HIDAY HIDAKA Corp.

Business Details

Guided by the management philosophy of "serving delicious food with heartfelt care," the company operates a restaurant chain centered on ramen, gyoza, and Chinese cuisine across the Tokyo metropolitan area (Tokyo and 6 surrounding prefectures). It operates "Hoken no Madoguchi"—wait, correcting: it operates "Hidakaya" (440 outlets) as its core format, along with "Yakitori Hidaka" (28 outlets) and others. The Gyoda Plant (Food Manufacturing & Logistics Function) provides integrated management from noodle, gyoza, and seasoning manufacturing through to logistics, achieving quality uniformity and low-price provision. At the end of the first quarter of FY2027 (ending February 2027) (end of May 2026), the number of directly-managed outlets stood at 472 (2 new openings, 2 closures).

Recent Overview

First-quarter net sales and all profit measures reached record highs on a quarterly basis, with sales up 11.4% and profit up 13.0% year on year

For the first quarter of FY2027 (ending March 2027) (March to May 2026), net sales were ¥16,994 million (up 11.4% year on year), operating profit was ¥2,114 million (up 13.0% year on year), and quarterly net profit was ¥1,436 million (up 13.4% year on year), with all metrics setting new quarterly record highs. Even after the March 27 grand menu revision and price changes, the number of customer visits increased, and March and May each set new all-time high monthly sales records (net sales set new same-month record highs for 39 consecutive months, and customer visits for 32 consecutive months). Meanwhile, due to rising prices for rice, pork, and other ingredients, the cost of sales ratio rose to 31.2% (compared to 30.3% in the same period prior year). With 2 new outlet openings (1 each in Ibaraki and Tochigi, both roadside locations) and 2 closures, the outlet count was maintained at 472. Touch-panel ordering systems have been expanded to approximately 90% of outlets (429 outlets), and food-serving robots are in operation at 71 outlets (75 units). The full-year earnings forecast remains unchanged.

Key Products

Growth Drivers

• Customer visits increased even after the grand menu revision and price changes, with net sales and customer visits setting new same-month record highs for 39 and 32 consecutive months, respectively
• Expansion of the outlet network through new openings (5 outlets planned in the second quarter) and strong performance from new stores' sales
• Expansion of domestic market share outside the Tokyo metropolitan area through the first outlet opening in Niigata Prefecture (April 2026) based on an FC agreement with Ocean System Co., Ltd.
• Labor savings and efficiency improvements through DX initiatives, including touch-panel ordering systems (429 outlets, approximately 90%), food-serving robots (75 units at 71 outlets), and self-checkout registers (21 outlets)
• Increased customer visits driven by limited-time menu items (such as black vinegar soy sauce cold noodles and spicy tonkotsu tsukemen) and campaigns such as the "Double Highball Festival"
• Steady dining-out demand supported by increased inbound consumption and robust leisure demand
• Sales uplift from delivery service promotional campaigns and the extension of business hours that had been shortened during the COVID-19 pandemic
• Decline in the SG&A ratio (56.3%, versus 57.4% in the same period prior year) due to the effect of increased revenue

Risks

• Deterioration of the cost of sales ratio due to rising prices for rice, pork, and other ingredients (31.2% in the first quarter versus 30.3% in the same period prior year)
• Continued rise in labor costs and recruitment-related expenses following a wage increase of approximately 7.1% implemented in April 2026 (the 6th consecutive year of increases)
• Increasing trend in store operating costs such as utilities, logistics costs, and consumable supplies expenses
• Increasing trend in outlet opening costs such as store construction and equipment costs, along with intensifying competition to secure well-located properties
• Impact on ingredient and energy costs from external environmental uncertainties such as yen depreciation trends, US trade policy, and Middle East affairs
• For the full year of FY2027 (ending February 2027), the wage increase promotion tax system is not expected to be applied, and net profit is planned to decrease 4.9% year on year to ¥4,500 million
• System migration risk and cost increases associated with the advancement of the core system renewal project