MARCHE CORPORATION
7524・Standard Market・Retail Trade
MARCHE CORPORATION (Food & Beverage Business, Single Segment)
A single-segment food and beverage business operating izakaya (Japanese-style pub) chains through both directly operated and franchise formats
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥4,767 million | ¥4,581 million | ↑ |
| Operating profit (loss) | -¥29 million | ¥44 million | ↓ |
| Ordinary profit (loss) | -¥33 million | ¥32 million | ↓ |
| Net income (loss) for the period | -¥45 million | ¥34 million | ↓ |
| Operating margin | -0.6% | 1.0% | ↓ |
| Equity ratio | 24.5% | 12.0% | ↑ |
| Total assets | ¥2,866 million | ¥3,426 million | ↓ |
| Net assets | ¥701 million | ¥410 million | ↑ |
| Cash and cash equivalents at end of period | ¥1,429 million | ¥2,116 million | ↓ |
| Total number of stores (directly operated + FC) | 265 stores (80 directly operated, 185 FC) | 275 stores (76 directly operated, 199 FC) | ↓ |
| Net income (loss) per share | -¥7.13 | ¥1.46 | ↓ |
| Net assets per share | ¥38.70 | ¥12.07 | ↑ |
| FY2027 (ending March 2027) full-year forecast - net sales | ¥5,000 million (up 4.9% year on year) | ¥4,767 million | ↑ |
| FY2027 (ending March 2027) full-year forecast - operating profit | ¥107 million | -¥29 million | ↑ |
Business Details
Composed of four divisions: the Food & Beverage Division (Directly Operated Stores) (Suikoden, Hakkenden, Kyoshinden, Gyoza Shokudo Marken, and other directly operated stores), the FC Division (royalty collection and management guidance for franchisees), the Merchandise Division (supply of ingredients and alcoholic beverages to directly operated stores and franchisees), and other divisions. As of the end of FY2026 (ending March 2026), the company operated a total of 265 stores, comprising 80 directly operated stores and 185 franchise stores. The Food & Beverage Division (Directly Operated Stores) accounts for 69.4% of net sales, the Merchandise Division 21.3%, and the FC Division 7.0%. The company is promoting format conversions and new format rollouts such as Hakken Sakaba (Growth Format) and Yakitori Eenen (New Format).
Recent Overview
Net sales increased, but operating loss resulted from rising labor and logistics costs; the company aims for renewed growth under "Super Reform 5"
In FY2026 (ending March 2026), the company achieved an increase in net sales to ¥4,767 million (up 4.1% year on year), but fell into an operating loss of ¥29 million and a net loss of ¥45 million for the period due to rising upfront costs, labor costs, and logistics costs associated with the pursuit of its growth strategy. An impairment loss of ¥15 million was recorded as an extraordinary loss. Meanwhile, under the management involvement of Tempos Holdings Co., Ltd., which became the largest shareholder in June 2025, the company formulated a renewed growth roadmap toward FY2027 (ending March 2027) called "Super Reform 5," comprising existing store reform, a new high-profitability format model, optimization of selling, general and administrative expenses, menu reform, and human resource development reform. For FY2027 (ending March 2027), the company forecasts a return to profitability with net sales of ¥5,000 million and operating profit of ¥107 million.
Key Products
Growth Drivers
- Existing store reform based on "Super Reform 5" (targeting a mandatory 103% achievement rate for existing store sales across all stores, cost-performance appeals such as 1.5 times larger yakitori portions at Hakkenden with unchanged prices)
- Accelerated format conversion toward mass-market specialty izakaya (rollout of new models such as "Osaka Tennoji Hakken Sakaba" and "New Yamato," cultivation of high-profitability models with monthly sales of ¥600 million or more)
- Strengthening of the management foundation through collaboration with Tempos Holdings (development of new formats through educational support systems and cooperation with subsidiaries)
- Expansion of the new dining-focused brand "Echigo Tsukemen Dondoko" (capturing daytime operating hours and everyday dining demand)
- Strengthening of e-commerce and external sales business (listing of "Dodeka Yakitori" on Amazon, Rakuten, and furusato nozei (hometown tax donation) platforms, building revenue pillars beyond physical stores)
- Optimization of selling, general and administrative expenses (targeting an annual fixed cost reduction of ¥80 million, achieving a sustainable cost structure through more efficient systems)
- Strengthening customer traction through menu revisions every two months from April 2026 and surprising price settings
Risks
- Continued pressure on profitability from rising raw material prices, utility costs, and logistics costs (the company fell into an operating loss in FY2026 (ending March 2026), with selling, general and administrative expenses exceeding gross profit)
- Rising labor costs and difficulty in hiring due to labor shortages (structural challenges persist despite the introduction of a program to make foreign workers immediately productive)
- Continued decline in the number of franchise stores (185 stores at the end of FY2026 (ending March 2026), a net decrease of 14 stores from the previous fiscal year-end), leading to reduced royalty and merchandise sales income
- Decline in cash and cash equivalents (period-end balance of ¥1,429 million, down ¥687 million from the previous fiscal year-end), with negative cash flows across operating, investing, and financing activities
- Risk of delays or shortfalls in the execution of "Super Reform 5" (uncertainty in launching new formats, timing of realizing collaboration effects with Tempos Holdings)
- Growing consumer thrift consciousness amid rising prices and its impact on demand for dining out
- Capital structure risk in which preferred dividends (¥80,000 per share annually) on Class A preferred shares (unlisted) constrain profit attribution to common shareholders
Last updated: June 29, 2026