ENVALITH
株式会社FOOD & LIFE COMPANIES logo

FOOD & LIFE COMPANIES LTD.

3563・Prime Market・Retail Trade

Official website
株式会社FOOD & LIFE COMPANIES logo
FOOD & LIFE COMPANIES LTD.3563

Business

FOOD & LIFE COMPANIES, Inc. is a restaurant holding company with the VISION of "Changing everyday deliciousness. Spreading joy to the world." Its core subsidiary, Akindo Sushiro Co., Ltd., operates 667 domestic stores of the conveyor-belt sushi chain "Sushiro," and also operates 227 overseas stores across 9 countries and regions: South Korea, Taiwan, Singapore, Hong Kong, Thailand, mainland China, Indonesia, Malaysia, and the United States. Domestically, the company also operates the takeout sushi chain "Kyotaru" and "Kaiten-zushi Misaki" (187 stores combined), as well as the casual sushi izakaya "Sugidama" (95 stores), serving approximately 180 million customer visits annually. Revenue for FY2025 (ending September 2025) reached a record consolidated high of ¥429,574 million.

Business Model

The company enjoys scale benefits from bulk procurement of ingredients by the head office, while an AI demand forecasting system improves procurement accuracy and reduces food loss. Stores are mainly operated on a directly-managed basis, with standardized operations and an emphasis on in-store cooking ensuring uniform quality. Against revenue of ¥429,574 million, the cost of sales ratio was 43.0% (down 0.2 percentage points year on year). Overseas operations are directly managed through local subsidiaries, while Sugidama combines direct management with franchising (FC) to enhance capital efficiency.

Company Strengths

The company operates 667 stores under the domestic Sushiro brand alone (as of the end of FY2025 (ending September 2025)), attracting approximately 180 million customer visits annually. In FY2025 (ending September 2025), Domestic Sushiro Business revenue was ¥265,903 million (up 11.6% year on year), and segment profit was ¥18,008 million (up 26.7% year on year), achieving both scale and profitability.

In FY2025 (ending September 2025), Overseas Sushiro Business revenue rapidly expanded to ¥131,422 million (up 42.6% year on year), with segment profit of ¥16,324 million (up 126.9% year on year). Mainland China entered a phase of expanded growth, and new entry into Malaysia was completed. The company has built a structure of 227 stores across 9 countries/regions, with overseas operations growing into an important pillar of consolidated profit.

Total procurement in FY2025 (ending September 2025) amounted to ¥188,297 million (up 18.9% year on year). In addition to scale merits from centralized headquarters procurement, the AI demand forecasting system has improved the accuracy of ingredient procurement volumes and store order quantities, keeping the cost of sales ratio down to 43.0% (a decrease of 0.2 percentage points year on year).

ENVALITH's Perspective

In the first half of FY2026 (ending September 2026), segment profit of the Overseas Sushiro Business reached ¥12,762 million, surpassing the Domestic Sushiro Business's ¥12,299 million for the first time. While continuing aggressive store openings of 46 stores in the first half, profit margins also improved, with scale expansion and profitability improvement progressing simultaneously. As an external factor, the yen's depreciation has partly boosted the yen-equivalent value of overseas revenue, but business expansion on a local currency basis is the primary driver, which can be assessed as structural growth. Based on the first-half progress rate, the likelihood of achieving the full-year earnings forecast (revenue of ¥505,000 million, operating profit of ¥48,500 million) is judged to be high.

As of the end of March 2026, interest-bearing debt (bonds and borrowings), combining current and non-current, reached ¥78,535 million, while lease liabilities, combining current and non-current, reached ¥146,964 million. Against total assets of ¥429,704 million, the ratio of equity attributable to owners of the parent stood at a low level of 26.3% (improved from 24.0% at the end of the previous fiscal year). As an external factor, if the rising interest rate environment continues, there is a risk of increased borrowing costs and costs associated with lease renewal terms. Operating cash flow of ¥40,553 million (up 54.7% year on year) remains solid, and debt repayment capacity is maintained, but balancing this against the expansion of investing cash flow (¥20,753 million) accompanying continued aggressive store openings remains a challenge.

Amid continued industry-wide headwinds from soaring prices of raw materials including rice, rising energy prices, and chronic labor shortages, the operating profit margin for the first half of FY2026 (ending September 2026) improved to 11.0% (from 9.6% in the same period of the previous year). Employee benefit expenses within selling, general and administrative expenses increased to ¥66,207 million (up 21.0% year on year), but the growth rate of revenue (up 24.7%) exceeded this, resulting in effective fixed cost leverage. Adjusted EBITDA maintained a high level at ¥37,262 million (up 37.4% year on year), indicating robust earnings-generation capability before depreciation. However, continuous monitoring is needed regarding the scope for price pass-through and the impact on customer traffic should cost inflation persist over the long term.

Growth Strategy

Pursuing scale and profitability simultaneously through three axes: domestic urban store openings, overseas multi-country expansion, and Sugidama FC expansion

While carefully selecting properties and locations, 46 new stores were opened in the interim period, expanding to 279 stores by period-end. New formats were also developed in parallel, including the first entry into new provinces and cities in mainland China and the rollout of the Digiro format in Taiwan. The segment profit margin has improved due to fixed cost leverage effects, achieving both profitability and growth simultaneously.

Under the theme "Straight to Sushi!", premium products (Special Toro Medium Fatty Tuna, Rich Sea Urchin Wrap, etc.) were continuously introduced, along with collaboration campaigns with popular content. Expanded adoption of Digiro is also being promoted to enhance customer experience value. Domestic Sushiro revenue in the interim period of FY2026 (ending September 2026) increased 12.0% year on year, maintaining stable growth.

Expanding through both directly-managed and franchise (FC) stores, the network grew to 102 stores (22 FC stores) as of the end of March 2026. Exceeding 100 stores in the brand's ninth year since establishment. Through asset-light expansion via FC rollout, the business is advancing profitability while leveraging the group's overall procurement and operational capabilities, with segment profit sharply improving by 448.9% year on year.

Priority is being given to improving profitability through the rationalization of unprofitable stores (15 stores closed in the interim period) and strengthening EC sales. Segment profit in the interim period of FY2026 (ending September 2026) achieved a significant improvement to ¥392 million (up 763.8% year on year). Although revenue declined 6.4% year on year, the shift toward a more profitable business model is progressing.

A stock split at a ratio of 2 shares for every 1 share of common stock is planned to take effect on July 1, 2026. This aims to lower the investment amount per unit and expand the investor base, including individual investors, while improving stock liquidity. The total number of issued shares is scheduled to double from 116,069,184 shares to 232,138,368 shares.

Last updated: July 17, 2026