Yakiniku Sakai Holdings Inc.

Business Details

The company operates multiple restaurant formats domestically and internationally, with the Yakiniku format (Nikushou Sakai, Yakinikuya Sakai) as its core business, alongside Sushi (Heiroku Sushi), Izakaya (Toriaezu Gohei, Murasaki), Daily Meals & Fast Food (Omuraisu-tei, Agetenya, etc.), and Spaghetti, Italian & Udon formats. It operates a total of 448 stores, comprising 290 directly-operated stores and 158 franchise stores, and also sells products to franchise stores. Its consolidated subsidiaries include Takemoto Foods Co., Ltd., Kabe no Ana Co., Ltd., and Maruhichi Co., Ltd.

Recent Overview

Net sales increased 3.0%, but operating profit deteriorated sharply, falling 66.4%, due to rising costs

In FY2026 (ending March 2026), net sales reached ¥24,249 million (up 3.0% year on year), but selling, general and administrative expenses swelled to ¥15,945 million due to rising raw material, labor, and utility costs, causing operating profit to fall sharply to ¥157 million (down 66.4% year on year). Due to the recording of an impairment loss of ¥222 million and income tax adjustments of ¥284 million, among other factors, net loss attributable to owners of parent was ¥418 million. Directly-operated stores totaled 290, reflecting the closure of 9 stores, the opening of 5 new stores, and the acquisition of 4 stores. Cash flow from investing activities significantly expanded compared to the prior period to -¥1,625 million, due to ¥1,276 million in acquisitions of property, plant and equipment and ¥700 million in loans to affiliated companies, among other factors. In financing activities, the company secured funds by raising ¥3,291 million in long-term loans. For the next fiscal year (FY2027, ending March 2027), the company expects a recovery, forecasting net sales of ¥25,574 million, operating profit of ¥399 million, and net profit attributable to owners of parent of ¥107 million.

Key Products

Growth Drivers

• Steady restaurant demand supported by capturing inbound tourism demand
• New store openings from aggressive expansion of growth formats such as "Omuraisu-tei" and "Agetenya"
• Expansion of overseas store count mainly in Asia through franchising (18 stores at fiscal year-end) and expansion into new areas such as the United States
• Performance improvement driven by rebranding efforts (logo and menu renewal) led by Kabe no Ana Co., Ltd.
• Active capture of inbound tourism demand through initiatives such as the "RINKU FOOD PARK" rebranding by Takemoto Foods Co., Ltd.
• Continued cost management measures through purchasing from multiple companies and regions and changes in suppliers and countries of origin

Risks

• Profit pressure from rising raw material costs (including domestic rice), labor costs, utility costs, and logistics costs (operating margin declined to 0.6%)
• Decline in personal consumption and reduced store visit frequency amid prolonged inflation
• Uncertainty regarding future prospects due to unstable international conditions, foreign exchange fluctuations, and U.S. trade policy trends
• Increase in interest-bearing debt (long-term loans, current and non-current combined, totaling ¥7,154 million) and decline in equity ratio (35.6%)
• Risk of a net decrease in store count due to closure and consolidation of unprofitable stores (9 stores closed during the fiscal year)
• Risk of reversal of deferred tax assets (recording of ¥284 million in income tax adjustments widened the net loss for the period)
• Risk of continued recording of impairment losses (¥222 million in the current period, versus ¥345 million in the prior period)