ENVALITH
株式会社フレンドリー logo

FRIENDLY CORPORATION

8209・Standard Market・Retail Trade

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株式会社フレンドリー logo
FRIENDLY CORPORATION8209

Business

Friendly Co., Ltd. is a food service company that, under the umbrella of its parent company Joyfull Co., Ltd., operates the "Kamaage Sanuki Udon Kanokawa Seimen" chain primarily in the Kansai region (Osaka, Kyoto, Hyogo, Nara, and Wakayama). The company opened its first store in 2009, and in 2020 discontinued all other business formats to concentrate its management resources on Kanokawa Seimen. As of the end of FY2025 (ended March 2025), it operates 26 stores. Osaka Prefecture accounts for 64.6% of sales, making it a regionally focused restaurant chain specializing in the Kinki region. Founded in 1954, this long-established company has undergone a business format transformation to reach its current form, and it is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

The sole source of revenue is food and beverage sales at directly-operated Kamaage Sanuki Udon Kanokawa Seimen stores. The company produces items such as Chinese-style noodle broth and sauces in-house at its own Commissary (Food Processing Plant), aiming to improve profitability by increasing the sales mix of high value-added, low cost-ratio products. The structure combines the introduction of seasonal, higher-priced menu items, repeat customer acquisition through its proprietary app, and per-store profitability management under the superintendent system, targeting profit improvement through both sales expansion and cost containment.

Company Strengths

By in-housing Chinese-style noodles and sauces using its proprietary Commissary (Food Processing Plant), the company has expanded the sales mix of high-price, low-cost-ratio products. Total purchases for FY2025 (ended March 2025) were kept to ¥493,816 thousand, or 96.7% of the prior year, achieving a reduction in the cost ratio even as net sales increased 1.7% year on year.

The company has continuously rolled out seasonal recommended products such as "Gyusuji Bokkake Udon," "Two Kinds of Asari Udon," and "Asari and Chicken Cream Udon," expanding the sales mix of high-value-added, high-priced products. It has clearly articulated a differentiation strategy that sets it apart from low-price competition and store-count expansion competition.

The company belongs to the corporate group centered on its parent company, Joyfull Co., Ltd., and has a structure allowing it to borrow from the parent company in the event of a funding shortfall. It has also entered into a commitment line agreement of ¥300,000 thousand with The Iyo Bank, Ltd. (through May 2026), securing liquidity for working capital.

ENVALITH's Perspective

Following the board resolution on January 19, 2026, delisting was confirmed effective April 27, 2026. Through a share consolidation (converting 1,355,800 shares into 1 share), the shareholdings of shareholders other than Joyfull will be treated as fractional shares, with an estimated payout of ¥315 per share. The final trading day for market sale opportunities will be April 24, 2026. Substantive means of investment recovery for existing shareholders are now limited, and the rationale for continued report coverage is moving toward extinction.

Cumulative nine-month revenue for the first three quarters of FY2026 (ending March 2026) was ¥1,608 million (up 2.8% year-on-year), showing a modest recovery, while the operating loss widened to ¥47 million (versus ¥37 million in the same period of the prior year) and the quarterly net loss expanded to ¥58 million (versus ¥46 million in the same period of the prior year). The revised full-year forecast calls for revenue of ¥2,195 million, an operating loss of ¥17 million, and a net loss of ¥22 million; however, an operating loss of ¥47 million has already been recorded through the third quarter, meaning the forecast presupposes a substantial improvement in profit and loss in the fourth quarter alone. External factors such as elevated labor costs, energy prices, and rice prices continue, and improvement in the cost environment is unlikely to be expected.

As of the end of December 2025, net assets stood at ¥-99 million (versus ¥-40 million at the end of the prior fiscal year), and the capital adequacy ratio was -9.7% (versus -4.2% at the end of the prior fiscal year), indicating a deepening of the excess of liabilities over assets. Short-term borrowings increased by ¥110 million from the end of the prior fiscal year to ¥220 million, and long-term borrowings from affiliated companies also increased to ¥458 million. With total liabilities of ¥1,119 million against total assets of ¥1,019 million, the excess of liabilities over assets continues to widen. Material events concerning going-concern assumptions have been disclosed, and no path toward financial rehabilitation following the delisting has been disclosed.

Growth Strategy

Restoring the earnings power of the existing 26 stores and achieving early profitability through high-value-added products and digital initiatives

Continuously rolling out seasonal menu items such as Tantanmen, Miso Chuka Soba, and Spicy Beef Motsu Tsukesoba to expand the sales mix of high-price, low-cost-ratio products. Newly introduced takeout sets for the year-end and New Year season also captured demand from family customers.

Further advancing in-house production of Chuka Soba and sauces to raise the in-house processing ratio. Concurrently reducing the ratio of imported ingredients to minimize the impact of raw material price increases. Cost ratio reduction effects have been confirmed on a cumulative basis through Q3.

Rolled out PayPay across all stores in December 2025, diversifying payment methods and enabling participation in municipal cost-of-living support programs. Confirmed that strengthened coupon distribution via the proprietary app has increased visit frequency among app-registered members.

Introduced a Superintendent system overseeing 3 to 4 stores each, together with a management support system, to visualize food waste losses, control labor costs, and manage daily and monthly performance. Also promoting early skill development of newly hired employees.

Last updated: July 17, 2026