PEPPER FOOD SERVICE CO.,LTD.
3053・Standard Market・Retail Trade
Ikinari! Steak Business
Pepper Food Service's core steak restaurant chain business, driving overall company performance
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (cumulative Q1 FY2026, ending December 2026) | ¥3,612 million | ¥3,307 million (cumulative Q1 FY2025, ending December 2025) | ↑ |
| Segment profit (cumulative Q1 FY2026, ending December 2026) | ¥428 million | ¥298 million (cumulative Q1 FY2025, ending December 2025) | ↑ |
| Segment profit margin (cumulative Q1 FY2026, ending December 2026) | 11.9% | 9.0% (cumulative Q1 FY2025, ending December 2025) | ↑ |
| Segment sales (full year FY2025, ending December 2025) | ¥13,832 million | － | — |
| Segment profit (full year FY2025, ending December 2025) | ¥1,532 million | － | — |
| Impairment loss (cumulative Q1 FY2026, ending December 2026) | ¥13 million | ¥2 million (cumulative Q1 FY2025, ending December 2025) | ↑ |
Business Details
Operates "Ikinari! Steak," which offers reasonably priced, authentic charcoal-grilled thick-cut steaks, through three formats: directly operated, FC (franchise), and consignment. Expands its customer base through the visit-frequency-linked "Niku Mileage" program, promotions leveraging the official app membership base, and takeout/delivery services. Also promotes overseas expansion centered on Southeast Asia. This is the core segment, accounting for approximately 94% of total company sales.
Recent Overview
Successful measures to boost existing-store sales drove Q1 segment profit up 43.7% year on year
In the cumulative Q1 period of FY2026 (ending December 2026), the Ikinari! Steak segment recorded sales of ¥3,612 million (up 9.2% year on year) and segment profit of ¥428 million (up 43.7% year on year), with segment profit margin improving to 11.9%. Initiatives such as limited-time sales of rare cuts (Kainomi Steak, Blade Meat Steak), the app-member-exclusive collaboration with the "Like a Dragon" series, and the opening of the sixth store in Indonesia all contributed. This segment led the company's overall return to profitability. On the other hand, impairment loss increased to ¥13 million (versus ¥2 million in the prior-year period).
Key Products
Growth Drivers
- Increase in domestic existing-store sales (success of measures to raise average customer spend and customer count, including limited-time sales of rare cuts)
- Retention and expansion of repeat customers through promotional initiatives such as IP collaborations leveraging the official app membership base
- Overseas revenue contribution from accelerated area FC expansion centered on Southeast Asia (Indonesia, Taiwan, Philippines)
- Capturing new demand through new store format openings such as ghost kitchens and next-generation stores
- Improvement in cost ratio through changes in the sales mix among franchise, directly operated, and consignment formats and the effect of menu price revisions
Risks
- Risk of cost ratio deterioration due to rising ingredient prices (particularly live cattle prices for U.S.-produced beef)
- Increased labor costs due to labor shortages (continued increases in wages, allowances, bonuses, and miscellaneous labor costs)
- Risk of additional impairment losses at stores with declining profitability (¥13 million recorded in cumulative Q1 FY2026, ending December 2026)
- Impact on imported ingredient costs from exchange rate fluctuations (continued yen depreciation)
- Risk of losses from debt guarantees due to difficulty securing FC franchisees and deteriorating performance at existing franchise stores
- Headwinds for the restaurant industry as a whole from surging resource prices and rising import prices amid heightened tensions in the Middle East
Last updated: March 26, 2026