Y's table corporation

Business Details

A segment operating 14 directly-managed high-end restaurants (as of the end of Q1 FY2027 (ending February 2027), after the addition of 4 stores following the consolidation of Yamanoue Hotel), including "XEX". The basic policy is to enhance added value, strengthen the brand, and capture inbound demand, driving up average customer spend. "CÉ LA VI TOKYO", operated by equity-method affiliate ICONIC LOCATIONS JAPAN Co., Ltd., also belongs to this group. On March 31, 2026, the company made Yamanoue Hotel Co., Ltd. a subsidiary, acquiring the high-end tempura brand "Tenpura Yamanoue".

Recent Overview

Yamanoue Hotel consolidation added 4 stores; ¥226 million gain on negative goodwill recorded as extraordinary income

On March 31, 2026, the company acquired all shares of Yamanoue Hotel Co., Ltd. (acquisition price of ¥289 million, acquisition costs of ¥10 million), making it a subsidiary. This brought the number of directly-operated stores to 14, and a gain on negative goodwill of ¥226 million (provisional figure) was recorded as extraordinary income. On the other hand, operating profit for the first quarter fell below the prior-year period to ¥148 million (down 8.7% year on year) due to acquisition-related expenses and increased staffing costs. Net sales increased slightly to ¥1,372 million (up 0.7% year on year), supported by strong performance in March, although declining corporate demand and consumer sentiment affected results in April and May.

Key Products

Growth Drivers

• Continued expansion of inbound demand (increase in foreign visitors to Japan and yen depreciation effects)
• Success of the added-value enhancement and average-spend increase strategy (higher-value-added lunch buffets, recovery in dinner demand)
• Acquisition of the "Tenpura Yamanoue" brand and expansion of the "high-end x Japanese cuisine" business through the Yamanoue Hotel Co., Ltd. consolidation
• Incorporation of results from the 4 directly-operated Yamanoue Hotel stores (not yet reflected in the current quarter, with an additive effect expected going forward)
• Increased inbound customer referrals through strengthened partnerships with luxury hotels and travel agencies
• Return to normal operations and the disappearance of prior-period costs following completion of a major renovation (XEX WEST) in the previous fiscal year

Risks

• The purchase price allocation for Yamanoue Hotel has not yet been finalized, and the ¥226 million gain on negative goodwill is a provisional figure that may be revised going forward
• Short-term profit pressure from acquisition-related expenses and integration costs associated with the Yamanoue Hotel consolidation
• Rising labor and recruitment costs amid worsening labor shortages (increased staffing costs pressured operating profit in the current quarter as well)
• Decline in corporate demand and consumer sentiment due to prolonged Middle East tensions and other factors (effects became apparent in April and May)
• Cost pressure from rising prices of ingredients, fuel, and other inputs
• Adverse impact on inbound demand from instability in the international situation
• Seasonal risk of reduced customer traffic due to summer bad weather, typhoons, etc. (seasonal fluctuation in corporate and party demand)
• Impairment loss risk (an impairment loss of ¥34 million was recorded in the XEX Group in FY2026 (ending February 2026))