[Company analysis] Yoshinoya Holdings Co., Ltd. (吉野家ホールディングス)

「Yoshinoya Holdings Co., Ltd. (吉野家ホールディングス)」is one of Japan's three major gyudon chain company(「Yoshinoya Holdings Co., Ltd(吉野家ホールディングス)」,「Matsuya Foods Company, Limited(松屋フーズホールディングス)」and「Sukiya Co., Ltd.(すき家)」). As of November 2019, the number of stores is 1,214, which exceeds the number of Matsuya(1,183 stores), but smaller than Sukiya(1,938 stores).  The number of consolidated employees is approximately 4,591.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Yoshinoya Holdings Co., Ltd.
Company name (Japanese)	吉野家ホールディングス
Date of establishment	Saturday, December 27, 1958
Headquarters location	〒103-0015 東京都中央区日本橋箱崎町36番2号
Capital	10,265
Consolidated sales	202,385
Consolidated operating profit	104
Consolidated total assets	112,685
Consolidated capital	50,025
Capital adequacy ratio	44.4%
Consolidated number of employees	4,591

 

 

 

2. Summary and Features

 
「Yoshinoya」was founded in Tokyo in 1899. Because its founder Matsuda Eikichi(松田栄吉)'s birthplace was "Yoshino(吉野)" in Osaka Prefecture, this company was named as "Yoshinoya". Then thanks to the low price strategy and fast cooking speed like fast food, it made a great success. And eventually, it became a major gudon chain company in Japan.

As for the management strategy,「Yoshinoya」has conducted a thorough concentration strategy of selling only gyudon until 2003. As a result, they were able to control the difficulty of service provision and increase service speed. Most of all, they could carry out mass purchasing, so they were able to keep costs to a minimum. This allows them to offer their services at low prices.

However, with the recent declining birthrate and aging population in Japan, the market is expected to shrink. Besides, nowadays the competition in Japanese gyudon market become very harsh. Under these circumstances, 「Yoshinoya」decided to chage corporate governance into holding company. In addition, they initiated business diversification by actively incorporating other restaurant businesses through M & A.

「Yoshinoya」is also actively expanding its business into overseas markets. In 1975, they established their first oversea store in the United States. Since then, they continued to open new stores in Taiwan and other parts of Asia. Currently, this company has 959 oversea stores. It is slightly lower number than the Japan domestic(1,211 stores).

 

 

 

3. Major Business

 

■ Yoshinoya business

■ Hanamaru business

■ Ark meal business

■ Kyotaru business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		188,623	198,503	202,385
Consolidated operating profit		1,865	4,019	104
Consolidated total assets		114,947	115,613	112,685
Consolidated net assets		57,209	57,807	50,025
Breakdown of sales	Yoshinoya business	96,301	100,081	102,635
	Hanamaru business	23,619	26,803	28,762
	Ark meal business	22,947	22,416	20,172
	Kyotaru business	25,526	26,528	27,169
	Oversea business	16,606	19,734	21,162
	Others	3,621	2,938	2,482