ANRAKUTEI Co.,Ltd.
7562・Standard Market・Retail Trade
Business
ANRAKUTEI Co., Ltd. is a restaurant company listed on the Tokyo Stock Exchange Standard Market, founded in 1978. Its core business consists of suburban-format yakiniku (grilled meat) restaurants under the "ANRAKUTEI" and "Shichirinbo" brands, complemented by ARC MEAL (Steak no Don, Shabu-Shabu Dontei, Volks (Steak)), which became a subsidiary in 2020, resulting in a multi-format operation across three segments. As of the end of FY2026 (ending March 2026), the total number of stores—including directly operated, franchise-license (noren), and franchise (FC) stores—stood at 294 (152 stores under the ANRAKUTEI/Shichirinbo Business Format, 134 stores under the ARC MEAL Business Format, and 8 stores under Other Business Formats). The company's main customer base consists of suburban families and business banquet demand, with operations centered mainly in the Greater Kanto region. It also continues overseas operations in Vietnam.
Business Model
The majority of net sales consists of dine-in revenue from directly operated stores. The ARC MEAL Business Format is the core segment, accounting for approximately 64% of group sales, while the ANRAKUTEI/Shichirinbo Business Format accounts for approximately 35%. The company continuously optimizes its earnings structure through the closure of unprofitable stores and business format conversions (from yakiniku to steak and shabu-shabu). Capital expenditure funding is procured through a combination of internal funds, borrowings, and installment purchases, with operating cash flow serving as the primary source of funds.
Company Strengths
The ARC MEAL Business Format achieved net sales of ¥19,606 million (up 5.6% year on year) and segment profit of ¥1,554 million (up 13.3% year on year) in FY2026 (ending March 2026). The segment profit margin of approximately 7.9% significantly exceeds that of the ANRAKUTEI/Shichirinbo Business Format (approximately 2.6%), making it the core driver of group earnings. Store count expansion through business format conversion and active capital expenditure (¥1,276 million) are supporting this growth.
In FY2026 (ending March 2026), four ANRAKUTEI (yakiniku) stores were converted to Volks (Steak) and Shabu-Shabu Dontei formats, while 11 unprofitable stores were closed. The company continues to execute structural transformation, shifting toward the highly profitable ARC MEAL Business Format while leveraging existing store assets and locations, demonstrating its capability for asset reallocation within the group.
Cash flow from operating activities in FY2026 (ending March 2026) was ¥1,971 million (up 51.6% year on year). Net income before income taxes and other adjustments of ¥1,322 million, together with depreciation of ¥847 million, contributed to stable cash generation. Cash and cash equivalents at fiscal year-end stood at ¥7,987 million, securing ample liquidity on hand.
ENVALITH's Perspective
Performance Trend
Revenue trended flat after recovering from the COVID-19 pandemic, moving from ¥23,479 million in FY2022 → ¥28,567 million in FY2023 → ¥30,261 million in FY2024 → ¥30,353 million in FY2025 → ¥30,790 million in FY2026. Operating profit peaked at ¥1,464 million in FY2024, then showed a slight declining trend to ¥1,460 million in FY2025 and ¥1,440 million in FY2026. As external factors, surging raw material prices, energy costs, and labor costs have pushed up SG&A expenses (¥17,631 million in FY2026, up 0.97% year on year), while consumers' increasingly frugal spending amid rising prices has affected customer traffic. The forecast for FY2027 (ending March 2027) anticipates lower revenue and profit, with revenue of ¥30,348 million (down 1.4% year on year) and operating profit of ¥1,303 million (down 9.5% year on year).
Growth Strategy
Revitalizing existing group stores and expanding the ARC MEAL Business Format through business format conversion, DX promotion, and expansion of high-value-added menu items
Converted low-profitability ANRAKUTEI Business Format stores to Volks (Steak) and Shabu-Shabu Dontei, shifting group resources toward high-profitability business formats. In FY2026 (ending March 2026), converted 4 stores and opened 2 new stores. The increase in tangible and intangible fixed assets for the ARC MEAL Business Format was ¥1,326 million (approximately double the ¥663 million in the previous period), continuing aggressive investment.
Promoted the introduction of table-order tablets and delivery robots (at Shabu-Shabu Dontei) across stores in each business format, achieving both operational efficiency amid a severe labor shortage and improved customer convenience. Announced a policy to further accelerate productivity improvements through DX and AI utilization in FY2027 (ending March 2026).
Pursued in parallel measures to promote everyday store visits, such as the "Meat Day Campaign," "& Yakiniku Series," and "free refills of rice and soup," alongside value-added appeals such as store-limited sales of branded wagyu including Matsusaka beef and seasonal fairs. Continued a product strategy that captures both consumers' cost-saving mindset and demand for experiential value.
In FY2026 (ending March 2026), closed 11 stores, mainly unprofitable ones, to improve profitability across the group. Also carried out planned renovations of existing stores. Plans to continue optimizing the store portfolio in FY2027 (ending March 2026) as well.
Announced a policy to continue planned human capital investment in order to build an organization with a clear sense of purpose and to secure and develop diverse talent. Aims to maintain and improve service quality while responding to the severe labor shortage in the restaurant industry.
Last updated: July 19, 2026