ENVALITH
ワイエスフード株式会社 logo

Y.S.FOOD CO.,LTD.

3358・Standard Market・Retail Trade

Official website
ワイエスフード株式会社 logo
Y.S.FOOD CO.,LTD.3358

Business

Trailhead Global Holdings Inc. (formerly Y.S.FOOD CO.,LTD.) is a restaurant group holding company established in 1994 and listed in 2005. It transitioned to a holding company structure in January 2026, and its consolidated subsidiaries include Y.S.FOOD CO.,LTD. (Chikuho Ramen Yamagoya, Basaraka, etc.), Yappa Co., Ltd. (Yakiniku Yappa., Kobe Beef Yakiniku Toma, ROTISSERIE★BLUE (Rotisserie Blue)), KINKA FAMILY JAPAN Co., Ltd. (KINKA SUSHI BAR IZAKAYA), and BURGER REVOLUTION (Burger Revolution Co., Ltd.). The group operates a total of 113 stores, comprising 18 directly-operated stores and 73 franchise stores domestically and 22 stores overseas, and also engages in the Real Estate Leasing Business and the contracted operation of hot spring facilities. Its main customers are domestic general consumers, franchisees, and inbound foreign visitors to Japan.

Business Model

The Food & Beverage Business accounts for 91.6% of net sales of ¥1,827 million (FY2026 (ending March 2026)), with revenue sources including directly-operated store sales, franchise fees, royalties, ingredient wholesale from the in-house factory, and internet mail order. Real estate leasing (net sales of ¥35 million) and hot spring facility designated management (net sales of ¥118 million) supplement stable earnings. Full-year contribution from urban premium brands acquired through M&A, along with OEM contract manufacturing with major noodle maker Kikusui, are being nurtured as future earnings pillars.

Company Strengths

In just 10 months since the launch of the new management structure in June 2025, the company completed 5 transactions: making Yappa Co., Ltd. a wholly owned subsidiary, acquiring the ROTISSERIE★BLUE (Rotisserie Blue) business, acquiring the Kobe Beef Yakiniku Toma business, making KINKA FAMILY JAPAN Co., Ltd. a consolidated subsidiary, and making Burger Revolution Co., Ltd. a consolidated subsidiary. M&A investment amounted to ¥524 million in share acquisitions and ¥53 million in business acquisitions, rapidly expanding the group's store count to 113 locations.

The company manufactures ramen noodles, roasted pork, and other ingredients at its own production factory in the Kawara Industrial Park, achieving both stable supply to franchisees and wholesale revenue. Having obtained ISO9001, ISO22000, and HACCP certifications, its quality control standards have been externally recognized, culminating in a basic agreement for OEM contract manufacturing with Kikusui Co., Ltd. (a subsidiary of Itoham Yonekyu Holdings Inc.), a major noodle manufacturer producing approximately 200 million servings annually.

The company holds multiple urban premium brands that directly capture demand from visitors to Japan, including KINKA SUSHI BAR IZAKAYA (KINKA FAMILY JAPAN Co., Ltd.), which has achieved increased revenue and profit for three consecutive fiscal periods, and BURGER REVOLUTION (Burger Revolution Co., Ltd.), which uses 100% domestic wagyu beef and offers Halal-certified options. The company has established a system in which Takahito Nishimura, who has been awarded a Michelin star and Bib Gourmand recognition, serves as CCO to jointly drive menu development and rebranding across all group brands.

ENVALITH's Perspective

Of the ¥82 million in ordinary income for FY2026 (ending March 2026), a ¥93 million valuation gain on call options related to KINKA FAMILY JAPAN and BURGER REVOLUTION shares accounts for the majority. Excluding this, the underlying ordinary income/loss is negative, which is consistent with the operating loss of ¥11 million. M&A integration costs and holding company expenses (total corporate expenses of ¥88 million) weigh heavily, and the earnings power of the core business is still in the process of taking hold. Achieving the FY2027 (ending March 2027) operating income forecast of ¥136 million will require the full-year contribution of acquired brands, making confirmation of integration progress the top priority.

The FY2027 (ending March 2027) forecast of ¥3,600 million in net sales (up 97.1% year on year) is mainly attributable to the first full-year contribution of the five brands acquired in the current fiscal year and the new consolidation of SBWorks. However, retained earnings remain in deficit at ¥639 million, and the company plans to resume dividend payments (annual dividend of ¥2) on the premise of offsetting the deficit through a reduction of capital surplus to be approved at the shareholders' meeting in June 2026. The forecast dividend payout ratio of 143.2% represents a symbolic resumption following deficit elimination, and securing sustainable dividend resources will require stable EBITDA generation from the following fiscal year onward. External factors such as persistently high ingredient and labor costs also continue to weigh on profitability.

Goodwill outstanding at the end of FY2026 (ending March 2026) stood at ¥434 million (entirely attributable to the Restaurant Business), with amortization for the period of ¥14 million. There is a latent impairment risk should the monetization of M&A-acquired brands be delayed. Operating cash flow was also negative at ¥32 million, and excluding the non-cash item of the ¥93 million derivative valuation gain, the underlying cash-generating capacity is limited. While EBITDA expansion is expected in the following fiscal year through the full-year contribution of multiple businesses, structural headwinds in the restaurant industry (persistently high ingredient prices and hiring costs) heighten uncertainty regarding achievement of the plan.

Growth Strategy

Establishing a multi-brand restaurant platform through full-year contribution from 5 M&A-acquired brands plus SBWorks' AI utilization

Yakiniku Yappa., ROTISSERIE★BLUE (Rotisserie Blue), Kobe Beef Yakiniku Toma, KINKA SUSHI BAR IZAKAYA (KINKA FAMILY JAPAN Co., Ltd.), and BURGER REVOLUTION (Burger Revolution Co., Ltd.) will contribute to full-year results for the first time from FY2027 (ending March 2027). The company aims for sales of ¥3,600 million (up 97.1% year on year) through high-value-added business formats directly linked to urban and inbound demand.

The AI technology of SBWorks (AI utilization and IT consulting; FY2026 ending February 2026 sales of ¥675 million, operating profit of ¥20 million), which became a wholly-owned subsidiary on April 28, 2026, will be deployed across all stores, achieving structural improvement in the FL ratio through automated ordering and shift optimization based on demand forecasting.

A basic agreement (March 2026) was reached for OEM production of fresh noodles with Kikusui (under Itoham Yonekyu Holdings), a major noodle manufacturer with an annual production scale of approximately 200 million servings. Starting in the Kyushu and Chugoku-Shikoku areas, the supply area will be expanded in stages, cultivating this into a new pillar of revenue for the Wholesale Business.

Leveraging the international recognition of the Canada-originated brands KINKA SUSHI BAR IZAKAYA and BURGER REVOLUTION (Burger Revolution Co., Ltd.), the company will proceed with preparations for overseas store openings in parallel with multi-store expansion in major domestic cities. BURGER REVOLUTION, which has obtained Halal certification, also has appeal to the Muslim market.

Subject to approval at the June 26, 2026 shareholders' meeting for coverage of the accumulated deficit through a reduction of capital surplus, the company plans to resume an annual dividend of ¥2 (interim ¥1, year-end ¥1) from FY2027 (ending March 2027). Through the elimination of the retained earnings deficit of ¥639 million and the resumption of shareholder returns, the company aims to restore investor confidence.

Last updated: July 19, 2026