YOSHINOYA HOLDINGS CO.,LTD.

Business Details

The domestic gyudon (beef bowl) and other fast food business under the Yoshinoya brand. Operates and provides management guidance to directly-operated and franchise stores. As of the end of Q1 FY2027 (ending February 2027), the segment operated 1,287 stores. In March, the six domestic Yoshinoya operating companies nationwide were consolidated into a single company to centralize decision-making and improve management efficiency. The number of new service model stores expanded to 600, and the segment is promoting increased customer traffic through product and sales initiatives centered on gyudon, its founding product.

Recent Overview

Consolidation of six domestic companies and strengthened product/sales initiatives drove a sharp improvement, with revenue up 13.7% and profit up 169.3%.

In Q1 FY2027 (ending February 2027) (March to May 2026), segment revenue reached ¥39,064 million (up 13.7% year on year) and segment profit reached ¥2,498 million (up 169.3% year on year). In March, the six domestic Yoshinoya operating companies nationwide were consolidated into a single company through absorption-type merger, achieving unified management. Product initiatives proved successful, with the "Gyudon & Aburasoba Set" surpassing 1.5 million servings sold in about one month. TV commercials featuring a new ambassador and various campaigns contributed to new customer acquisition and improved repeat visit rates. During the quarter, 10 new stores opened and 13 stores closed, resulting in a net decrease of 3 stores.

Key Products

Growth Drivers

• Continued expansion of new service model (Cooking & Comfort) stores (600 stores), enhancing customer experience value
• Increased customer traffic through new gyudon-based products and toppings ("Niku Miso Negi Gyudon," "Rou Rou Gyudon," "Gyudon & Aburasoba Set," etc.)
• Store-visit promotion through TV commercials featuring a new ambassador and sales initiatives such as the "Gyudon Bento 2-for-800 Yen Campaign" and "Topping Festival"
• Centralized top management decision-making and strengthened management efficiency and profitability through consolidation of the six domestic Yoshinoya operating companies into one
• Promotion of sustainable growth leveraging the Yoshinoya brand's unique value through the full operation of the Group Marketing Headquarters

Risks

• Cost pressure from rising prices of raw materials, particularly rice
• Continued increase in labor costs due to minimum wage hikes and base pay raises
• Increasing difficulty in cost control due to rising utility, logistics, and construction material costs
• Foreign exchange volatility risk from prolonged geopolitical risk and US trade policy
• Risk of labor shortages due to declining birthrate and aging population
• Risk of declining customer traffic and average spending due to weaker consumer sentiment
• Risk of continued impairment losses (¥292 million in impairment losses recorded on a consolidated basis in Q1 FY2027 (ending February 2027))