Sustainable Earnings Growth Through the Medium-Term Management Plan

「CREATE RESTAURANTS HOLDINGS INC.<3387> transfers all shares of its subsidiary 香港創造餐飲管理 to a local company」

「Based on the three pillars of growth under its medium-term management plan, “evolving intrinsic value,” “synergy-driven M&A” and “expanding overseas operations,” the Group steadily pursued each initiative and focused mainly on the following activities during the second quarter of the current consolidated fiscal year.」

「Our group has designated the fiscal year ending February 2027 as the “phase of returning to the growth trajectory” under the medium-term management plan, while further deepening group federation management and transitioning to a new management structure aimed at sustainably increasing corporate value.」

「Against this operating backdrop, in the second quarter of the current consolidated fiscal year, our group implemented the following initiatives primarily in line with the 3 growth pillars set out in the medium-term management plan for the current fiscal year, disclosed on 14 April 2025—“evolving intrinsic value,” “synergistic M&A,” and “expanding overseas operations”—and the 3 foundations supporting them: “leveraging technology,” “advancing human-capital management,” and “promoting sustainability.”」

「To sustain and further develop this growth, in April 2025 we formulated a 5-year medium-term management plan beginning with the fiscal year ending February 2026. Based on our recognition of changes in the external environment, including Japan's declining population, diversification of employment, rising costs across the board, inflation, and the growing importance of sustainability, as well as the challenge of fundamentally intensifying competition following the end of post-COVID revenge spending, the plan aims to resolve fundamental issues.」

「As part of the initiative to review the portfolio with a view to the post-COVID era, one of the pillars of our growth strategy, we acquired from Wildflower Bread Company LLC the bakery-restaurant business operating the “Wildflower” brand in the United States, effective 3 September 2024. In addition, we decided to make 株式会社一幻フードカンパニー, which operates “えびそば一幻,” a leading ramen restaurant in Sapporo, Hokkaido, a consolidated subsidiary effective 1 October 2024.」

「As progress under this medium-term management plan, in the fiscal year ending February 2023, designated as the first year of the re-growth phase, we consolidated the foundations of the 3 growth-strategy pillars and maintained and strengthened the lean cost structure developed through responding to change during the COVID-19 pandemic, achieving profitability even after excluding cooperation payments for preventing the spread of infection, including payments related to reduced operating hours. In the fiscal year ending February 2024, the second year, we worked to further improve the quality of existing locations by responding to changes in customer-attracting locations prompted by the pandemic. We also strengthened concepts, specialization, and appropriate pricing, while resuming investment aimed at shifting from “defense” to “offense,” including new openings of core brands, strategic refurbishments and renovations, and increased investment in digital transformation, with the goal of improving both quality and scale.」

「We decided to pursue sustainable profit growth by making maximum use of our group's strength, the ability to respond to change. Specifically, during the next 3 years covered by the medium-term management plan, we will focus on 3 pillars of our growth strategy: ① reviewing the portfolio with a view to the post-COVID era, ② further evolving group federation management by rebalancing centripetal and centrifugal forces within the group, and ③ improving productivity and addressing labor shortages through digital transformation.」