FUJIO FOOD GROUP INC.

Business Details

The core business of Fujio Food Group, operating a total of 397 directly-operated stores comprising 392 domestic and 5 overseas locations. The company deploys a multi-brand strategy across diverse formats including "Maido Ookini Shokudo," "Kagura Shokudo Kushiya Monogatari," "Mennosho Tsurumaru," "Sachifukuya," and "Tempura Ebinoya," offering everyday and casual dining primarily through in-store cooking and self-service formats to a broad customer base. Of the consolidated Q1 FY2026 (ending December 2026) revenue of ¥8,106 million, this segment accounted for ¥7,738 million (approximately 95%).

Recent Overview

Revenue rose 2.8% year-on-year, but profit declined 7.1% due to rising costs, resulting in higher revenue but lower profit.

Directly-operated business revenue for Q1 FY2026 (ending December 2026) was ¥7,738 million (up 2.8% year-on-year), securing revenue growth, while segment profit declined to ¥732 million (down 7.1% year-on-year). Rising food, energy, and labor costs pressured profit. The company implemented shift control based on time-slot sales analysis, product development leveraging ABC analysis, and customer acquisition measures including seasonal fair campaigns, SNS utilization, and refurbishment of existing stores. No material impairment loss was recorded in the current quarter (in the same period of the prior year, an impairment loss of ¥70 million was recorded due to store closure decisions).

Key Products

Growth Drivers

• Steady continuation of dining-out demand driven by expanding inbound consumption and recovery in foot traffic
• Improvement in existing-store sales for flagship formats, led by sales growth at "Kagura Shokudo Kushiya Monogatari" (up 10.3% year-on-year to ¥2,148 million)
• Strengthened customer acquisition through seasonal fair campaigns, SNS media utilization, and brand awareness initiatives
• Enhanced customer draw and profitability through refurbishment of existing stores
• Cost reduction through shift control based on time-slot sales analysis and product development leveraging ABC analysis
• Continued shift toward a stock-type business model through sale of directly-operated stores and transition to consigned operations

Risks

• Continued rise in food and energy prices creating upward pressure on cost ratios
• Deterioration in SG&A ratio due to rising labor costs (upfront investment in human capital)
• Risk of softening customer traffic due to price pass-through (weakening consumer sentiment)
• Rising store operating costs and recruitment difficulties from chronic labor shortages
• Uncertainty from external factors such as U.S. trade policy trends and geopolitical risks
• Pressure on segment profit from increased company-wide costs (adjustment amount) (from -¥699 million in the same period of the prior year to -¥724 million in the current period)