ATOM CORPORATION

Business Details

Operates multiple formats including Steak Miya, Nigiri no Tokubei, Kaisen Atom, Karubi Taisho, Aji no Ganko Honoo, Katsuji, and Chiisana Mori Coffee. Following the transfer of the Izakaya Business (company split to Colowide Dining in February 2025) and the Karaoke Business (company split to Shin Corporation in March 2025), the company transitioned to a single Restaurant Business segment from this fiscal year. Operating primarily in regional, suburban, and roadside locations from the Tohoku region to the Kansai region, the company is pursuing rebuilding of its earnings base under the basic policy of "returning to the roots of dining out." The number of stores at fiscal year-end was 247 (237 directly-operated stores, 10 franchise stores).

Recent Overview

Net sales declined 14.3%, but the segment turned from operating loss to operating profit; however, net loss reached ¥1,507 million and the equity ratio deteriorated to 25.4%.

In FY2026 (ending March 2026), net sales were ¥30,408 million (down 14.3% year on year) due to the reduction in business scale following the company splits of the Izakaya Business and Karaoke Business. On the other hand, cost reduction effects in selling, general and administrative expenses led to operating income of ¥25 million, turning positive from the prior year's operating loss of ¥670 million. However, the recording of an impairment loss of ¥677 million, combined with an increase in treasury stock of ¥2,127 million due to the acquisition of Class B preferred shares (20 shares) held by Colowide, resulted in a significant deterioration of the financial base, with a net loss for the period of ¥1,507 million, net assets of ¥3,680 million (down from ¥7,302 million in the prior year), and an equity ratio of 25.4% (down from 38.5% in the prior year). The company opened 3 new stores, closed 6 stores, and converted the format of 3 stores, ending the period with 247 stores. For FY2027 (ending March 2027), the company forecasts net sales of ¥31,775 million and operating income of ¥930 million.

Key Products

Growth Drivers

• Improvement in average customer spending and enhancement of experiential and informational value through the April 2026 revision of the grand menu (new pricing theme)
• Improved utilization rates and investment efficiency through new store openings combining the hamburger steak cafe "Grillé Mia!" with cafe functionality
• Transformation of the earnings structure of existing assets through format conversion to "Ootoya Gohandokoro," leveraging Colowide Group synergies
• Continued stable growth driven by two consecutive periods of sales growth in the sushi formats (Nigiri no Tokubei, Kaisen Atom)
• Cost-performance appeal and customer base expansion through the expansion of domestic beef all-you-can-eat courses in the yakiniku format
• Boost to customer traffic and average spending from resilient personal consumption backed by improving real wages and inbound demand
• Improved customer traffic and profitability through planned renovations of existing stores

Risks

• Continued upward pressure on cost ratios due to persistently high costs for ingredients (rice, meat, seafood), energy, and logistics
• Continued rise in personnel costs and difficulty in hiring due to labor shortages
• Risk of declining customer traffic due to intensifying consumer thrift and selective spending amid price increases
• Ongoing risk of impairment losses and closure costs for unprofitable stores (impairment loss of ¥677 million in the current fiscal year)
• Weakening financial base due to the decline in equity ratio to 25.4% and the reduction of net assets to ¥3,680 million
• Reduced fixed cost coverage due to the shrinking of sales scale (down 14.3% year on year) following the company splits of the Izakaya and Karaoke businesses
• Outlook for further increases in raw material prices amid foreign exchange volatility and geopolitical risk