HUB CO.,LTD.

Business Details

Operates two brands: the "HUB" brand targeting people in their 20s and 30s, and the "82 (Eighty-Two)" brand targeting people in their 30s to 50s. Stores are opened primarily near train stations, in office districts, and in commercial facilities, offering British cuisine such as fish and chips alongside beer, cocktails, and other drinks as the core offering. The company provides a casual usage environment through its cash-on-delivery system, along with experiential value through sports viewing and IP collaboration events. It also focuses on digital marketing utilizing the Members System (App / Digital Marketing). All revenue is generated domestically (in Japan).

Recent Overview

Q1 net sales and operating profit rose significantly, but net income fell 24.2% year-on-year due to an increased tax burden

In the first quarter of FY2027 (ending February 2027) (March to May 2026), net sales were ¥3,159 million (up 9.2% year-on-year), operating profit was ¥261 million (up 39.7% year-on-year), and ordinary profit was ¥257 million (up 42.0% year-on-year), achieving substantial profit growth at the operating and ordinary profit levels. On the other hand, income tax adjustments shifted from a tax burden reduction of ¥19 million in the same period of the prior year to a tax burden increase of ¥102 million, resulting in net income for the quarter of only ¥146 million (down 24.2% year-on-year). In terms of store openings and closures, the "HUB TOKYO DREAM PARK" store was newly opened in March, while the "82 Shinjuku Nishiguchi Oh-Gado" store was closed in April due to building reconstruction, leaving the total number of stores unchanged from the previous fiscal year-end at 110. The company implemented brand awareness expansion measures, including limited-period store openings at horse racing and bicycle racing tracks and the sale of private-brand products at Seven-Eleven. The full-year earnings forecast remains unchanged from the disclosure on April 13, 2026 (net sales of ¥12,000 million, operating profit of ¥600 million).

Key Products

Growth Drivers

• Nationwide expansion into JR stations and commercial facilities under the store opening strategy "SmasH47" (openings decided for HUB Asty Shizuoka in July, HUB Dotonbori Nakaza Kuidaore Building in August, HUB Amu Plaza Oita (tentative name) in autumn 2026, and near Takasaki Station in winter 2026)
• Realization of the only official public viewing environment among restaurants through cooperation with a video streaming company, and capturing inbound demand through expanded late-night and early-morning broadcasts
• Expansion of "HUB" and "82" brand awareness among a wide range of customer segments through IP and sports content tie-ups, local government collaborations, and limited-period store openings at horse racing and bicycle racing tracks
• Promotion of repeat visits from existing customers through coupon distribution and monthly campaigns (such as the British Campaign) utilizing the member app
• Securing and retaining talented personnel through improved treatment, and enhancing customer service and quality of offerings

Risks

• Cost pressure from continued increases in raw material costs, labor costs, utility costs, logistics costs, and construction costs
• Impact on customer traffic and spending per customer due to growing consumer thrift consciousness
• Prolonged price increases against the backdrop of worsening Middle East conditions and foreign exchange fluctuations
• Risk of downward pressure on net income due to fluctuations in income tax adjustments (such as reversal of deferred tax assets) (a ¥102 million increase in tax burden occurred in Q1)
• Risk of impairment losses on fixed assets due to deteriorating store profitability
• Rise in effective tax rate due to the introduction of the special defense corporate tax (from April 2026)