ASAKUMA CO., LTD.

Business Details

Founded in 1962, the company's core format is a suburban-type steak restaurant, expanding from its base in the Tokai region into the Kanto and Kansai regions. Centered on "Steak no Asakuma," it operates a total of 82 stores (78 directly-operated + 4 FC) including multiple formats such as the motsuyaki izakaya "Ebisu San" and the curry specialty store "Curry no Asakuma." Targeting mainly family customers, it operates an experience-oriented restaurant model combining a salad bar with experiential desserts. In FY2026 (ending March 2026)*, full-year sales surpassed ¥10,000 million for the first time in 28 years. (*Note: the source fiscal year is January-ending; retained as stated.)

Recent Overview

Sales up 25%, while operating profit down 13% due to upfront costs from new store openings

In the first quarter of FY2027 (ending January 2027) (February to April 2026), the company achieved sales of ¥2,866 million (up 25.0% year-on-year), a substantial increase. Existing store sales exceeded the prior-year level for the 41st consecutive month (115.2% year-on-year). On the other hand, due to upfront costs associated with new store openings, operating profit was ¥97 million (down 13.2% year-on-year), and quarterly net income was ¥52 million (down 43.3% year-on-year), also reflecting the reversal effect from a corporate tax refund recorded in the same period of the prior year. In the first quarter, the company opened three steak-format stores in Nishi-Umeda, Owariasahi, and Tokai Kakiya, as well as a second "Curry no Asakuma" location, bringing the period-end store count to 82. The full-year earnings forecast (sales of ¥12,300 million, operating profit of ¥660 million) remains unchanged. Additionally, at the Board of Directors meeting held on the earnings announcement date (June 10, 2026), the company resolved to conduct a share buyback of up to 67,000 shares and ¥500 million via ToSTNeT-3.

Key Products

Growth Drivers

• Continuation of 41 consecutive months of existing store sales exceeding the prior year (as of April 2026) for "Steak no Asakuma," and improved repeat visit rates through existing store enhancement measures (salad bar expansion, hot bar introduction, experiential dessert offerings)
• Acquisition of new fans and expansion of the customer base through "Meat Day Events" (50% increase in sirloin steak portions), Golden Week special promotions, and all-you-can-eat events (sales at times exceeding 8x the normal same-weekday level)
• Aggressive new store openings (10 or more stores planned for FY2027, ending January 2027) and expansion of trading areas through rebuilding the store network in the Kansai area (Nishi-Umeda, Kyoto Fushimi)
• Diversification of growth drivers and adaptation to varied locations and customer segments through the three-format development of "Steak no Asakuma," "Curry no Asakuma," and "Selected Motsu Sakaba Ebisu San"
• Differentiation and enhanced motivation to visit through customer-participatory store development such as the "Cooking Planner" system (Cantares management)
• Pursuit of a sustained growth strategy toward achieving ¥20,000 million in sales within three years

Risks

• Rising procurement costs due to soaring raw material prices (beef, vegetables, rice) and yen depreciation (cost of sales ratio worsened year-on-year in the first quarter)
• Continued increase in labor-related costs (recruitment, training, minimum wage increases) due to labor shortages
• Increase in upfront costs associated with aggressive store openings (particularly concentrated in the first half of FY2027, ending January 2027) and uncertainty regarding the profitability of new formats
• Increased burden of replenishment and cleaning operations and quality control risk associated with the expansion of salad bar items
• Risk of tax expense recognition due to reduced recoverability of deferred tax assets (the company recorded a deferred tax adjustment of ¥43,200 thousand in the first quarter)
• Uncertainty regarding future dining-out demand due to geopolitical risks and trends in consumption tax law revisions, among other factors