YOSHINOYA HOLDINGS CO.,LTD.
9861・Prime Market・Retail Trade
Business
Yoshinoya Holdings Co., Ltd. is a restaurant holding company founded in 1958. Domestically, it operates "Yoshinoya" (gyudon fast food) and "Hanamaru" (self-service Sanuki udon) as its core brands, while overseas it operates gyudon and other fast food outlets in the United States, China, and the ASEAN region. As of the end of FY2025 (ending February 2025), the group operated 2,821 stores (1,674 domestic, 998 overseas). The group consists of 36 consolidated subsidiaries and 7 equity-method affiliates, and is nurturing its ramen business (Takara Sangyo and Kirameki no Mirai) as a third business domain. Its main customer base spans a broad range of age groups with everyday dining-out needs, underpinned by a low-price, high-turnover fast food model.
Business Model
Across the Yoshinoya, Hanamaru, and overseas brands, the company operates a multi-store network combining directly-operated and franchise outlets, building up sales through a customer-volume-driven business model based on low prices and high turnover. While securing cost competitiveness through common procurement managed by the Group Product Division, it improves average customer spend and visit frequency through price revisions, new product launches, and promotional campaigns. A notable feature of its financial structure is the centralized management of surplus funds from domestic consolidated subsidiaries at the head office to improve capital efficiency.
Company Strengths
As of the end of FY2025 (ending February 2025), the number of domestic stores in the Yoshinoya segment stood at 1,259. Existing-store sales grew steadily, up 7.4% year on year, and segment sales reached ¥137,804 million (approximately 67% of total group sales). The number of stores adopting the new service model (Cooking & Comfort) expanded to 540, aiming to enhance customer experience value.
The equity ratio improved substantially from 30.0% in FY2021 (ending February 2021) to 53.9% in FY2025 (ending February 2025). The interest coverage ratio stood at 47.0x, and the ratio of interest-bearing debt to cash flow was 1.3 years, maintaining a high level of financial soundness. Changes in the earnings structure following the COVID-19 pandemic have contributed to strengthening the financial base.
The company operates four segments—domestic Yoshinoya, Hanamaru, Overseas, and Ramen business (Other)—diversifying the risk of dependence on a single brand. In FY2025 (ending February 2025), Hanamaru segment profit grew 16.3% year on year to ¥2,005 million, showing strong growth, while sales in the Ramen business (Other) expanded sharply, up 64.4% year on year to ¥9,632 million.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal periods, rising from ¥153,601 million in FY2022 to ¥225,667 million in FY2026. In Q1 of FY2027 (ending February 2027), revenue accelerated to ¥58,771 million (up 12.5% year-on-year). Operating profit temporarily declined to ¥7,306 million in FY2025 but recovered to ¥8,089 million in FY2026, and improved substantially to ¥2,544 million (up 140.8% year-on-year) in Q1 of FY2027 (ending February 2027). The main drivers of improvement were management efficiency gains from the integration of the six domestic Yoshinoya companies, the full-scale operation of the Group Marketing Headquarters, and a 9.8% year-on-year increase in company-wide existing-store sales. As external factors, rising raw material costs, labor costs, and utility costs continued, but sales growth driven by increased customer traffic outpaced the cost increases. The full-year forecast remains unchanged, with revenue of ¥242,000 million (up 7.2% year-on-year) and operating profit of ¥8,500 million (up 5.1% year-on-year).
Growth Strategy
Pursuing sustainable growth along three axes: evolution of domestic service formats, optimization of overseas operations, and establishment of ramen as a third business domain
In March 2026, the six domestic Yoshinoya operating companies were absorbed via merger, unifying top management decision-making. Integrated operation of head office functions and operating companies aims to optimize the allocation of management resources and improve fixed-cost efficiency. Together with the full-scale launch of the Group Marketing Headquarters, the company is pursuing sustainable growth by increasing customer counts through leveraging Yoshinoya's unique brand value.ingredient
Continued expansion of the new service model stores that enhance customer experience value reached 600 stores as of the end of Q1 FY2027 (ending February 2027). Combined with the introduction of new products and toppings rooted in gyudon (beef bowl) (the "Gyudon & Abura Soba Set" surpassed 1.5 million servings sold about one month after launch), the company aims to acquire new customers and improve repeat visit rates.
Takara Sangyo's domestic manufacturing bases are being expanded from the current 2 sites to 5 sites, deepening in-house manufacturing capabilities. This aims to stabilize quality and strengthen cost competitiveness, while optimizing the food ingredient supply system for the entire group.
Through scrap-and-build conversion of closed stores into ramen format, overseas ramen store openings, and new ventures into a produce business supporting prospective store owners, the company aims to cultivate the ramen business as the group's third pillar of earnings. This promotes diversified business development leveraging the group's collective expertise.
In the United States, the company continues to strengthen app-based promotions and stabilize quality through the full-scale operation of the commissary, driving profit recovery. In China, the company is promoting the use of its membership system, shortening the new product introduction cycle, and leveraging delivery platforms. By simultaneously closing unprofitable stores and opening new ones, the company aims to improve the quality of earnings across its 1,041 overseas stores.
Last updated: July 17, 2026