Ohsho Food Service Corp. (9936) AI Stock Analysis

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Ohsho Food Service Corp.

(TSE/TYO:9936)

Select Model

Rating:67Neutral

Price Target:JPY 3,179.00▲(9.43% Upside)

Action:reiterated

Date:11/02/26

The score is primarily supported by a conservative, resilient balance sheet and still-solid operating profitability, but it is held back by softened TTM revenue/margin trends and weakening cash conversion/free cash flow. Technicals are only mildly constructive, and valuation appears somewhat high given the recent deceleration.

Positive Factors

Conservative balance sheetExtremely low leverage materially reduces financial risk and gives management flexibility to fund remodels, marketing or franchise support during downturns without tapping markets. This durable safety margin supports continuity of operations and strategic optionality over multiple cycles.

Negative Factors

Net margin compressionA meaningful fall in net margin signals either rising structural costs, weaker pricing power, or deteriorating operating leverage. If persistent, this reduces retained earnings and returns, constrains reinvestment or distributions, and requires either cost restructuring or higher revenue growth to restore profitability.

Ohsho Food Service Corp. (9936) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 153.92B
Dividend Yield: 1.93%
Average Volume (3M): 282.22K
Price to Earnings (P/E): 26.2
Beta (1Y): 0.22
Revenue Growth: -0.10%
EPS Growth: -24.16%
Country: Japan
Employees: 2,501
Sector: General
Sector Strength: 55
Industry: Restaurants

Ohsho Food Service Corp. Business Overview & Revenue Model

Company Description

Headquartered in Kyoto, Japan, and established in 1967, Ohsho Food Service Corp. manages a chain of 734 Chinese restaurants across Japan. These establishments are operated and franchised under the Gyoza OHSHO brand.

How the Company Makes Money

Ohsho Food Service Corp. generates revenue mainly by selling prepared food and beverages to customers through its restaurant network. Its key revenue streams include (1) direct restaurant operations, where the company earns sales from dine-in and oth...

Ohsho Food Service Corp. Financial Statement Overview

Summary

Strong balance sheet strength (very low leverage and solid ROE) supports stability, but operating performance is mixed: TTM revenue is slightly down and net margin has compressed versus prior years. Cash flow quality has weakened with lower free cash flow and subpar cash conversion versus net income.

Income Statement

68Positive

Balance Sheet

86Very Positive

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	115.38B	116.84B	111.03B	101.40B	93.02B	84.78B
Gross Profit	77.77B	76.31B	73.35B	67.59B	61.80B	56.39B
EBITDA	12.19B	13.89B	14.30B	13.58B	11.46B	15.63B
Net Income	6.32B	7.47B	8.07B	7.91B	6.21B	8.81B
Balance Sheet
Total Assets	83.34B	85.09B	99.05B	93.40B	85.34B	90.67B
Cash, Cash Equivalents and Short-Term Investments	22.81B	24.53B	38.12B	36.30B	32.03B	37.44B
Total Debt	2.50B	3.00B	5.00B	7.00B	9.00B	16.06B
Total Liabilities	19.16B	20.01B	24.81B	24.76B	22.57B	31.57B
Stockholders Equity	64.18B	65.07B	74.24B	68.64B	62.77B	59.10B
Cash Flow
Free Cash Flow	5.27B	6.35B	7.04B	8.73B	4.12B	11.04B
Operating Cash Flow	9.25B	10.71B	11.21B	12.22B	7.33B	13.60B
Investing Cash Flow	-4.76B	-4.77B	-4.57B	-3.22B	-3.23B	-2.94B
Financing Cash Flow	-4.94B	-19.54B	-4.83B	-4.73B	-9.51B	-12.81B

Ohsho Food Service Corp. Technical Analysis

Technical Analysis SentimentNegative

Last Price2905.00

Price Trends

50DMA2918.53Negative

100DMA2892.35Positive

200DMA2934.24Negative

Market Momentum

MACD3.56Positive

RSI47.89Neutral

STOCH35.20Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9936, the sentiment is Negative. The current price of 2905.00 is below the 20-day moving average (MA) of 2935.45, below the 50-day MA of 2918.53, and below the 200-day MA of 2934.24, indicating a bearish trend. The MACD of 3.56 indicates Positive momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 35.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9936.

Ohsho Food Service Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9936 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3197	74Outperform	JPY 849.95B	43.65	10.08%	0.65%	11.29%	22.50%
JP:7581	72Outperform	JPY 418.73B	37.85	8.59%	0.41%	17.44%	-1.16%
JP:7550	70Outperform	JPY 2.03T	38.72	16.56%	0.63%	11.88%	45.16%
JP:9861	69Neutral	JPY 304.58B	51.53	―	0.49%	9.53%	37.85%
JP:9936	67Neutral	JPY 177.01B	26.19	―	1.93%	-0.10%	-24.16%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7616	55Neutral	JPY 253.54B	120.99	―	0.22%	19.33%	-17.39%

* General Sector Average

Performance Comparison

JP:9936 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9936	Ohsho Food Service Corp.	2905.00	-177.40	-5.76%
JP:3197	Skylark Holdings Co	3673.00	562.71	18.09%
JP:7581	Saizeriya Co	8600.00	3176.42	58.57%
JP:7550	Zensho Holdings Co	12705.00	3593.05	39.43%
JP:7616	Colowide Co., Ltd.	2319.00	576.45	33.08%
JP:9861	Yoshinoya Holdings Co., Ltd.	4691.00	1704.22	57.06%

Ohsho Food Service Corp. Corporate Events

Ohsho Food Service Reports October Sales Growth

Nov 2, 2026

Ohsho Food Service Corp., a food-service operator with company-owned and franchise locations, reported October sales of 8,687 million yen across all company-operated stores, up 3.1% year over year. Existing company-operated stores generated 8,541 mil...

Ohsho Food Service Reports Interim Sales and Profit Shortfalls

Nov 1, 2026

OHSHO FOOD SERVICE reported consolidated interim sales of ¥57.203 billion, operating profit of ¥3.068 billion, ordinary profit of ¥3.262 billion and net profit attributable to owners of ¥2.023 billion for the six months ended September 30, 2026. Thes...

Ohsho Food Service Sees Profit Slump but Maintains Strong Financial Base

Oct 30, 2026

Ohsho Food Service Corp. reported a decline in performance for the second quarter of the fiscal year ending March 2027, with net sales slipping 2.2% year on year to ¥57,203 million. Operating profit fell sharply by 42.3% to ¥3,068 million, while prof...

Ohsho Food Service Shows Stable Sales and Network in September 2026

Oct 2, 2026

Ohsho Food Service Corp., a major Japanese casual dining chain listed in Tokyo, operates 549 company-run stores and 177 franchise outlets, totaling 726 restaurants nationwide. Its reporting distinguishes existing stores from newer and renovated outle...

Ohsho Food Service Keeps August Sales Flat as Traffic Softens

Sep 1, 2026

Ohsho Food Service Corp. reported sales at company-operated stores of 9,517 million yen in August 2026, essentially flat year on year, while existing stores generated 9,376 million yen, a slight 0.3% decline. The data indicate that overall revenue le...

Ohsho Food Service Sees Profit Drop but Holds FY3/27 Outlook and Dividend Plan

Aug 18, 2026

Ohsho Food Service Corp., a major Japanese casual-dining chain specializing in Chinese-style cuisine, operates a broad network of restaurants across Japan under the Gyoza no Ohsho brand. Its business model centers on affordable menu offerings and hig...

Ohsho Food Service Sets Up Wholly Owned Gyoza Diner Subsidiary in Australia

Aug 13, 2026

Ohsho Food Service Corp. has completed the registration of a wholly owned Australian subsidiary, Ohsho Food Service Australia Pty Ltd, based in Sydney and led by President Naoto Watanabe. The new unit will develop and operate Japan-style fast-casual...

Ohsho Food Service Posts Modest July Sales Growth Amid Stable Store Network

Aug 2, 2026

Ohsho Food Service Corp. reported that sales at all company-operated stores in July 2026 reached 8,670 million yen, a slight year-on-year increase to 100.6 percent, while sales at existing company-operated stores rose to 8,481 million yen, or 100.3 p...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 02, 2026

Ohsho Food Service Corp. AI Stock Analysis