23. The company says it has seen no big change in customer numbers in the month before and after the revision.
Same-store sales were 103.1% of the prior year at the Doutor Coffee group and 102.7% at the restaurant-chain segment, an increase of 3.1% and 2.7% respectively. Segment profit at the Doutor Coffee group was ¥4.03bn, up 48.9%, on sales of ¥53.22bn. The restaurant-chain segment earned ¥2.75bn of segment profit, up 21.8%.
Dividend and guidance
The board set the interim dividend at ¥32 a share, against a ¥30 forecast and ¥27 a year earlier. It now forecasts ¥62 for the year, up ¥5 from the prior year, citing a policy of paying out 30% to 40% of earnings. The year-end dividend stays at the original ¥30 forecast, and the company says it will review that figure.
Full-year guidance is unchanged: sales of ¥166.5bn and operating profit of ¥11.04bn. Management says it wants to see further progress first, and it cites rising raw-material, utility, logistics and labour costs. Separately, the board approved a buyback of up to 900,000 shares, capped at ¥2.84bn, with purchases planned for October 14.