MOS FOOD SERVICES, INC.

Business Details

The core segment that operates food service outlets in Japan using the "MOS Burger" and related trademarks, primarily through a franchise system. In addition to providing hamburgers, rice burgers, MOS Chicken, soups, and drinks, this segment also wholesales ingredients such as patties and buns and packaging materials to franchisees. As of the end of FY2026 (ending March 2026), it operated 1,310 stores domestically, accounting for approximately 82% of consolidated net sales. Centered on the franchise business model, revenue is composed of wholesale sales to franchisees, company-owned store sales, and other operating revenue. Note that from the current fiscal year, the businesses related to MOS50, Stand by Mos, and mosh were transferred to the New Food Service Business.

Recent Overview

All existing-store indicators exceeded the prior year, achieving substantial growth in both sales and operating profit.

In FY2026 (ending March 2026), the Domestic MOS Burger Business achieved substantial growth in both sales and profit, with net sales of ¥83,993 million (up 9.7% year on year) and segment operating profit of ¥7,876 million (up 22.9% year on year). All indicators exceeded the prior year, with existing-store sales at 109.0%, customer count at 106.3%, and average customer spend at 102.5%. The segment continued to promote the "price gradation strategy" and the "leveling of sales by time of day," and cost management measures such as reducing SG&A expenses and improving logistics efficiency also proved effective. On the other hand, with 19 new store openings and 27 closures, the number of stores at fiscal year-end continued to decline on a net basis to 1,310, and the company is proceeding in parallel with the development of a highly profitable model and the consolidation of unprofitable stores.

Key Products

Growth Drivers

• Capturing a broad customer base by expanding the price range from premium to regular through the "price gradation strategy"
• Solid growth at existing stores, with all indicators—sales, customer count, and average customer spend—exceeding the prior year (FY2026, ending March 2026: existing-store sales at 109.0%)
• Improved profit margins through multifaceted cost management, including SG&A expense control, improved inventory turnover, and logistics efficiency
• Improved productivity and customer experience through digitalization, including "Order at Table," "Full Self-Checkout," and an AI voice-recognition automated ordering system
• Capturing cafe demand and stabilizing the sales structure through the "leveling of sales by time of day" initiative
• Cultivating a new revenue source through the Merchandising Business (EC site "Life with MOS")
• Enhancing brand value and customer traffic through the active rollout of region-limited and seasonal campaign products

Risks

• Rising procurement costs due to persistently high raw material and energy prices and exchange rate fluctuations
• Worsening labor shortages in Japan and the resulting increase in labor costs
• Downward pressure on customer count and average spend due to strengthening consumer thrift and uncertainty over the outlook for personal consumption
• Risk of a shrinking store network due to the trend of store closures exceeding openings (FY2026, ending March 2026: 19 openings, 27 closures, net decrease of 8 stores)
• Risk of weakening the franchise base due to deteriorating operating conditions for franchisees (rising labor and utility costs)
• Increasing difficulty in securing profitability for new store openings amid soaring rent and construction costs