What Monogatari (TSE:3097)’s Strong December Sales and Hong Kong Capital Boost Mean For Shareholders

• In January 2026, Monogatari Corporation reported preliminary sales figures for December 2025 showing higher year-over-year net sales growth for the month, second quarter, and first half, and its board approved a capital increase for its Hong Kong restaurant subsidiary.
• The combination of improving sales momentum and fresh investment into the Hong Kong business highlights the company’s focus on expanding its restaurant footprint in Asia.
• We’ll now examine how this continued sales growth, alongside the capital increase in Hong Kong, shapes Monogatari’s broader investment narrative.

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What Is Monogatari’s Investment Narrative?

To own Monogatari, you need to believe in a restaurant group that can steadily grow earnings while expanding overseas without diluting returns. The latest trading update, with slightly stronger year‑on‑year net sales across December, the second quarter and first half, supports the near‑term revenue growth story but does not on its own reset the investment case, especially after the share price has already delivered strong multi‑year returns and is only modestly below analyst targets. The capital increase in the Hong Kong subsidiary, alongside the new Thailand vehicle, reinforces international expansion as a key short‑term catalyst, but it also sharpens the biggest risks: execution in new markets, pressure on margins if openings underperform, and the possibility that a fairly full earnings multiple leaves less room for disappointment. This latest news nudges the narrative more toward growth, and slightly raises the bar for flawless delivery.

However, investors also need to weigh how overseas expansion could strain margins and returns.

Monogatari’s share price has been on the slide but might be dropping deeper into value territory. Find out whether it’s a bargain at this price.

Exploring Other Perspectives

Simply Wall St Community members currently offer a single fair value view around ¥4,183 per share, underscoring how few independent models are published so far. When you set that beside Monogatari’s overseas expansion plans and the execution risks around Hong Kong and Thailand, it becomes clear why checking a range of opinions and scenarios can be useful before forming your own view.

Explore another fair value estimate on Monogatari – why the stock might be worth just ¥4183!

Build Your Own Monogatari Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your Monogatari research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Monogatari research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Monogatari’s overall financial health at a glance.

Interested In Other Possibilities?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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