Ichibanya Co., Ltd. operates and franchises curry specialty restaurants in Japan and internationally. It runs directly managed and franchised locations under the CURRY HOUSE CoCo ICHIBANYA and Pasta de CoCo brands. The company also provides store management guidance and licenses its trademarks to food manufacturers. Founded in 1978 and headquartered in Ichinomiya, Japan, it is a subsidiary of House Foods Group Inc.
House Foods Group Reports 185.3% Jump in Q1 Net Profit; Full-Year Operating Profit Forecast Cut Only for Spice and Seasoning Business
House Foods Group reported on August 4 its first-quarter results for the fiscal year ending March 2027, with net sales of 75.139 billion yen (down 0.7% year on year), operating profit of 4.001 billion yen (up 17.1%), ordinary profit of 4.494 billion yen (up 22.6%), and quarterly net profit of 5.136 billion yen (up 185.3%). The sharp rise in net profit was a one-off factor stemming from a gain on the sale of investment securities, while the decline in net sales reflected the transfer of the prepared food subsidiary Delica Chef in the fourth quarter of the previous fiscal year. The spice and seasoning business, the largest of the five business segments in both net sales and operating profit, performed strongly with net sales of 31.327 billion yen (up 5.3%) and operating profit of 1.630 billion yen (up 39.7%). Meanwhile, the restaurant business, centered on Ichibanya, which operates Curry House CoCo Ichibanya, posted net sales of 16.972 billion yen (up 7.8%) but operating profit of 752 million yen (down 19.3%), a decline in profit. The company revised its full-year forecast for the fiscal year ending March 2027, citing higher costs due to the situation in the Middle East. It left net sales unchanged at 322.5 billion yen, but cut its operating profit forecast to 17.5 billion yen, down 5.4% from the previous 18.5 billion yen, and its ordinary profit forecast to 18.7 billion yen, down 5.1% from the previous 19.7 billion yen, while keeping its net profit forecast at 17 billion yen. The downward revision was concentrated in the spice and seasoning business, whose operating profit forecast was lowered to 11.4 billion yen, down 8.1% from the previous 12.4 billion yen, with forecasts for the other four segments left unchanged.
2810.JP · Capital · Neutral Q1 net profit jumped 185.3% on a one-off securities sale gain, but full-year operating profit forecast was cut on Middle East cost pressures.
7630.JP · Capital · Negative Restaurant business centered on Ichibanya saw operating profit fall 19.3% despite higher net sales.
Ichibanya's Q1 for Fiscal Year Ending February 2027 Sees 14.3% Operating Profit Decline, Full-Year Forecast Unchanged
Ichibanya's first-quarter results for the fiscal year ending February 2027 showed revenue up 7.8% year on year to 16.9 billion yen, while operating profit fell 14.3% to 1 billion yen, ordinary profit dropped 15.8%, and net profit declined 21.1%, with the profit decline widening further down the income statement. According to the company, the revenue increase was mainly due to business expansion at overseas and domestic subsidiaries, while on the profit side it was hit by rising procurement prices for ingredients including rice and higher logistics costs. There is no change to the earnings forecasts for the first half and full year of the fiscal year ending February 2027; the full-year operating profit forecast stands at 5 billion yen, and the first-quarter progress rate of 21.7% falls short of the straight-line pace of 25%. Revenue grew 45% over four fiscal years, from 45 billion yen in the fiscal year ended February 2022 to 65.5 billion yen in the fiscal year ended February 2026, but operating profit stalled at 4.7 billion yen in both the fiscal years ended February 2024 and February 2026, and the operating profit margin also declined for two consecutive fiscal years, from a peak of 8.6% to 8.1% and then 7.2%. As of September 11, the PER was 63.97 times and the PBR was 5.47 times, and a multiple of more than 60 times against the company's forecast EPS of 17.04 yen is a level that cannot be explained by single-digit profit growth this fiscal year.
House Foods to Sell Ichibanya, Nihon Gas Announces Stock Split and Dividend Increase
On August 31, the Nikkei average on the Tokyo stock market fell, dropping more than 1,500 points at one point due to hawkish comments from the U.S., but it showed signs of recovering. Among the stocks in focus, House Foods Group announced that it is considering selling its subsidiary Ichibanya, and Ichibanya shares surged on expectations of a takeover premium. Additionally, Nifco announced a share buyback of up to 8.3 million shares, equivalent to 8.88% of its total issued shares, for up to 40 billion yen, and its stock price rose. Nihon Gas announced a 1-for-3 stock split and an increase in its year-end dividend, attracting investor interest.
House Foods Considers Selling CoCo Ichibanya, Shares Jump 16%
House Foods Group, the owner of Japan's largest curry chain CoCo Ichibanya, is considering selling the business, including the option of taking the company private, causing shares of Ichibanya Co. to surge 16% in trading on the Tokyo Stock Exchange. House Foods holds a 51% stake in Ichibanya, which had a market value of approximately 174.2 billion yen, or about $1.1 billion, as of Monday. Both companies confirmed a Nikkei report and stated they are considering various options, including going private. Analyst Tsutomu Yamada of Mitsubishi UFJ eSmart Securities said that a change in major shareholders could be a good opportunity for growth and expects the stock price could rise another 30% if the sale materializes. CoCo Ichibanya has nearly 1,500 stores both in Japan and overseas, including the U.S., the U.K., and India.
7630.JP · Capital · Positive Shares surged 16% as parent House Foods considers selling the chain, with an analyst expecting further upside if a sale materializes.
2810.JP · Capital · Neutral House Foods is considering selling its 51% stake in CoCo Ichibanya, including taking it private, a potential M&A/divestiture event.
CoCo Ichibanya to Introduce Late-Night Surcharge from September, Adding 7%
Ichibanya, which operates Curry House CoCo Ichibanya, announced on the 28th that it will introduce a late-night surcharge at its stores nationwide starting September 1st. A 7% surcharge will be added to the price of dine-in and takeout items, while delivery orders are excluded. This is in response to rising costs of raw materials and labor, and will apply during the hours of 10 p.m. to 5 a.m. For example, the standard "Pork Curry" will see its dine-in price rise from 646 yen to 691 yen. Additionally, some topping items will see an average price increase of 17% from the same date, affecting 12 items including "Soft-Boiled Egg" and "Chicken Cutlet," with adjustments ranging from 11 to 60 yen.
Japan