ENVALITH
株式会社クリエイト・レストランツ・ホールディングス logo

create restaurants holdings inc.

3387・Prime Market・Retail Trade

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株式会社クリエイト・レストランツ・ホールディングス logo
create restaurants holdings inc.3387

Business

Create Restaurants Holdings Inc. is a restaurant group that launched its restaurant business in 1999 and transitioned to a holding company structure in 2010. Domestically, it develops diverse brands across three axes—commercial facilities, urban entertainment districts, and specialty formats—while operating overseas bases in Singapore, Hong Kong, and the United States. The company is composed of four categories: the CR Category (518 stores), the SFP Category (203 stores), the Specialty Brand Category (325 stores), and the Overseas Category (70 stores), and it owns a diverse range of brands including "Shabuna", "Isomaru Suisan", "Ebisoba Ikkgen", and "Il Fornaio". Revenue for FY2026 (ending February 2026) reached ¥165,449 million, and with 25 consolidated subsidiaries, it stands as one of Japan's leading restaurant conglomerates.

Business Model

The basic model is "group federal management," which aims for growth as a group while respecting the independence of each operating company. The head office provides shared services such as purchasing, accounting, and human resources to improve cost efficiency, while each operating company makes independent management decisions regarding brand operations. Revenue is centered on food and beverage sales at directly operated stores, supplemented by contracted operations (contract business) such as golf courses and commercial facilities. Adjusted EBITDA is the key KPI, and ¥26,271 million was recorded in FY2026 (ending February 2026). Acquiring new brands through M&A and optimizing pricing at existing stores serve as the twin drivers of revenue expansion.

Company Strengths

Since commencing operations in 1999, the company has executed numerous domestic and overseas M&A transactions, including SFP Holdings, YUNARI, Saint Germain, and Ikkan Food Company. As of the end of FY2026 (ending March 2026) [note: source says 2026年2月期], the company had 25 consolidated subsidiaries and 1,116 stores, diversifying risk from dependence on any specific business format by holding multiple formats such as izakaya, bakery, ramen, and Western cuisine.

Operating cash flow for FY2025 (ending February 2025) was ¥25,991 million (up 11.6% year on year). With stable cash generation capacity including depreciation and amortization of ¥15,487 million, the company has the financial strength to fund capital expenditures, M&A, and repayment of interest-bearing debt from its own funds. The adjusted equity ratio also improved to 42.9% (from 41.1% in the previous fiscal year).

The contract business, including collaboration with JA Zen-Noh, continues to expand, with 23 stores newly commissioned cumulatively in the current fiscal year. In addition, the company conducts in-group franchise store openings in both the CR Category and SFP Category [note: likely Specialty Brand Category], building a mechanism to expand its store network while keeping initial investment costs low.

ENVALITH's Perspective

In Q1 FY2027 (ending February 2027), revenue was ¥43,277 million (up 3.5% year on year) and operating profit was ¥3,378 million (up 10.8% year on year), achieving both revenue and profit growth. Against the full-year forecast (revenue of ¥171,000 million, operating profit of ¥9,000 million), Q1 progress rates were 25.3% for revenue and 37.5% for operating profit. In terms of the external environment, the entrenchment of "selective spending" amid rising prices and the delayed recovery in customer traffic for alcohol-focused formats are headwinds, while continued inbound demand and the penetration of price revisions are tailwinds. The full-year forecast remains unchanged, maintaining a cautious stance.

The absorption-type merger with SFP Holdings was completed on July 1, 2026, and is expected to be reflected in future results through an increase in profit attributable to owners of the parent due to the elimination of non-controlling interests, as well as through cost reduction effects from eliminating duplication. However, the impact on the consolidated financial statements has not yet been determined. In the Izakaya Category, existing-store sales, centered on "Isomaru Suisan," have continued to fall below the prior-year level, and whether the effects of post-merger structural reform can be confirmed numerically will be a key point of evaluation. The adjusted EBITDA margin stood at 17.5%, down 0.3 points from the same period of the previous year (17.8%), and trends in cost management also warrant attention.

The business transfer of six "Hazelwood Food + Drink" locations in the United States (acquisition consideration of approximately USD 23.4 million) was completed in July 2026, and its contribution to the number of stores and revenue in the Overseas Category is expected to become apparent from the second quarter onward. North American M&A is positioned as an important growth pillar in the medium-term management plan; however, as external risk factors, attention should be paid to the fact that foreign exchange fluctuations (yen depreciation or appreciation) affect acquisition costs and the translation of results, and that the amount of goodwill to be recorded remains unclear because the fair value measurement of acquired assets and assumed liabilities has not yet been finalized.

Growth Strategy

Aiming for sustainable growth through three pillars: evolution of essential value, synergistic M&A, and overseas expansion

Continuing to improve QSC and optimize pricing to increase customer traffic at existing stores. Flexibly implementing business format changes and renovations to well-performing formats. In the Izakaya Category, promoting enhanced app-based customer acquisition for "Isomaru Suisan" and conversion to a mass-market tavern format. Existing store sales year-on-year in Q1 of FY2027 (ending February 2027) were generally solid at 102.8%.

Continuing to execute M&A centered on "everyday" and "staple" formats. In Q1 of FY2027 (ending February 2027), brought RON Co., Ltd. (Western-style cuisine format "Grill RON" etc., strengthening the Kansai dominant strategy) into the group. Decided on July 14, 2026 to acquire all shares of Innocence Co., Ltd. (10 ramen specialty stores in Tokyo including "Ramen Koike" etc.), with group entry scheduled for September 2026.

Expansion of overseas business centered on North America is a key pillar of the medium-term management plan. Completed the business transfer acquisition (from Nova Restaurant Group LLC) of 6 "Hazelwood Food + Drink" stores in Minnesota, USA on July 1, 2026. Approximate acquisition cost was USD 23.4 million. This expands the North American business foundation together with the existing "Il Fornaio" and "Wildflower" operations.

Completed the absorption-type merger effective July 1, 2026, with the Company as the surviving entity and SFP Holdings as the dissolved entity. Promoting optimal allocation of management resources, faster decision-making, cost efficiency through consolidation of duplicate functions, and human capital revitalization through provision of diverse career paths. The impact amount on the consolidated financial statements is currently undetermined.

Last updated: July 17, 2026