ARIGATOU SERVICES COMPANY,LIMITED
3177・Standard Market・Retail Trade
Business
Arigato Service Co., Ltd. is a TSE Standard-listed company headquartered in Imabari City, Ehime Prefecture. Centered on its reuse business (franchise stores for Hard Off, Off House, Hobby Off, Book Off, etc.), the company operates three business segments: reuse, food service (Mos Burger and others), and regional revitalization (hot spring lodging, agricultural product sales, and manufacturing/retail). As of the end of February 2025, the company operated 143 stores and facilities domestically and overseas, with the reuse business spanning Kyushu, Ehime, Okinawa, Cambodia, and Thailand, the food service business spanning Ehime, Kagawa, and Kochi, and the regional revitalization business spanning Ehime and Kyoto. Guided by its management philosophy of "for the sake of the world and for the sake of people," the company is characterized by its community-based, multi-format operations.
Business Model
The reuse business, which accounts for approximately 75% of net sales, adopts a margin-based model in which the company contracts with franchise headquarters such as Hard Off and Book Off, purchasing used goods from consumers for cash and reselling them. In the food service business, the company pays franchise royalties to brands such as MOS Burger while also nurturing its own proprietary brands. The regional revitalization business operates hot spring bathing facilities and agricultural product sales, utilizing subsidies from local governments. The cost structure features high fixed costs, including personnel expenses (27.6% of net sales) and rent (¥1,082 million), but the company is pursuing a scale-expansion model that accumulates profit through sales growth driven by store expansion.
Company Strengths
Reuse business sales for FY2025 (ending February 2025) were ¥7,842 million (up 11.1% year on year), with segment operating profit of ¥1,334 million (up 15.1% year on year). In addition to 108 domestic stores, the company has expanded overseas with 6 stores in Cambodia and 3 in Thailand. Overseas sales expanded roughly 20% year on year to ¥1,619 million (FY2026, ending February 2026), continuing stable growth as a core earnings driver.
Sales grew for four consecutive fiscal years, from ¥8,837 million in FY2022 (ending February 2022) to ¥10,608 million in FY2025 (ending February 2025). Operating profit also doubled, from ¥400 million to ¥880 million. Operating cash flow was stably generated at ¥858 million (FY2025, ending February 2025), and the company has the financial strength to cover ¥408 million in capital expenditures through internal funds and external financing.
In the food service business, unprofitable franchise formats such as Ore no French/Italian, Ikinari Steak, Pepper Lunch, and Asahikawa Miso Ramen Bankara were closed during the fiscal year under review. Despite closing 4 stores, sales increased 2.8% year on year, and segment operating profit rose 23.1% year on year to ¥176 million, demonstrating in concrete figures the improvement in earnings structure achieved through selection and concentration.
ENVALITH's Perspective
Performance Trend
From FY2022 (ending February 2022) to FY2026 (ending February 2026), revenue increased for five consecutive fiscal years, rising from ¥8,837 million to ¥11,398 million, while operating profit more than doubled, improving from ¥400 million to ¥944 million. In Q1 FY2027 (ending February 2027), revenue reached ¥3,122 million (up 15.1% year-on-year), operating profit reached ¥409 million (up 95.4% year-on-year), and quarterly net income attributable to owners of the parent reached ¥257 million (up 78.8% year-on-year), with revenue and profit growth accelerating. As an external factor, resilient demand for reuse goods amid continued price inflation is providing a tailwind, while rising domestic interest rates are increasing household burdens and weighing on personal consumption. The full-year earnings forecast (revenue of ¥11,398 million, operating profit of ¥944 million) remains unchanged.
Growth Strategy
Expanding scale through two pillars: accelerating domestic and overseas reuse store openings and strengthening food service profitability
Promoting the development of a framework and organizational structure to support multiple continuous store openings in the Kyushu region, primarily targeting cities with populations of around 100,000. As of Q1 FY2027 (ending February 2027), the reuse business operated 114 stores, with preparations for continuous store openings underway.
Preparations are underway for a new store opening in Bangkok, Thailand. This is part of the expansion of the overseas reuse business, which already operates in Cambodia and Thailand, aiming to expand the store network in the Asian market.
Continuing to close unprofitable facilities, with 2 facilities closed in March 2026. As of the end of Q1 FY2027 (ending February 2027), the number of facilities was reduced to 6. Segment loss is improving, from ¥(53) million in the same quarter of the previous year to ¥(42) million.
Implemented kitchen equipment renewal and renovations at MOS Burger stores to enhance customer service capability. In Q1 FY2027 (ending February 2027), food service business sales were ¥612 million (up 5.4% year on year), and segment operating profit was ¥54 million (up 34.0% year on year), showing continued profitability improvement.
Renovating aging existing stores to promote store development aimed at becoming the 'No. 1 store in the region.' Continuously strengthening existing store competitiveness through thorough enforcement of store operation standards.
Last updated: July 17, 2026