ENVALITH
株式会社ギフトホールディングス logo

GIFT HOLDINGS INC.

9279・Prime Market・Retail Trade

Official website
株式会社ギフトホールディングス logo
GIFT HOLDINGS INC.9279

Business

Gift Holdings Co., Ltd. is a food & beverage group operating domestically and internationally under the business concept "Ramen, as a gift to the world!", built around three core brands: Yokohama Iekei ramen "Machida Shoten", the hearty-style "Buta-yama", and abura soba "Gansoyudo". The company started as a sole proprietorship in Machida City, Tokyo in 2008, and transitioned to a holding company structure in 2022. As of the end of FY2025 (ending October 2025), it operated a total of 901 stores, comprising 287 directly-operated stores and 614 produce stores. Domestically, the company has established store-opening expertise applicable regardless of location—near stations, roadside, or in commercial facilities—while overseas it has expanded into the US, China, Switzerland, Southeast Asia, and other regions. With 20 consolidated subsidiaries, the company operates an in-house manufacturing network of 8 factories for noodles, char siu, and soup, achieving stable food supply and cost control.

Business Model

The business consists of two pillars: the Directly-Operated Store segment (net sales of ¥30,811 million) and the Produce Business segment (net sales of ¥5,067 million). In the Produce Business, the company adopts a unique model in which it does not, in principle, collect franchise fees or royalties, but instead generates revenue through ongoing sales of its own private-brand ingredients (noodles, sauces, soups, etc.) to franchisees. The company leverages buying power through bulk purchasing across all stores and in-house production at its 8 own factories, securing cost competitiveness. By deploying the know-how for running successful stores from its directly-operated stores to Produce Business stores, it has established a structure that expands its store network while keeping capital burden low.

Company Strengths

Established a domestic 8-factory system in FY2025 (ending October 2025), comprising 5 noodle-making plants, 1 char siu (roasted pork) plant, and 2 soup plants. By manufacturing noodles, sauces, and soup in-house, the company eliminates the need for soup craftsmen, reduces waste loss, lowers utility costs, and removes location constraints. The company also benefits from scale advantages through unified procurement across all stores, achieving both cost management and quality stability.

Optimal locations are set for each business format: "Machida Shoten" (roadside, near stations, commercial facilities), "Tonyama" (roadside, near stations), and "Ganso Aburado" (near stations, in-station). Ganso Aburado enables store openings in central office locations, achieving aggressive expansion into Tokyo's 23 wards, an area previously constrained. In FY2025 (ending October 2025), the company achieved a net increase of 50 directly-operated stores, building a 901-store system.

In FY2025 (ending October 2025), domestic directly-operated existing store sales rose a steady 105.8% year on year. Revenue growth of 26.0% exceeded the medium-term management plan target (20% or more). ROE of 23.4% exceeded the target (20% or more), achieving high investment profitability while maintaining an equity ratio of 47.0%.

ENVALITH's Perspective

In H1 FY2026 (ending October 2026), the company achieved net sales of ¥21,239 million (up 23.5% year on year), operating profit of ¥2,640 million (up 70.6% year on year), and profit attributable to owners of parent for the interim period of ¥1,762 million (up 70.7% year on year), continuing its high growth trajectory. Full-year guidance was revised upward (announced June 15, 2026) to net sales of ¥43,900 million (up 22.4% year on year) and operating profit of ¥4,800 million (up 42.5% year on year). The interim progress rate stood at 48.4% for net sales and 55.0% for operating profit, indicating profit progress skewed toward the first half; a careful examination of the likelihood of achieving full-year targets is warranted given the anticipated increase in new store opening costs in the second half.

External factors continuing to affect the business include persistently high rice prices, a surge in pork prices following the suspension of pork imports from Spain, and rising labor costs driven by minimum wage hikes and high-level wage increases from the annual spring labor negotiations (Shunto). On the other hand, through revisiting sourcing regions and cuts leveraging the buying power of its in-house factories, along with phased price revisions, the operating margin improved from 9.0% in the same period of the prior year to 12.4%. That said, continued attention is warranted regarding the risk of renewed spikes in crude oil and energy costs amid tensions surrounding Iran, as well as the decline in Chinese visitors to Japan (down 54.6% year on year) due to strained relations between China and Japan.

Directly-Operated Store Business (Overseas) comprises 6 stores in Shanghai, China (with the 4th, 5th, and 6th stores opened during the interim period), 1 store in Switzerland, and stores centered in New York, United States, though the scale of profit remains limited compared with domestic directly-operated stores. Produce Business (Overseas Franchise) has expanded to 20 stores, with geographic diversification progressing into Southeast Asia, Oceania, and North America, but full-scale profit contribution remains a medium- to long-term challenge. Domestically, management has explicitly identified securing appropriate staffing levels—balancing accelerated new store openings with maintaining quality at existing stores—as the greatest management challenge, and rising recruitment costs and strengthened retention measures may constrain the upside potential for margins.

Growth Strategy

Pursuing sustained growth through accelerated domestic store openings across 3 brands, expansion of in-house factories, and overseas franchise development

Deploying the three brands "Machida Shoten," "Tonzan," and "Ganso Yudo" near stations, along roadsides, and within commercial facilities. In the first half of FY2026 (ending March 2026), net increase of 14 directly-operated stores achieved, reaching 294 stores at the end of the first half. Development of a fourth brand is also being pursued in parallel.

Established a total of 8 factories domestically: 5 for noodle production, 1 for chashu (roasted pork), and 2 for soup. Continuing to strengthen optimal coordination with logistics warehouses in the Kanto, Chukyo, Kansai, and Tohoku regions. Will continue to actively promote the addition of production sites and expansion of production items to enhance buying power and BCP (business continuity planning) capabilities.

Achieved a total of 20 overseas franchise stores by expanding the "Machida Shoten" brand to 17 stores in Asia, as well as Australia and Canada. Strategically continuing negotiations with franchise partners for store openings in Southeast Asia. Also commenced franchise expansion of "Ganso Yudo" in South Korea.

In addition to the Produce Business centered on Yokohama Iekei ramen, also expanding franchise operations for "Tonzan" and "Ganso Yudo." Supporting existing Produce Business store owners in developing new business formats, enriching the business lineup. Operating a combined total of 627 Produce and franchise stores as of the end of the first half.

Sequentially promoting the switch to IH (induction heating) equipment aimed at stabilizing the quality of products served. Maintaining the profit structure amid rising labor costs through improved productivity per labor hour and streamlined operations. Also continuing store renovations to enhance customer comfort.

Last updated: July 17, 2026