Three F Co.,Ltd.
7544・Standard Market・Retail Trade
Business
Three F Co., Ltd. is a company listed on the Tokyo Stock Exchange Standard Market, founded in 1981. It entered into a capital and business alliance with Lawson in 2016 (transitioned to a business alliance agreement in April 2025), and operates as a convenience store chain headquarters that runs 332 Lawson・Three F (Franchise Chain Headquarters Business) stores (as of end-February 2025) across Tokyo, Kanagawa, Chiba, and Saitama—one metropolis and three prefectures—through its consolidated subsidiary LTF. Its core operations consist of franchise management guidance for franchised stores and the operation of directly managed stores. The company also directly operates 3 stores of gooz, a new-format store concept emphasizing freshly prepared in-store cooking, positioning it as a testing ground (innovation center) for next-generation convenience stores. Its main customers are local residents in the Kanto region and inbound demand from overseas visitors.
Business Model
LTF has entered into a corporate franchise agreement with Lawson, and as the chain headquarters, provides management guidance and merchandise supply to franchisees, generating revenue through royalties and other fees linked to franchisee sales. For FY2026 (ending February 2026), operating total revenue was ¥15,084 million, with an operating margin of 9.4%. The company is in a structural earnings improvement phase as remodeling lease expenses incurred at the time of brand conversion sequentially expire, and it maintains financial management based primarily on internal funds.
Company Strengths
Lease costs incurred from the comprehensive renovation of all stores (each averaging over ¥30 million per store) at the time of the brand conversion to Lawson・Three F (2018–2020) are sequentially expiring. Rent expense declined by ¥315 million, from ¥4,149 million in the previous fiscal year to ¥3,834 million in the current fiscal year, driving a substantial improvement in operating profit from ¥997 million to ¥1,414 million. The company has entered the harvest phase of its medium- to long-term management plan and is in a phase of structural profit expansion.
Average daily sales per store, the most critical KPI in the medium- to long-term management plan, reached the milestone of an annual average of ¥600,000. This is underpinned by a significant increase in sales of daily items such as rice dishes and bakery products, achieved through enhanced use of the AI-powered next-generation ordering system AI.CO, expansion of food delivery services (Uber Eats and menu) to 277 stores, and utilization of promotions commemorating the Lawson chain's 50th anniversary.
Cash and cash equivalents stood at ¥4,157 million as of the end of the fiscal year ending February 2026. Against total assets of ¥5,113 million, net assets stood at ¥4,440 million, resulting in an extremely high equity ratio. The company maintains a financial policy of funding working capital and capital expenditures with its own funds rather than relying on interest-bearing debt, resulting in low financial risk.
ENVALITH's Perspective
Performance Trend
Operating profit fell temporarily from ¥199 million in FY2022 (ending February 2022) to ¥152 million in FY2023 (ending February 2023), then expanded rapidly: ¥909 million in FY2024 (ending February 2024) → ¥997 million in FY2025 (ending February 2025) → ¥1,414 million in FY2026 (ending February 2026). The main driver has been the structural factor of declining lease costs. For Q1 of FY2027 (ending February 2027) on a cumulative basis, results were strong: operating total revenue of ¥3,755 million (up 2.8% year-on-year), operating profit of ¥397 million (up 15.2%), and quarterly net income attributable to owners of the parent of ¥118 million (up 18.0%). The full-year forecast calls for operating profit of ¥1,330 million (down 6.0% year-on-year), a projected profit decline, but the Q1 progress rate of 29.8% is broadly in line with the plan. On the external environment side, rising prices and higher labor costs have pushed up franchisee costs, while increased demand for beverages and ice cream due to high temperatures has supported sales.
Growth Strategy
Building a foundation for sustainable growth through individual store optimization, franchisee stabilization, and formulation of the next medium-term management plan
Continuing to strengthen product lineup expansion and sales promotion support tailored to each store's regional characteristics. Promoting improvement in gross margin and expansion of prepared food sales through enhanced utilization of the Lawson chain's AI ordering system "AI.CO". In Q1, average daily sales per store trended above the previous year's level.
Promoting the sequential renewal of franchise agreements, marking the 10-year milestone since the brand conversion. Reaffirming bonds with franchisees and strengthening support amid rising labor and energy costs. Franchisee profit in Q1 was maintained at a level comparable to the previous year.
Food delivery services have been introduced at 276 of 325 stores. Implementing hardware improvements such as relocating stores where profitability improvement is not expected and expanding parking facilities, strategically enhancing competitiveness against competing stores.
As this marks the final year of the current medium- to long-term management plan (FY2021 (ending March 2021) through FY2027 (ending February 2027)), a new medium-term management plan is being formulated with an eye toward sustainable growth over the next decade. In FY2026 (ending February 2026), the numerical targets for ordinary profit and net income for the period were achieved ahead of schedule.
Last updated: July 17, 2026