ENVALITH
株式会社エスエルディー logo

SLD Entertainment Inc.

3223・Standard Market・Retail Trade

Official website
株式会社エスエルディー logo
SLD Entertainment Inc.3223

Business

SLD Co., Ltd. is a company whose core business is operating restaurants that fuse culture-related content such as music, art, and food, under the corporate philosophy of "To Entertain People." It consists of two services: a dining service that operates 29 directly managed stores (as of end-February 2025) across multiple brands, including "kawara CAFE&DINING," in major urban entertainment districts in the Kanto, Tohoku, Tokai, Kinki, and Kyushu regions; and a content planning service that operates collaboration cafes utilizing IP content such as anime, games, and characters, and provides support for opening stores and contracted operations for other companies (production business). The parent company is DD Group Co., Ltd. The company listed on the Tokyo Stock Exchange (now the Standard Market) in 2015.

Business Model

In the food service business, the main revenue source is food and beverage sales at directly operated stores, with revenue of ¥2,627 million (FY2026). In the content planning service business, revenue of ¥1,033 million was recorded from operating collaboration cafés (at both proprietary and third-party stores) based on licensing agreements with IP holders, as well as from providing opening support and operation outsourcing services (BtoB) for third-party food and beverage stores. The structure aims to improve profitability through in-house production of merchandise and expansion of operation outsourcing.

Company Strengths

The company signed a store operation outsourcing agreement with The Pokémon Company in 2017, and began operating "Pikachu Sweets by Pokémon Cafe" in December 2024. Sales to Pokémon-related business in the fiscal year under review expanded to ¥484 million (13.2% of sales composition) from ¥389 million in the previous year. The company has also signed agreements with multiple leading IP holders, including Square Enix and CA Sega Joypolis.

The company recorded operating losses in FY2022 and FY2023, but returned to profitability with operating profit of ¥134 million in FY2024 through the promotion of management rationalization measures. It has maintained operating profitability for three consecutive fiscal years, with ¥144 million in FY2025 and ¥126 million in FY2026. The company has secured profitability even amid rising raw material costs by reviewing materials used and controlling selling, general and administrative expenses.

The company owns more than 10 brands, including kawara CAFE&DINING, ballo ballo, CheeseTable, and HangOut HangOver, and customizes each store to match the location and spatial characteristics of the property. In-house interior design capabilities enable flexible responses tailored to individual stores. Some brands, such as atari CAFE&DINING, have achieved high growth, with sales up 160.4% year on year.

ENVALITH's Perspective

Operating profit for Q1 FY2027 (ending February 2027) came to only ¥24 million (down 40.3% year on year), representing a progress rate of approximately 13% against the full-year forecast of ¥182 million, a low level. Although the full-year forecast has been left unchanged, the company needs to accumulate ¥158 million in operating profit over the remaining three quarters, resulting in a pronounced skew toward the second half. The suspension for renovation and termination of contracts at some outsourced-operation stores in the content planning service business have weighed on results, and the feasibility of the second-half recovery scenario warrants close monitoring.

Revenue has remained flat in the ¥3,600 million range since FY2024, and the full-year forecast for FY2027 (ending February 2027) also points to a slight decline, at ¥3,626 million (down 0.8% year on year). Q1 revenue also declined, coming to ¥878 million (down 7.0% year on year). Both the food service business (down 3.3% year on year) and the content planning service business (down 15.8% year on year) saw revenue declines, highlighting the challenge of an absence of growth drivers. External factors such as rising raw material costs and labor costs across the restaurant industry as a whole continue to weigh on profitability.

The equity ratio at the end of Q1 FY2027 (ending February 2027) stood at 53.9% (54.8% at the end of the previous fiscal year), maintaining financial soundness, but net assets gradually declined from ¥552 million to ¥543 million due to the dividend on surplus (a dividend of ¥32,000 per share on Class A shares). The dividend on common shares was ¥0 for FY2026 (ended February 2026) as well, and remains undecided for FY2027 at this point. It should be noted that the structural issue of preferential dividends to Class A shares (unlisted) constrains returns to common shareholders.

Growth Strategy

The company aims to improve profitability through three pillars: digital optimization, pricing strategy revamp, and cost reduction.

The company aims to optimize the allocation of promotional costs through more efficient customer acquisition using SNS marketing and digitalization of management systems. In Q1 of FY2027 (ending February 2027), selling, general and administrative expenses were reduced by approximately 6% year-on-year, confirming a certain level of effectiveness.

The company aims to raise average customer spending by enhancing the added value of its IP collaboration cafes. This strategy leverages the broader trend of rising customer spending across the food service industry driven by price revisions, while avoiding price competition by appealing to its own unique content experience value.

The company is reviewing utility usage across all 27 directly-operated stores to reduce costs. This is positioned as a response to the external environment of rising energy costs, and is expected to contribute to improved profit margins.

The company aims to diversify revenue away from dependence on directly-operated stores by expanding support for opening restaurants operated by other companies and outsourced operation management (production business). In Q1 of FY2027 (ending February 2027), sales from this service declined to ¥238 million (down 15.8% year-on-year) due to renovation-related closures and contract terminations at some outsourced-operation stores, making the acquisition of new contracts an urgent priority.

Last updated: July 17, 2026