KISOJI CO.,LTD.

Business Details

A food service business whose main operations consist of processing, cooking, and serving food and beverages. Centered on its core brand "Kisoji" (shabu-shabu and Japanese cuisine, 126 stores), the company also operates the Yakiniku Division "Taishogun" and "Kuidon" (44 stores), as well as an Other Division encompassing izakaya, Japanese cuisine, karaage (fried chicken), and other businesses. Total store count at the end of the fiscal year under review was 189 stores. The company's strength lies in demand for "hare no hi" (special/celebratory occasions), differentiating itself through high-quality hospitality geared toward celebrations and special events. As food service establishments account for nearly all of its business, the company operates as a de facto single segment.

Recent Overview

Net sales and operating profit increased, but net profit declined significantly due to changes in the corporate income tax adjustment amount

For FY2026 (ending March 2026), the company achieved increased sales and profit, with net sales of ¥54,570 million (up 2.5% year on year) and operating profit of ¥2,913 million (up 7.6% year on year). However, due to the impact of the reversal of deferred tax assets recorded in the prior period, total corporate income taxes and other shifted from a credit of ¥763 million in the prior period to a charge of ¥997 million, causing profit attributable to owners of parent to decline substantially to ¥1,728 million (down 45.4% year on year). In terms of store network, 3 new stores were opened, 16 stores were renovated, and 4 stores were closed, bringing the total to 189 stores at period end. The company began restructuring the "Kuidon" yakiniku business format. It also implemented a total of four company-wide store closure days to advance workstyle reform initiatives. For the next fiscal year (FY2027, ending March 2027), the company forecasts net sales of ¥55,000 million (up 0.8% year on year) and operating profit of ¥3,200 million (up 9.8% year on year).

Key Products

Growth Drivers

• Deepening demand for "hare no hi" (special occasions) in the core Kisoji Division (in-house meister certification program, enhanced hospitality for celebrations and special events)
• Increasing average spend per customer and customer traffic through menu expansion (selectable shabu-shabu courses, seasonal limited-time menus featuring seasonal ingredients, revamped dessert offerings, etc.)
• Capturing corporate banquet demand and improving profitability through strengthened external sales efforts at the "Taishogun" yakiniku brand
• Improving profit structure through restructuring of the "Kuidon" yakiniku business format (shifting from an all-you-can-eat focus to menus centered on high-value-added offerings)
• Expanding sales in the Izakaya Division through recovery in banquet demand and new store openings
• Cost control and improved operating profit margin through optimized purchasing and procurement routes, thorough shift management, and updates to energy-efficient equipment
• Advancing growth strategy through new store openings, renovation of existing stores, business format development, and M&A, among other initiatives

Risks

• Cost pressure from rising raw material prices (meat, rice, etc.) and the continued weakening of the yen
• Chronic labor shortages, including the impact of minimum wage increases, and rising labor costs
• Rising energy prices (increased utility costs)
• Uncertainty surrounding the restructuring of the "Kuidon" yakiniku business format (risk of customer attrition associated with the format transition)
• Risk that personal consumption remains only in a moderate recovery due to sluggish growth in real wages amid price increases and entrenched consumer thrift
• Unstable impact on supply chains and resource prices from prolonged geopolitical risk
• Impact on net profit from fluctuations in the corporate income tax adjustment amount due to changes in deferred tax assets