Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Japan
  4. Japan Exchange
  5. Global-Dining, Inc.
  6. News
  7. Summary
    7625   JP3274350002

GLOBAL-DINING, INC.

(7625)
  Report
SummaryChartsNewsCalendarCompanyFinancials 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

Japanese restaurant chain sees shares tumble after short-lived Gamestop-style rally

03/24/2021 | 05:05am EDT

TOKYO (Reuters) - Shares in Japanese restaurant chain Global-Dining Inc slid on Wednesday following a Gamestop-style rally sparked by its lawsuit against a government order to cut opening hours in response to COVID-19.

Much like Gamestop, whose shares soared earlier this year as Reddit investors teamed up to squeeze short sellers, Global-Dining's shares had been heavily shorted, which added fuel to the rally.

The restaurant group surged 32.3% on Tuesday, hitting its daily limit, after it filed a lawsuit against the Tokyo Metropolitan government claiming its order to close 26 of its restaurants at 8 p.m. was illegal and not based on scientific evidence.

Its shares continued their rally earlier on Wednesday to hit a three-year high, rising as much as 13.7%, before they reversed course to slide 12.8%.

"Some retail investors liked the company's stance of fighting the authorities and bought the shares," said Tomoichiro Kubota, senior market analyst at Matsui Securities.

The lawsuit won sympathy among those who have seen the social restrictions to curb the pandemic as an excessive intervention in private activities.

"I bought shares today for the first time as I wanted to support Global-Dining. The government's finger-pointing at the company sucks," one investor commented in a popular Yahoo Finance message board.

Japanese media said all but one of the 27 restaurants to which the Tokyo government had issued the order were Global Dining's.

The firm came to fame in 2002 when then-Japanese Prime Minister Junichiro Koizumi and then-U.S. President George W. Bush dined in one of its flagship restaurants, Gonpachi.

In the lawsuit, the firm, whose chains of eateries include La Bohe'me, Zest, and Monsoon Cafe, called for damage compensation of just 104 yen ($0.96), saying the case is not about money.

Global-Dining also raised 13 million yen through crowd-funding to finance the lawsuit, above a target of 10 million yen.

But others were more cynical, saying the company had been struggling financially even before the pandemic.

The firm made net losses in four of the past five years, with an accumulative loss of 2.14 billion yen.

On Twitter, while some praised the firm for standing up against the government, others criticised it as being irresponsible for keeping its restaurants open when most others were compliant.

($1 = 108.61 yen)

(Reporting by Hideyuki Sano, Rocky Swift; Editing by Jan Harvey)

By Hideyuki Sano and Rocky Swift


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
GAMESTOP CORP. 0.06% 161.11 Delayed Quote.755.15%
GLOBAL-DINING, INC. 26.49% 382 End-of-day quote.66.09%
MATSUI SECURITIES CO., LTD. -1.13% 872 End-of-day quote.7.65%
S&P GSCI COFFEE INDEX -0.91% 117.7513 Delayed Quote.19.22%
THE RESTAURANT GROUP PLC -0.95% 126.4 Delayed Quote.96.88%
All news about GLOBAL-DINING, INC.
03/24Japanese restaurant chain sees shares tumble after short-lived Gamestop-style..
RE
03/23GLOBAL DINING  : Restaurant Chain Operator Global-Dining Sues Tokyo Gov't for Re..
MT
03/22GLOBAL DINING  : Restaurant chain sues Tokyo gov't over COVID opening hour restr..
AQ
03/18GLOBAL DINING  : Tokyo's 'Kill Bill' restaurant cuts hours as fines levied over ..
RE
More news
Financials
Sales 2020 5 667 M 52,2 M 52,2 M
Net income 2020 -1 509 M -13,9 M -13,9 M
Net Debt 2020 1 746 M 16,1 M 16,1 M
P/E ratio 2020 -1,56x
Yield 2020 -
Capitalization 3 952 M 36,4 M 36,4 M
EV / Sales 2019 0,32x
EV / Sales 2020 0,72x
Nbr of Employees 185
Free-Float 18,9%
Chart GLOBAL-DINING, INC.
Duration : Period :
Global-Dining, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GLOBAL-DINING, INC.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Managers and Directors
NameTitle
Kozo Hasegawa President & Representative Director
Shintaro Nakao Chief Financial Officer & Director
Kensuke Sawa Independent Outside Director
Meiko Oshima Independent Outside Director
Tsunemaro Kobayashi Director & Vice President
Sector and Competitors
1st jan.Capitalization (M$)
GLOBAL-DINING, INC.66.09%36
STARBUCKS CORPORATION7.25%134 727
COMPASS GROUP PLC19.22%40 547
DARDEN RESTAURANTS, INC.19.00%18 629
SODEXO24.59%15 295
JUBILANT FOODWORKS LIMITED-1.81%4 928