Improving the Profitability of the Existing Business

「As a result of these initiatives, same-store sales for the company as a whole increased 6.2% year on year.」

「Key product initiatives included selling items such as Oyako-don and Karaage Oyako-don, Beef Plate with Beef Tongue and Barley Rice with Grated Yam Set, Beef and Egg Spicy Mixed Noodles, and Thick-Cut Braised Pork Set Meal. Key sales initiatives included campaigns such as the Morning Activity Coupon, the 2 Gyudon Bento for ¥800 Campaign, the Tomorrow's Special Coupon, the Children's Discount, and the Topping Festival. As a result of these initiatives, company-wide same-store sales increased 7.5% year on year.」

「The group has achieved a structural transformation in earnings by taking advantage of the pandemic, but continued to strengthen expense controls, repay borrowings to restore financial soundness, and manage funds efficiently. At the same time, these internal efforts alone could not absorb all cost increases, so the group responded flexibly and appropriately by revising product prices across its businesses.」

「Both 吉野家 and はなまる held product and customer-service contests to strengthen service capabilities, focusing not only on the value of the food itself but also on improving the value of the dining environment. We are also actively systematizing store operations, including by introducing credit card terminals at 吉野家 and はなまる. As a result of these initiatives, company-wide same-store sales increased 5.5% year on year.」

「As a result of these initiatives, company-wide same-store sales increased 4.9% year on year in the first quarter of the current consolidated cumulative period. By business, 吉野家 increased 5.5%, はなまる increased 9.4%, and overseas operations decreased 2.7% on a local-currency basis. To address the recent surge in raw material prices, we are also reviewing the product lineup, coupons, and other sales promotion measures. In response to higher labor costs, we are working to control labor expenses by improving store operating productivity and to increase the efficiency of head-office operations.」

「Despite rising costs, particularly raw material costs, segment profit increased to ¥5.871 billion, up 35.3% year on year, through flexible measures such as price revisions for core products in October, together with revenue growth and appropriate expense controls.」

「Although affected by higher raw material and utility costs, revenue growth and appropriate expense controls resulted in segment profit of ¥3.513 billion, up 36.2% year on year.」

「Although affected by higher raw material and utility costs, appropriate expense controls and revenue growth resulted in segment profit of ¥1.573 billion, up 6.0% year on year.」

「The group has achieved a structural transformation enabling it to generate profit at revenue equivalent to 90% of that in the fiscal year ended February 2020. In response to unprecedented cost increases, it continued to strengthen expense controls, repay borrowings to restore financial soundness, and manage funds efficiently.」

「Costs remain subject to extreme uncertainty due to soaring raw material prices, including beef, and higher utility costs, as well as geopolitical risks and the continuing depreciation of the yen. We continue to work to reduce food waste and strengthen expense controls. Although revenue was substantially higher than in the previous year, the segment loss was ¥166 million, affected by higher raw material and utility costs, compared with a loss of ¥942 million in the same period of the previous year.」

「Higher revenue well above the previous year and improved store productivity under the policy theme of decluttering resulted in segment profit of ¥115 million, compared with a segment loss of ¥572 million in the same period of the previous year.」

「Costs remain subject to extreme uncertainty due to soaring raw material prices, including beef, and higher utility costs, as well as geopolitical risks and the continuing depreciation of the yen. We nevertheless continue to work to reduce food waste and strengthen expense controls.」

「Although the declaration and extension of the state of emergency, as well as the application of priority preventive measures, had a significant impact on customer traffic, operating profit and loss improved by ¥7.7 billion through cost reductions implemented since the previous fiscal year, improved gross profit from sales price revisions, and lower selling, general and administrative expenses, resulting in a return to profitability.」

「Although the declaration and extension of the state of emergency had a significant impact on customer traffic, operating profit and loss improved by ¥6.732 billion year on year and turned positive through cost reductions implemented since the previous fiscal year, improved gross profit from sales price revisions, and lower selling, general and administrative expenses.」

「Although the state of emergency had a significant impact on customer traffic, operating profit and loss improved by ¥6.693 billion year on year through cost reductions implemented since the previous fiscal year and lower costs and selling, general and administrative expenses, resulting in a return to profitability.」

「Although the state of emergency had a significant impact on customer traffic, operating profit and loss improved by ¥4.748 billion from the same period of the previous year as a result of cost reductions implemented since the previous fiscal year, as well as lower costs and selling, general and administrative expenses. Operating loss was nevertheless recorded.」

「We set out to build a structure capable of generating profit at 90% of consolidated revenue in the fiscal year ended February 2020. As a result of acting with a sense of urgency, we strengthened the structure through approximately ¥7.0 billion in cost reductions in the fiscal year ending February 2021.」

「On the cost side, in addition to negotiating rent reductions and cutting controllable expenses, we are pursuing structural reforms across the group to reduce costs. The results are steadily emerging, and operating profit turned positive in the third quarter of the current consolidated fiscal year.」

「On the cost side, in addition to negotiating rent reductions and cutting controllable expenses, we are pursuing structural reforms across the group to reduce costs.」

「On the cost side, the group implemented cost-reduction initiatives across the group, including reducing discretionary expense spending and negotiating rent reductions for temporarily closed stores.」

「As a result of these initiatives, sales at existing stores remained firm, and the segment loss narrowed by ¥258 million from the same period of the previous year to ¥482 million.」

「To recover customer numbers at existing stores, as a sales initiative we distributed Lunch-Time Passes and Step-Up Coupons in addition to offering products at special prices on Meat Day, encouraging repeat visits. In April, ステーキのどん also held a collaborative campaign with the film Crayon Shin-chan. As a product initiative, ステーキのどん introduced the generously sized Geki-Atsu Steak in July, which was well received. しゃぶしゃぶどん亭 and フォルクス also revised their lunch menus and offered seasonal fair menus. As a result of these initiatives, sales at existing stores remained firm, and the segment loss narrowed by ¥103 million from the same period of the previous year to ¥239 million.」

「As in the previous fiscal year, the operating environment remains challenging, with rising food ingredient prices, particularly rice, and higher labor expenses due to increases in hourly wages for part-time employees. However, the effect of higher revenue exceeded the increase in costs, resulting in higher profit.」

「Although achievement of these targets will be postponed, we have set the following as mandatory targets for the fiscal year ending February 2020: consolidated revenue of ¥208.0 billion, consolidated operating profit of ¥1.0 billion, and net income attributable to owners of the parent of ¥100 million. We will make the fiscal year a year of foundation-building aimed at restoring business performance.」

「As a measure to recover customer numbers, in September, ステーキのどん increased the portion of its daily hamburger special by 30% at the same price, enhancing its value proposition. In November, the monthly Meat Day event was changed from being held on the 2nd and 9th of each month to a four-day weekend event including the 29th, making it easier for families to visit. In response to customers' desire to eat as much delicious steak as they wanted, ステーキのどん introduced a new beef product for its aged rib loin steak, while フォルクス did so for its sirloin steak, and both brands ran portion-increase campaigns.」

「With respect to costs and expenses, we will optimize the number of raw material items handled and reduce waste by making inventory management easier. In addition, to continue optimizing working hours, we will replace the POS registers at all 吉野家 stores and introduce barcode scanners and automatic change dispensers.」

「Although the operating environment remains challenging, we will attract customers by actively introducing high-value-added products and seasonal items. We will also improve labor productivity and restore profitability by providing employees with a comfortable working environment, improving staffing and retention rates, and operating with appropriate working hours.」

「Operating profit for the consolidated fiscal year increased by ¥2.153 billion year on year to ¥4.019 billion, as higher revenue and improved cost of sales more than offset a slight increase in selling, general and administrative expenses. Although cost of sales increased by ¥1.204 billion from the previous year, lower prices for the main raw material, beef, reduced the cost ratio by 1.2 percentage points to 35.1%.」

「We will continue to promote sales and develop products that improve customer satisfaction, while working to recover customer numbers. Segment profit increased to ¥112 million, up ¥211 million from the same period of the previous year, as costs and labor expenses were optimized through the reorganization of the sales organization to strengthen management capabilities.」

「As measures to recover customer traffic in existing formats, the Group expanded its “Meat Day,” previously held on the 29th of each month, to two days, the 2nd and 9th. To acquire new customers, it also held “All-You-Can-Eat Steak” campaigns at Volks and Steak no Don in June and August. In addition, it expanded the Plus One menus for each format, introducing the “Ribloin Stamp Card” at Steak no Don and daily and weekly rotating menus for the “Holiday Lunch” at Shabu-shabu Dontei.」

「Revenue declined due in part to lower customer traffic at Dontei as competition intensified in the shabu-shabu format. Meanwhile, the Group optimized costs and personnel expenses by reorganizing its sales organization to strengthen management capabilities, resulting in segment profit of ¥68 million, up 79.3% year on year.」

「Cost of sales decreased by ¥2.520 billion from the previous year to ¥[?] billion due to lower prices for beef, the main raw material, and the cost ratio improved by 1.9 percentage points to 36.3%. Selling, general and administrative expenses, meanwhile, increased by ¥5.154 billion from the previous year to ¥118.371 billion, mainly due to higher personnel expenses and higher facilities and equipment costs resulting from active store openings.」

「The main factors behind the increase in revenue were the relaunch of the “Pork Bowl” in April, the expansion of “Yoshinomi” stores in May, and the “Super Friday” campaign in October, its first major collaboration initiative, which attracted many customers who had not previously had an opportunity to visit. In November, the Group also received a favorable response to the winter staple “Beef Sukiyaki Hotpot Set,” which provides half a day’s recommended vegetable intake, and five regional “Local Hotpots” offered as regional menu items reflecting local characteristics.」

「During the current fiscal year, the Group will first work to improve the profitability of its existing businesses by developing new products, improving store operations, and introducing new marketing methods in each segment.」

「During the current fiscal year, the Group will first work to improve the profitability of its existing businesses by developing new products, improving store operations, and introducing new marketing methods in each segment.」