ENVALITH
株式会社串カツ田中ホールディングス logo

KUSHIKATSU TANAKA HOLDINGS CO.

3547・Standard Market・Retail Trade

Official website
株式会社串カツ田中ホールディングス logo
KUSHIKATSU TANAKA HOLDINGS CO.3547

Business

Kushikatsu Tanaka Holdings Co., Ltd. is a restaurant holding company founded in 1998, which opened its first Kushikatsu Tanaka store in 2008. Its core brand, Kushikatsu Tanaka, operated 357 stores nationwide (188 directly-operated and 169 FC) as of the end of November 2025, and the company has set a long-term goal of spreading Osaka's traditional kushikatsu (deep-fried skewer) culture nationwide. In addition to the Food & Beverage Business, the company operates the House Meal Business, which runs the refrigerated delivery meal-prep subscription service Tsukurio (formerly Tsukurioki.jp); the Interior Construction Business, which handles in-house interior construction for group stores (Group Interior Construction (In-house)); and the Domestic Other segment, which develops new business formats such as Kyoto Tempura Ten no Meshi (Series), thereby building a diversified revenue base. Its main customer base is broad, ranging from families to office workers and inbound tourists, and the company achieves a high visit frequency at a mass-market price point with an average customer spend of approximately ¥2,900.

Business Model

In the Kushikatsu Tanaka segment, revenue is secured through a three-layer structure consisting of Directly-Operated Store Sales (¥13,219 million), merchandise sales to FC (¥3,301 million), and royalty income (¥611 million). The Interior Construction Business (GT Design Co., Ltd.) handles new store openings' interior construction in-house (Group Interior Construction (In-house)), suppressing costs while also winning External Contracted Construction. The House Meal Business secures stable orders through a subscription-based format. The company aims for a vertically integrated model in which each business generates mutual synergies.

Company Strengths

In FY2025 (ending November 2025), Kushikatsu Tanaka's existing-store sales exceeded the prior-year level in all 12 months, achieving a full-year average of 113.1%. The main driver was a 113.1% increase in customer count, supported by the introduction of new standard menu items such as "Mugen Ninniku Horumon Kushi" and expanded brand awareness through SNS and media utilization, which drove customer traffic.

Consolidated subsidiary GT Design Co., Ltd. handles interior construction for directly-operated stores in-house, reducing store-opening costs. In FY2025 (ending November 2025), External Contracted Construction performance was also strong at 150.1% year on year, and with both Group Interior Construction (In-house) demand and external orders contributing, the segment recorded sales of ¥1,867 million (segment profit of ¥102 million).

The House Meal Business, which commenced operations in May 2024, recorded sales of ¥1,302 million (484.8% year on year) in FY2025 (ending November 2025), achieving a turnaround to segment profit of ¥44 million. Strengthened hiring led to improved kitchen utilization rates, establishing consistent full-capacity operation, and a subscription-based model established a stable order base.

ENVALITH's Perspective

Net sales for the interim period of FY2026 (ending November 2026) expanded significantly to ¥17,859 million (up 73.4% year on year), while net income attributable to owners of the parent fell to ¥366 million (down 40.0% year on year). Goodwill amortization related to Pisora of ¥295 million (approximately ¥590 million on an annualized basis) and interest expense of ¥104 million (roughly 10 times the level of the same period last year) significantly weighed on profit. Corporate income taxes, etc. also surged from ¥20 million in the prior year to ¥379 million, and attention should be paid to the fact that the post-M&A financial burden is fundamentally altering the profit structure.

Due to fundraising for the acquisition of Pisora, long-term borrowings surged from ¥1,203 million to ¥10,022 million, and the current portion of long-term borrowings due within one year also reached ¥2,191 million, bringing total interest-bearing debt to over ¥12,000 million. The equity ratio declined from 42.3% at the end of the previous fiscal year to 29.1%. Goodwill outstanding of ¥8,560 million (provisional figure, purchase price allocation not yet finalized) exceeds net assets of ¥7,365 million, and the accounting treatment following the finalization of the purchase price allocation, as well as impairment risk, will be an important point to monitor from a financial perspective going forward.

The full-year forecast for FY2026 (ending November 2026) calls for net sales of ¥36,400 million (up 72.6% year on year), operating income of ¥1,340 million (up 13.0% year on year), and net income of ¥500 million (down 32.8% year on year). While the interim net income progress rate of 73.2% appears high at first glance, goodwill amortization and interest expense will continue in the second half, and the impact of the planned business transfer of the House Meal Business (scheduled for November 30, 2026) remains unclear. Amid an external environment of continued elevated raw material and labor costs, improving profitability in the second half will require the effect of new store openings and maintenance of customer traffic at existing stores, and the likelihood of achieving the earnings forecast warrants careful assessment.

Growth Strategy

Accelerating the scale expansion of the food & beverage group through the construction of a 1,000-store network for Kushikatsu Tanaka and multi-format expansion via M&A

Opened 8 new stores in the first half of FY2026 (ending November 2026), reaching 352 stores by the end of the period. Store-opening pace maintained on the back of customer-drawing power from hit products such as "Mugen Kushi." Cost reduction through in-house interior construction supports acceleration of new openings. A significant gap remains between the current 352 stores and the 1,000-store target.

Pisora was made a wholly owned subsidiary and consolidated effective December 1, 2025, at an acquisition cost of ¥9,500 million. In the first half of FY2026 (ending November 2026), sales reached ¥6,346 million (102.0% of plan), and operating profit before goodwill amortization reached ¥391 million (107.8% of plan), exceeding plan. Efforts to strengthen customer draw are underway, including making the kids' menu free and introducing a monthly-changing craft menu. The purchase price allocation for goodwill (provisionally ¥8,855 million, amortized equally over 15 years) has not yet been finalized, and attention should be paid to the final figures.

Rolling out new formats led by "Kyoto Tempura Ten no Meshi (Series)," along with "Kyoto Wagyu Sukiyaki Shabu-Shabu Tominoue" and "Hikitate Wagyu The Menchi." Opened 4 new stores in the first half of FY2026 (ending November 2026), reaching 12 stores by the end of the period. Continuing to refine the formats while strengthening the capture of inbound demand. The Domestic Other segment posted sales of ¥588 million (up 161.7% year on year) but remained in an operating loss of ¥64 million, with achieving profitability as a key challenge.

Under the policy of concentrating management resources on the Food & Beverage Business and optimizing the portfolio, the company terminated its business alliance with Antway Inc. and signed a basic agreement on June 15, 2026, toward the transfer of the House Meal Business. The planned transfer date is November 30, 2026. Sales of this business in FY2025 (ended November 2025) were ¥1,303 million (6.2% of consolidated sales). The transfer price and transferee have not yet been determined.

Promoting overseas expansion under the "TANAKA" brand. Opened 1 new store in the first half of FY2026 (ending November 2026), reaching 4 stores by the end of the period. Positioned as part of the long-term goal of "becoming a global lifestyle service company that designs food, travel, and experiences," but the scale remains small at present and the contribution to earnings is limited.

Last updated: July 17, 2026