ENVALITH
株式会社ハイデイ日高 logo

HIDAY HIDAKA Corp.

7611・Prime Market・Retail Trade

Official website
株式会社ハイデイ日高 logo
HIDAY HIDAKA Corp.7611

Business

HIDAY HIDAKA Co., Ltd. is a Chinese-style restaurant chain company founded in 1973 in Omiya Ward, Saitama City. Under its management philosophy of "providing delicious food with heartfelt care," the company directly operates a total of 472 stores as of the end of February 2026, comprising 210 stores in Tokyo, 109 in Saitama Prefecture, 73 in Kanagawa Prefecture, 59 in Chiba Prefecture, and 21 across the three northern Kanto prefectures. Centered on its core format "Hidakaya" (440 stores; including Chuka Shokudo Hidakaya and Rairaiken), the company also operates multiple other formats such as "Yakitori Hidaka" (Yakitori Hidaka, including Taishu Sakaba Hidaka) (27 stores). With a low-price, high-quality menu exemplified by its ¥420 Chinese-style noodle dish (chuka soba), the company attracts a broad customer base and has built an overwhelming store network in the greater Tokyo metropolitan area, centered on station-front locations. By consolidating ingredient purchasing and the manufacturing and logistics of noodles, gyoza dumplings, and seasonings at its Gyoda Plant (Food Manufacturing & Logistics Function), the company achieves quality uniformity and cost control.

Business Model

Sales consist of restaurant sales (customer count × average spend per customer) across all directly operated stores, forming a single-format, direct-management revenue structure. By producing noodles, gyoza, and seasonings in-house at the Gyoda Plant, the company manages raw material costs and ensures consistent quality. While securing strong customer traffic through concentrated store openings at prime station-front locations, it is also promoting labor savings through DX investments such as touch-panel ordering, delivery robots, and self-checkout registers. The structure is such that a decline in the SG&A expense ratio driven by higher sales (58.6% in FY2025, ending February 2025) directly translates into improved profit margins.

Company Strengths

The company has consolidated manufacturing of noodles, gyoza, seasonings, and processed products, along with logistics, at the Gyoda Plant (Food Manufacturing & Logistics Function), with plant output for FY2026 (ending March 2026) reaching ¥5,051,456 thousand (on a manufacturing cost basis). In-house production achieves uniform quality and cost control, maintaining differentiation from competitors even as the cost ratio rises. The plant has also obtained ISO22000 (Food Safety Management System) certification.

As of the end of February 2026, the company operated 472 directly-managed stores across Tokyo and 6 surrounding prefectures, with 210 stores in Tokyo, 109 in Saitama, 73 in Kanagawa, and 59 in Chiba, covering the key areas of the greater Tokyo metropolitan region. The company has continued its strategy of concentrated openings at prime station-front locations for over 50 years. Sales and customer traffic have each set new same-month record highs for 36 consecutive months and 29 consecutive months, respectively, with existing stores maintaining a high level of customer-drawing power.

As of the end of FY2026 (ending March 2026), the company had zero interest-bearing debt and an equity ratio of 72.8%. It secured operating cash flow of ¥6,047 million, funding investment activities (¥2,484 million) entirely from internal funds. The company has maintained financial soundness while paying growth dividends for 18 consecutive years (¥452 million in FY2026, ending March 2026).

ENVALITH's Perspective

The cost of sales ratio for the first quarter rose 0.9 percentage points from the same period of the previous year (30.3%) to 31.2%, as soaring prices of ingredients such as rice and pork are squeezing profitability. Given that ingredient prices remain elevated as an external factor, it is commendable that the company maintained an operating margin of 12.4% by lowering the SG&A ratio through the effect of revenue growth. That said, while the full-year operating profit forecast of ¥6,800 million (up 3.3% year on year) shows a favorable progress rate of 31.1% in the first quarter, the lack of a clear outlook for improvement in the cost ratio warrants continued attention.

Expansion outside the Greater Tokyo area is progressing, including the company's first store opening in Niigata Prefecture (an FC with Ocean System) and new store openings in Ibaraki and Tochigi. However, by region, Tokyo accounts for 46.8% of sales, and the three prefectures of Saitama, Kanagawa, and Chiba combined account for 48.8%, meaning the four prefectures of the Greater Tokyo area still account for 95.6% of total sales. The FC business remains at an early stage in terms of both sales scale and number of stores, and it is likely to take considerable time before the effect of diversifying geographic concentration risk becomes apparent. With five new store openings planned for the second quarter, the pace of store openings and the profitability trends of new stores will be key to achieving the medium-term plan.

The full-year earnings forecast for FY2027 (ending February 2027) calls for increases in both revenue and profit, with net sales of ¥67,000 million (up 7.6% year on year), operating profit of ¥6,800 million (up 3.3%), and ordinary profit of ¥6,800 million (up 3.2%), while net profit attributable to owners of parent is forecast to decline to ¥4,500 million (down 4.9%). The reason why only net profit is projected to decrease compared to the previous fiscal year's (FY2026, ending February 2026) net profit of ¥4,732 million is not explicitly stated in the financial results report, but fluctuations in the effective tax rate or the impact of extraordinary income and losses may be contributing factors. First-quarter net profit of ¥1,436 million represents a progress rate of 31.9% against the full-year forecast of ¥4,500 million, and the profit level in the second half warrants attention.

Growth Strategy

Aiming for sustainable business expansion through a 600-store network in the greater Tokyo metropolitan area, FC development, and DX promotion

Expanding the store count while improving profitability by combining new store openings with the closure of unprofitable stores. In the first quarter, 2 stores were opened and 2 stores closed, bringing the network to 472 stores. In the second quarter, 5 store openings are planned, with continued aggressive expansion in both prime station-front locations and roadside locations.

Based on an FC agreement with Ocean System Co., Ltd., the first "Hidakaya" store in Niigata Prefecture opened on April 3, 2026. Having gained a strong response with many customer visits, preparation and support for the next store opening are ongoing. Promoting geographic diversification and new market development outside the greater Tokyo metropolitan area.

Touch-panel ordering systems have been expanded to 429 stores (approximately 90% of the total), with serving robots operating at 71 stores (75 units) and self-checkout at 21 stores. A core system renewal project has also been launched, with business requirements identification underway. Aiming to both absorb upward pressure on labor costs and enhance the customer experience.

On March 27, 2026, a grand menu revision and a price revision centered on set meals were implemented for the "Hidakaya" format. Through campaigns such as the "W Highball Festival," orders of both products increased to 1.5 times the level of the same period last year. Even after the price revision, the number of customer visits continued to increase, and monthly sales reached record highs in March and May.

Secured 107 new graduate hires and 13 mid-career hires for spring 2026. Implemented a wage increase of approximately 7.1% combining base pay increases and regular salary increases (the 6th consecutive year), also raising starting salaries for new graduates. Newly established a Cooking Improvement Committee, promoting employee motivation and skill development through service contests and other initiatives.

Last updated: July 19, 2026