Worth reading
82Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
650
¥ billion (revenue target for the fiscal year ending February 2032)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+51.2%
基準 43Target65100 million
Operating profit+18.5%
基準 27Target32100 million
Operating profit margin+5.0pt
基準 27Target32%
ROE+5.0pt
基準 27Target32%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planFY2/27 target: revenue of ¥50.0 billion, operating profit of ¥2.5 billion, operating margin of 5.0%, ROE of 8.0%, EPS of ¥100 and 650 stores → FY2/27 landing forecast: revenue of ¥43.0 billion, operating profit of ¥1.25 billion, operating margin of 2.9%, ROE of 4.0%, EPS of ¥40 and 500 stores-23.1%Calculated from the two disclosed figures
Total investment planCapital expenditures: ¥17.0 billion; strategic investments, including M&A: ¥4.0 billion
Investment amount by sectorField Food Business / Amount ¥8.7 billion, Field Food-Service Business / Amount ¥6 billion, Field Overseas Business / Amount ¥1.1 billion, Field Management Foundation / Amount ¥800 million, Field Other / Amount ¥400 million, Field Strategic investments, including M&A / Amount ¥4 billion
Statements about the use of capital
Payout ratio / DOE policyTargeting a shareholder return ratio of at least 100%. Over the five-year plan period, the company aims to double the total of the per-share dividend and shareholder benefit value for holders of 100 shares, targeting ¥130 in FY2/32.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalCost of shareholders' equity: 8.5%The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Key initiatives
01Improve QSC (quality, service and cleanliness)
02Improve the profitability of existing stores
03Accelerate new store openings
04Sales Enhancement
05Strengthening marketing
06Strengthened Product Development
07Improve factory profitability
08New Format Development
09Deepen the focus on Asia
10North American market development
11Recruit and promote next-generation management talent
12Strengthening of the internal audit system
13Review the management structure for franchised stores
14Improving Board Effectiveness
15Strengthen IR (including dialogue with the capital markets)
16Food Waste Reduction
17Greenhouse Gas Reduction
18Coexistence with local communities
19Diversity
20Health Management
Plan assumptionsA reduction in the consumption tax on food products for two years from April 2027, The food service market is expected to continue expanding as people flows recover following the COVID-19 pandemic and for other reasons., The market for the Chinese-food category within frozen foods is expected to expand., The Kyushu factory is scheduled for completion in December 2026, with production capacity of 1,300 tonnes per month planned from the start of operations.
Segment targetSegment Food Business / Net Sales ¥35.0 billion / Operating profit ¥2.9 billion, Segment Food-Service Business / Net Sales ¥30 billion / Operating profit ¥1.4 billion
Size of the Target MarketThe Chinese-format food service market was ¥1,069.5 billion in 2025 and is projected to reach ¥1,191.6 billion in 2030, representing an overall CAGR of 1.8%. Source: Fuji Keizai, Gaishoku Sangyo Marketing Binran 2026. The food market comprises grilled gyoza at ¥73.5 billion in 2025 and ¥79.5 billion in 2032 (CAGR: 1.13%), boiled gyoza at ¥7.8 billion and ¥8.1 billion (CAGR: 0.63%), fried rice at ¥105.8 billion and ¥119.2 billion (CAGR: 1.72%), and shumai at ¥49.1 billion and ¥52.4 billion (CAGR: 0.93%). Source: Fuji Keizai, Shokuhin Marketing Binran 2026. The 2025 market size and growth rate for xiaolongbao and one-plate meals are estimates by the company.
Risks identified by the company
Competitive risk
Rising costs for raw materials, logistics, energy and other items
Labor shortages, partly due to the suspension of acceptance of specified-skilled workers
Population decline and contraction of the domestic market due to the declining birthrate and aging population
A growing tendency to economize due to stagnant real wage growth
Diversification of eating habits, including prepared meals, delivered meals and mail-order food
An increase in the perceived price premium of eating out due to a consumption tax cut on food products
Risks related to food safety, BCP and other matters
Reason for revision or withdrawal
The food business grew into a core business, benefiting from changes in consumer behavior after the COVID-19 pandemic, while the recovery of the food service business was delayed and the pace of store openings was revised. The creation of business synergies leveraging the dual-engine management model also remains incomplete, and issues became apparent in group management and the human resources foundation, the management control structure, the profitability of the food service business, and the food business's product portfolio and production efficiency.
| Item | Details |
|---|---|
| Plan name | SYNERGY DRIVE 2032 |
| Plan period | Fiscal years ending February 2028 through February 2032 (five years beginning in fiscal 2027) |
| Progress against the plan | Formulated |
| Sales Target | FY2/27 landing forecast: ¥43.0 billion → FY2/32 target: ¥65.0 billion（8.6% CAGR） |
| Operating profit target | FY2/27 landing forecast: ¥1.25 billion → FY2/32 target: ¥3.5 billion（22.9% CAGR） |
| Operating profit margin target | FY2/27 landing forecast: 2.9% → FY2/32 target: 5.4% |
| ROE target | FY2/27 landing forecast: 4.0% → FY2/32 target: 14% (13.6% shown in the graph) |
| Payout ratio / DOE policy | Targeting a shareholder return ratio of at least 100%. Over the five-year plan period, the company aims to double the total of the per-share dividend and shareholder benefit value for holders of 100 shares, targeting ¥130 in FY2/32. |
| Cost of capital | Cost of shareholders' equity: 8.5% |
| Total investment plan | Capital expenditures: ¥17.0 billion; strategic investments, including M&A: ¥4.0 billion |
| Investment amount by sector | Field Food Business / Amount ¥8.7 billion, Field Food-Service Business / Amount ¥6 billion, Field Overseas Business / Amount ¥1.1 billion, Field Management Foundation / Amount ¥800 million, Field Other / Amount ¥400 million, Field Strategic investments, including M&A / Amount ¥4 billion |
| Segment target | Segment Food Business / Net Sales ¥35.0 billion / Operating profit ¥2.9 billion, Segment Food-Service Business / Net Sales ¥30 billion / Operating profit ¥1.4 billion |
| Plan assumptions | A reduction in the consumption tax on food products for two years from April 2027, The food service market is expected to continue expanding as people flows recover following the COVID-19 pandemic and for other reasons., The market for the Chinese-food category within frozen foods is expected to expand., The Kyushu factory is scheduled for completion in December 2026, with production capacity of 1,300 tonnes per month planned from the start of operations. |
| Key initiatives | Improve QSC (quality, service and cleanliness), Improve the profitability of existing stores, Accelerate new store openings, Sales Enhancement, Strengthening marketing, Strengthened Product Development, Improve factory profitability, New Format Development, Deepen the focus on Asia, North American market development, Recruit and promote next-generation management talent, Strengthening of the internal audit system, Review the management structure for franchised stores, Improving Board Effectiveness, Strengthen IR (including dialogue with the capital markets), Food Waste Reduction, Greenhouse Gas Reduction, Coexistence with local communities, Diversity, Health Management |
| Results under the previous plan | FY2/27 target: revenue of ¥50.0 billion, operating profit of ¥2.5 billion, operating margin of 5.0%, ROE of 8.0%, EPS of ¥100 and 650 stores → FY2/27 landing forecast: revenue of ¥43.0 billion, operating profit of ¥1.25 billion, operating margin of 2.9%, ROE of 4.0%, EPS of ¥40 and 500 stores |
| Reason for revision or withdrawal | The food business grew into a core business, benefiting from changes in consumer behavior after the COVID-19 pandemic, while the recovery of the food service business was delayed and the pace of store openings was revised. The creation of business synergies leveraging the dual-engine management model also remains incomplete, and issues became apparent in group management and the human resources foundation, the management control structure, the profitability of the food service business, and the food business's product portfolio and production efficiency. |
| Size of the Target Market | The Chinese-format food service market was ¥1,069.5 billion in 2025 and is projected to reach ¥1,191.6 billion in 2030, representing an overall CAGR of 1.8%. Source: Fuji Keizai, Gaishoku Sangyo Marketing Binran 2026. The food market comprises grilled gyoza at ¥73.5 billion in 2025 and ¥79.5 billion in 2032 (CAGR: 1.13%), boiled gyoza at ¥7.8 billion and ¥8.1 billion (CAGR: 0.63%), fried rice at ¥105.8 billion and ¥119.2 billion (CAGR: 1.72%), and shumai at ¥49.1 billion and ¥52.4 billion (CAGR: 0.93%). Source: Fuji Keizai, Shokuhin Marketing Binran 2026. The 2025 market size and growth rate for xiaolongbao and one-plate meals are estimates by the company. |
| Risks identified | Competitive risk, Rising costs for raw materials, logistics, energy and other items, Labor shortages, partly due to the suspension of acceptance of specified-skilled workers, Population decline and contraction of the domestic market due to the declining birthrate and aging population, A growing tendency to economize due to stagnant real wage growth, Diversification of eating habits, including prepared meals, delivered meals and mail-order food, An increase in the perceived price premium of eating out due to a consumption tax cut on food products, Risks related to food safety, BCP and other matters |
| Publication date | 14 October 2026 |
Items this document does not state (6)
Net income targetROIC targetTreasury share acquisition policySelf-assessment of PBR and share priceNon-financial targetsDate of board resolution
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.To establish earning power by rebuilding the management foundation and deepening the dual-engine management model, in light of delays in the recovery of the food service business and in generating synergies between the two businesses, as well as issues with group management, the human resources foundation and the management control structure that became apparent under the previous medium-term plan.
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