KOURAKUEN CORPORATION
7554・Prime Market・Retail Trade
Business
Kourakuen Holdings Co., Ltd. (Kourakuen Co., Ltd.) is a long-established ramen chain founded in 1954, whose core business is a restaurant operation that manufactures and directly sells ramen, gyoza, and other items under the "Kourakuen" brand. As of the end of FY2026 (ending March 2026), the company operated 346 directly-operated restaurants in Japan and 20 franchise restaurants in Japan and overseas (11 domestic, 9 overseas), for a total of 366 restaurants, with a store network spanning 17 prefectures in the Tohoku and Kanto regions. The company employs a manufacturing-and-direct-sales model in which noodles, soup, and other products are manufactured at its own factories (Koriyama and Odawara) and supplied to its directly-operated restaurants. Its main customers are general consumers with everyday dining-out needs, and it emphasizes low prices and high quality. In October 2024, the company absorbed and merged its wholly owned subsidiary, transitioning from a holding company structure to a single operating company.
Business Model
The majority of net sales are derived from food and beverage service at directly-operated restaurants (directly-operated restaurant sales of ¥28,960 million in FY2026 (ending March 2026)). By centrally manufacturing noodles and soup at its own factory and supplying directly-operated restaurants, the company achieves cost control and uniform quality. The Franchise Business supplements earnings through franchise fees (¥3 million), security deposits (¥1 million), royalties (4.5-5% of sales), and sales of ingredients and consumables. Overseas franchises generate revenue through a 2% royalty.
Company Strengths
Since the start of in-house production in 1975, the company has maintained a system of manufacturing noodles and soup at its own factories in Koriyama and Odawara and supplying them directly to directly-operated restaurants. Production output for FY2026 (ending March 2026) was ¥4,991 million on a manufacturing cost basis (up 10.45% year on year). This vertically integrated model supports both the low-price strategy and quality control simultaneously, forming a structural advantage that is difficult for competitors to replicate in a short period.
The Product Planning Department is responsible for research and development, with R&D expenses of ¥46 million in FY2026 (ending March 2026). During the fiscal year, in addition to developing new products such as "Gyokai Tonkotsu Ramen" and "Mega Chuka Soba," the company sold 22 types of seasonal limited-edition products, including 7 summer-limited varieties. This product development capability, which aims to increase visit frequency through both the grand menu and seasonal products, is realized through coordination with the company's own factories.
As of the end of FY2026 (ending March 2026), the company operated a total of 357 domestic stores, comprising 346 directly-operated stores and 11 franchise (FC) stores. These stores are distributed across 17 prefectures including the 6 Tohoku prefectures, Kanto, Koshinetsu, and Shizuoka, with the company promoting dominant store openings within existing trading areas in each region. During the fiscal year, the company renovated 23 stores and opened 2 new stores, continuing to strengthen its store network in both quality and quantity.
ENVALITH's Perspective
Performance Trend
After two consecutive years of operating losses in FY2022 (ending March 2022) and FY2023 (ending March 2023) (-¥2,045 million and -¥1,687 million, respectively), the company turned operating profitable in FY2024 (ending March 2024) (¥33 million), followed by rapid improvement to ¥444 million in FY2025 (ending March 2025) and ¥1,515 million in FY2026 (ending March 2026). In FY2026 (ending March 2026), revenue increased 56.0% year on year due to the full-year consolidation effect of the absorption-type merger, but even on a like-for-like basis using reference materials, revenue increased 5.9% and operating profit increased 42.5%, confirming an improvement in underlying earnings power. As for the external environment, resilient demand for dining out, supported by continued wage increases, served as a tailwind, while rising food ingredient prices, labor costs, and energy costs constrained the upper limit of profit margins. For FY2027 (ending March 2027), the company plans revenue of ¥31,500 million, operating profit of ¥1,600 million, and net income of ¥1,250 million.
Growth Strategy
Accelerating renewed growth through new store openings, store renewals, and new plant construction under "Kourakuen Resilience"
In FY2026 (ending March 2026), 2 new stores opened (including Kourakuen Aeon Mall Akita store, etc.), bringing the total to 366 stores by fiscal year-end. In FY2027 (ending March 2027), the company aims to open 10 new stores, targeting net sales of ¥31,500 million through expansion of the store network.
In FY2026 (ending March 2026), 23 stores were renovated (unification of brand image colors). The ZEB Ready-type store (Asaka store) is being rolled out as a next-generation store format, promoting CO2 emission reductions and upgrades to highly efficient equipment. Renewal activities at the same level as the previous fiscal year are planned to continue in FY2027 (ending March 2027).
Land for the new plant construction was acquired in FY2026 (ending March 2026). Operations are scheduled to commence in December 2028, with expanded manufacturing capacity supporting stable supply of low-priced, high-value-added products and accelerating new store openings.
In FY2026 (ending March 2026), 2 new stores opened in Thailand, expanding the number of overseas franchise stores to 9. The company aims to diversify its revenue sources by building up royalty income from overseas franchises.
New graduate recruitment activities resumed after an 8-year hiatus, welcoming new employees in April 2026. Career hiring, including the promotion of part-time employees to full-time positions, is also progressing steadily. The company aims to improve store QSC and customer satisfaction through store manager training curriculum education.
Last updated: July 19, 2026