TOP Message

Q3 2025 (Jan–Sep) Achieved Increased Sales and Profit; Existing Store Sales up 107.8%; ROE grew to 10.3%

• Sales: JPY 339.6 billion (YoY +15.3%), Business Profit(*1): JPY 25.4 billion (YoY +31.0%), Operating Profit: JPY 23.9 billion (YoY +23.7%), Net Income: JPY 13.7 billion (YoY +31.2%)
• Existing Store Sales: YoY 107.8%
• Inflation Countermeasure: Despite a JPY 10.2 billion negative impact from inflation, business profit rose by JPY 6.0 billion year-on-year, driven by existing store sales growth and cost reduction initiatives.
• M&A Contribution: JPY 19.5 billion increase in sales, JPY 1.9 billion increase in profit (Sukesan / Malaysia SUKI-YA)
• ROE: 10.3%
    (*1) Business Profit: Amount derived from subtracting cost of sales and selling, general, and administrative expenses from revenue. An indicator of core business profitability.

Upward Revision to FY2025 Earnings Forecast and Dividend Forecast due to Strong Performance

• Sales: JPY 454.0 billion (+JPY 9.0 billion), Business Profit: JPY 31.0 billion (+JPY 3.5 billion), Operating Profit: JPY 29.0 billion (+JPY 4.0 billion), Net Income: JPY 16.7 billion (+JPY 1.9 billion)
• Annual Dividend: JPY 22.00 (+JPY 2.00)
    * Figures in parentheses indicate the increase from the initial forecast.

Existing Store Growth: "Menu & Promotion" Strategy and "Store Centered Management" Drive Traffic and Average Check → Contributed JPY 10.7 billion to Profit (YTD)

• "Cost-performance menus" and "menus enhancing dining enjoyment and experiential value" address consumer polarization. → Contributes to improved combination sales and increased average check.

• Despite increased labor hours, the labor cost ratio decreased due to a significant increase in sales, resulting in profit improvement.

Sales and Business Profit Growth Exceeds Mid-Term Business Plan Assumptions

Existing Store Growth (YTD): YoY +7.8% (Plan: Annual average 3-4%)

• New stores achieve high profitability: Sales 111% and Profit 172% compared to existing stores (*4)
    (*2) Includes 5 Sukesan Udon stores. (*3) Includes 13 M&A stores in Malaysia SUKI-YA. (*4) Applies to 29 Skylark Restaurants stores.

• Policy prioritizes investment recovery through highly selective openings in high-profit locations.
• Despite restraining the number of openings, revenue and profit are expected to achieve the initial plan.

Both M&A Subsidiaries (Sukesan & Malaysia SUKI-YA) Achieve High Revenue/High Profit; Expansion Promoted

• Demonstrates overwhelming customer drawing power, with monthly sales in new areas (Kanto / Kansai) approximately three times that of existing brands.
• Maximizing synergy effects by internalizing production and improving logistics/procurement efficiency to support future expansion.
• Plans to open 30 stores in 2026, and 50 or more stores annually from 2027 onward.

• The dining market is expanding, driven by the rising lifestyle standards of the Malay ethnic group.
• Revenue and Operating Income show YoY growth.
• Four stores are planned for opening this term. Future consideration: Expansion into Indonesia, which has a significant Muslim market.

Securing Reliable Growth in the Domestic Market

• Increased outsourcing of meals due to the rise in double-income households, coupled with an increase in dining quality and experiential consumption (*koto-shohi*). → Domestic dining demand is expected to continue expanding.

• Strengthening Brand Portfolio: The addition of Sukesan Udon complements the low-price segment. → Further growth through store expansion. New format development and M&A will also be promoted to build a portfolio covering diverse needs.
• Selective Opening in Prime Locations: New store performance in major metropolitan areas and near train stations shows high profitability. → Drive profit growth through enhanced new store openings in commercial clusters and station-front locations.
• Existing Store Enhancement: Advancing menu/promotion strategies and store centered management (Human Capital Investment) to drive further growth.
• Strengthening Business Foundation: Building a robust business foundation that can counteract the inflationary environment through company-wide productivity improvement and enhanced cost control.