Declining Food Service Profit Due to Front-Loaded Costs at New Stores and Higher Personnel Costs
First written in FY2023-Q2. 5 of 12 entries say "Worsened", first in FY2023-Q3. Latest entry: FY2026.
Axyz moved to the "Worse" side of this theme in 2025.
0 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「On the profit side, segment profit was ¥230 million, down 13.1% year on year, due to front-loaded costs at new stores and increases in raw material costs, personnel expenses and other costs.」
The decline in food service profit due to front-loaded costs at new stores and increases in raw material costs, personnel expenses and other costs continued, with segment profit down 13.1% year on year. - FY2026-H1WorsenedAnnual report
「In the food service business, the company opened 3 KFC stores during fiscal 2025, resulting in a 6.9% year-on-year increase in sales. On the profit side, segment profit declined 12.3% year on year to ¥230 million due to front-loaded costs at the new stores and increases in personnel expenses and other costs.」
The decline in food service profit attributable to front-loaded costs at new stores and increases in personnel expenses and other costs has widened from 7.3% in the same period of the previous year to 12.3%. - FY2025-H1ReframedAnnual report
「In the food service business, although the company withdrew from operating PH (Pizza Hut) stores, sales increased 3.3% year on year as a result of opening new KFC (Kentucky Fried Chicken) stores in the previous fiscal year and higher selling prices. On the profit side, profit declined 7.3% year on year as a result of higher personnel expenses.」
Compared with the previous explanation centred on front-loaded costs at new stores, the current explanation places greater emphasis on higher personnel expenses as a factor behind the 7.3% decline in food service profit. - FY2024ReframedAnnual report
「In the food service business, the company opened a new store in Kobe, Hyogo Prefecture, in May this year. As a result, sales were ¥3,654 million, up 4.5% from the previous fiscal year. On the profit side, segment profit was ¥317 million, down 2.7%, due to a higher cost ratio and increases in personnel expenses and other costs.」
Following the previous explanation of a decline in profit due to front-loaded costs at new stores and higher personnel expenses, the current fiscal year saw sales increase after the opening of a new store, while full-year segment profit declined 2.7% due to a higher cost ratio and increases in personnel expenses and other costs. - FY2024-Q3Wider increases in food service sales and profit after opening new storesAnnual report
「In the foodservice business, the opening of a new store in the previous fiscal year resulted in revenue growth of 5.6% year on year and profit growth of 6.8% year on year.」
The food service business continued to post higher sales and profit after the opening of new stores. The sales growth rate widened from 4.5% in the previous quarter to 5.6%, while the profit growth rate widened from 1.9% to 6.8%. - FY2024-Q2Smaller increase in food service profit after opening new storesAnnual report
「In the foodservice business, the opening of a new store in the previous fiscal year resulted in revenue growth of 4.5% year on year and profit growth of 1.9% year on year.」
The food service business continued to post higher sales and profit after the opening of new stores, and the previous decline in profit due to front-loaded costs at new stores and higher personnel expenses has not continued. Meanwhile, the profit growth rate narrowed from 7.8% in the previous quarter to 1.9%. - FY2024-Q1MitigatedAnnual report
「In the foodservice business, the opening of a new store in the previous fiscal year resulted in revenue growth of 8.0% year on year and profit growth of 7.8% year on year.」
Previously, the company had reported a decline in profit due to front-loaded costs at new stores and increases in personnel expenses and other costs. This time, it explains that after opening new stores in the previous fiscal year, both sales and profit exceeded the same period of the previous year, mitigating the adverse impact. - FY2023ReframedAnnual report
「In the food service business, the company opened new stores in Kobe, Hyogo Prefecture, in August last year and in Yanai, Yamaguchi Prefecture, in October. As a result, sales were ¥3,498 million, up 9.2% year on year. On the profit side, segment profit was ¥326 million, down 11.0%, due to a higher cost ratio and increases in personnel expenses and other costs.」
The full-year explanation places greater emphasis on the higher cost ratio and increases in personnel expenses and other costs as factors behind the decline in profit, compared with the explanation through Q3, which centred on front-loaded costs at new stores. - FY2023-Q3WorsenedAnnual report
「In the foodservice business, the opening of multiple stores during the fiscal year resulted in revenue growth of 8.1% year on year. However, profit declined 10.7% year on year because the new stores incurred costs ahead of revenue and personnel and other expenses increased.」
The decline in food service profit attributable to front-loaded costs at new stores and higher personnel expenses and other costs has widened from 3.4% in the previous report to 10.7%. - FY2023-Q2First statedAnnual report
「In the foodservice business, the opening of multiple new stores during the fiscal year resulted in revenue growth of 6.8% year on year. However, profit declined 3.4% year on year because the new stores incurred costs ahead of revenue and personnel and other expenses increased.」
Although sales increased following the opening of new stores, the company states for the first time that food service profit declined by 3.4% year on year due to front-loaded costs at the new stores and increases in personnel expenses and other costs.