Medium-term Management Plan

Mid-Term Plan Theme

『Transformation』 & 『Growth』 ~ Continuous Evolution with Founding Spirit ~
~ “Your Smile, Our Value” ~

Key Strategic:『Transformation』

  • Inorganic Growth investment
  • IT & Digital Infrastructure Enhancement
  • Store Network Expansion
  • Seamless Management between corporate and Brands

2025-2029 Strategic Roadmap

Foundation, Structural Reform & Pandemic Countermeasures | 『Evolution』&『Revitalization』, Previous Mid Term Plan | 『Transformation』&『Growth』, New Mid-Term Plan
    • Profitability Restoration
    • Portfolio Optimization
    • Break Even Optimization
    • Crisis Driven Financing
    Revenue 153.6
    Operation
    Profit    		 2.3
    • Profitability Enhancement
    • C&C Model Renovation Yoshinoya
    • Hanamaru Recovery
    • Ramen M&A Expansion
    • Financial Base Reinforcement
    Revenue 204.9
    Operation
    Profit    		 7.3
    • Profitability Maximization
    • Growth Investment
    • Ramen Business Acceleration
    • Business Portfolio Expansion
    • Digital Investment Acceleration
    Revenue 300.0
    Operation
    Profit    		 15.0

2025-2029 Core Elements of the Mid-Term Plan

Mid-Term Plan ~『Transformation』 & 『Growth』~

Strategy Direction
“The Transformation of Existing Businesses” & “The Growth of New Business Drivers”
Financial Target
FY2029: ROIC 7.0% D/E Ratio 0.9x
3 Strategic Pillars
  • Strengthen
    Domestic
    Business Model Evolution & Creation of New Value
  • Accelerate
    Ramen
    Establishing Another Core Business Segment
  • Expand
    Overseas
    Optimizing Existing Areas & Entering New Markets
Key Strategic Areas for Execution
  • Inorganic Investment
  • Human Capital Development
  • IT Investment & Infrastructure Enhancement
  • Sustainability Initiatives Enhancement
  • Group Function Synchronization
  • Social Value
    Enhancement
  • Economic Value
    Enhancement

2029 Performance Indicators

Enhancing Profitability
  • Revenue 300.0 billion yen
  • Operation Profit 15.0 billion yen
Improving Capital Efficiency ROIC 7.0%
Maintaining Financial Stability D/E Ratio ≤ 0.9x
Establishing New Growth Drivers Ramen Revenue 40.0 billion yen

Business Strategy Overview

Yoshinoya

Revitalize
  • Customer Traffic Growth
  • 「Tasty, Affordable, Fast」
Expand
  • 「Convenience Focused」
    ・900 Store Model Upgrades
    ・1,300 Flyer Installs
    ・1,400 Tablet Installs
  • 350 New Store Openings
    New Service Model Stores + Takeout Delivery Format
Challenge
  • Newly Developed Brands
  • Multi Brand Expansion
  • Packaged Product Growth
  • Labor Efficiency Gains
FY2024 Revenue:137.8 billion yen, Store Count:1,259 Stores | FY2027 Revenue:170.0 billion yen, Store Count:1,400 Stores | FY2029 Revenue: 188.0 billion yen, Store Count 1,500 Stores

Detailed Initiatives

New Service Model Stores
Fried Chicken Product Line
Newly Developed Brands
  • Karubi no Toriko
    • Specialty brand for 『Beef Kalbi Rice Bowl』『Korean-style Tofu Stew』
  • Deikara
    • Specialty brand for 『Crispy Fried Chicken』『Handmade Rice Balls (Onigiri)』
  • Moo~Toriko
    • Specialty brand for 『Beef Curry』

Packaged Product Sales

14,000 Store Distribution by 2029 (150% vs. 2025)
  1. Shelf Stable Market Expansion

    Customer Segment Expansion Beyond Frozen

  2. Group Brand Commercialization

    Brand Value Enhancement via EC
    Customer Touchpoint Expansion via Supermarkets

Hanamaru

Transformation & Growth Initiatives

Revitalize
  • Location Based Sales Strategy
  • Store Visit Maximization
  • Data Driven Products & Promotions
Expand
  • Urban Expansion
  • Top 3 Urban Market Store Expansion
  • New Format Development (Kishimen & Bistro)
Challenge
  • Multi Format Brand Innovation
  • Japanese Noodle Format Development (Soba, Somen)
  • Compact Store Format Deployment
  • Hiring Channel Diversification
  • Digital Integration for Labor Efficiency
FY2024 Revenue:30.9 billion JPY, Store Count:415 Stores | FY2027 Revenue:40.0 billion JPY, Store Count:500 Stores | FY2029 Revenue: 48.0 billion JPY, Store Count 600 Stores

New Value in Existing Business

  • Location Based Sales Strategy
    ・Suburban Area...Relaxed Comfort → Sophisticated Renovations Made-to-Order Satisfaction
    ・Office District...Everyday Vibes → Value Focused Menu
    ・Food Court...Menu Optimization
  • Data Driven Product Development & Promotion

Store Expansion Strategy

  • Top 3 Urban Markets Expansion
  • Kishimen Concept: ZZZ Brand Expansion from Hoshigaoka Noodle Factory
  • Western Style Izakaya Expansion
  • Japanese Noodle Fusion

Strengthen Growth Foundation

  • Hiring Channels Diversification: Overseas Japanese School Partnerships, High School Graduate Hiring Reinforcement, Senior Talent Utilization
  • System Development: Overseas Training Center Launch, Udon School, Kids’ Cafeteria Activities

Overseas

Expansion Initiatives

Key Overseas Strategies
  • Product: Japanese Items, Localization
  • Pricing: Regional Pricing, Competitive Edge
  • Sales: Store Model Customization
  • Promotion: Area Specific SNS Usage
  • Franchise: Local Partner Collaboration
Mid-Term Initiatives
Revitalize
  • U.S.: Commissary led cost & quality upgrade
  • Taiwan: Profit model shift & format change
Expand
  • Localized beef bowl based product development
  • China, Hong Kong:Joint procurement through franchise collaboration
  • U.S.: Expansion in California and neighboring states
  • Singapore: Traffic enhancement via Halal recognition
  • Indonesia: Store expansion through franchise model
Challenge
  • Market entry strategy for regional dominance
  • Global deployment of successful domestic models

Overseas (Yoshinoya)

  • Revenue
    2024 27.88 billion yen, 2027 29.0 billion yen, 2029 31.0 billion yen

    Apply proven domestic formats abroad to create successful international models

  • Store Count
    2024 998 Stores, 2027 1,070 Stores, 2029 1,120 Stores

    Actively open stores in promising areas such as Mainland China and Southeast Asia

Ramen

Ramen Business Strategy: Targeting Global No.1 in Ramen Dining

  • Ramen as the Third Business Pillar
  • Brand Expansion & Strategic M&A Execution
  • Global Demand Capture via In House Manufacturing & R&D (Takara Sangyo)
FY2024 FY2025 - FY2029 FY2034
Ramen Dining
  • Regional Dominance Strategy
  • Domestic Brands Expansion
  • New Brand Development
  • Global Franchise Expansion
  • Takara Sangyo Product Utilization
  • Human Resource Synergy

FY2029
Revenue JPY 40.0 Billion
Store Count 500Stores

Global No.1 in Ramen Dining
Manufacturing
  • Global Production Capacity Enhancement
  • International Halal-Certified Operations
  • European Production Site Expansion
  • Sales Resource Enhancement
Inorganic Growth
  • Domestic Regional M&A Strategy
  • International M&A Strategy
Revitalize
  • Location Based Sales Strategy
  • Store Visit Maximization
  • Domestic Brand Expansion
  • Talent Synergy Enhancement
Expand
  • Global Franchise Expansion
  • Takara Sangyo Product Utilization
  • Global Production site Enhancement
  • Takara Sangyo Sales Force Expansion
  • International Halal-Certified Operations
Challenge
  • Domestic Regional M&A Strategy
  • International M&A Strategy
  • New Brand Development
  • Workforce Optimization via Technology

Business Portfolio Transition

Segment Base Sales Contribution Breakdown

FY2021 Yoshinoya 69% | FY2024 Yoshinoya 67%, Ramen 4% | FY2029 Yoshinoya 61%、Ramen 13%

Segment-Based Target

Revenue CAGR:7.9% FY2024 204.9 billion yen、FY2029 300.0 billion yen (+95.1 billion yen)
Segment FY2024
Performance
(billion yen)		 FY2027
Target
(billion yen)		 FY2029
Target
(billion yen)		 CAGR
(%)
Yoshinoya 137.8 170.0 188.0 6.4
Hanamaru 30.9 40.0 48.0 9.2
Overseas 27.8 29.0 31.0 2.2
Ramen 8.0 17.0 40.0 38.0
Operation Profit CAGR:15.4% FY2024 7.3 billion yen, FY2029 15.0 billion yen (+7.7 billion yen)
Segment FY2024
Performance
(billion yen)		 FY2027
Target
(billion yen)		 FY2029
Target
(billion yen)		 CAGR
(%)
Yoshinoya 7.8 10.0 12.1 9.2
Hanamaru 2.0 3.0 4.2 16.0
Overseas 1.2 1.7 2.5 15.8
Ramen 0.4 1.3 4.0 58.5
Adjustment △4.1 △6.0 △7.8 -

Financial Strategy

CAPEX Policy & Plan

Enhance corporate value by maintain financial discipline and improve investment efficiency, while investing in brand evolution and expanding the business portfolio through proactive inorganic growth.

CAPEX Categories 5-Year Investment
(billion yen)		 Key Investment Areas
Existing Business
Foundation		 5.0
  • Store & Facility Upgrades
5.0
  • Infrastructure & Security Reinforcement
Existing Business
Growth		 45.0
  • New Store & Format Investment (Incl. Ramen)
20.0
  • Renovation Investment
  • Yoshinoya C&C & Hanamaru Suburban Formats
5.0
  • Ramen Production Capacity Investment
10.0
  • Digital & IT Investment
  • Convenience, Automation & Future Oriented Investment
Inorganic 40.0
  • Ramen M&A Investment (Domestic & Global)
  • Other M&A and Strategic Alliances
5-Year Investment Plan 130.0

Cash Allocation Strategy

~Turning Cash Into Growth and Shareholder Value~

ROIC Improvement Initiatives

Maximizing Capital Efficiency through Stable Cash Generation

  • Strengthening Cash Generation from Core Businesses
  • Optimizing Capital Allocation to Improve ROIC
  • FY2029 Target ROIC 7.0%

ROIC Improvement
ROIC (Return on Invested Capital) > WACC

  • Revenue Expansion via Strategic Investments

    • Growth Investment
    • QHA Driven Marketing Strategy
    • HQ Cost Structure Optimization
    • PDCA Acceleration for ROI Optimization

  • Capital Efficiency Improvement

    • Debt Equity Balance Management
    • Liquidity Cycle Optimization
    • Shareholder Return Enhancement

Group-Wide Management Approach

  • Horizontal Best Practice Integration
  • Profitability Risk Response Framework
  • Group-Level Optimization Over Silo Thinking
  • ROI-Based M&A and Post Merger Integration

Human Capital Management Initiatives

Human Capital Management - Building a Workplace for Lifelong Commitment

Building Pride in Belonging for Employees and Their Families

  1. Employee Loyalty Enhancement

    Organizational Culture Reform: Developing Systems and Policies to Support Flexible and Diverse Workstyles
    • Workplace Enhancement
    • Engagement Survey Integration
    • DE&I Program Implementation
    • Employee Wellness Initiatives

  2. Human Capital Resilience Reinforcement

    Employer Branding Enhancement: Building Strategic Recruitment Systems to Secure Growth Oriented Talent
    • Recruitment Media Optimization
    • Diversified Recruitment Channels
    • Compensation Optimization
    • Hiring Process Optimization

  3. Market Competitive Talent Development

    Human Resource Data Utilization: Redesigning Group Wide Education and Career Path Systems to Continuously Develop Sustainable Leadership Talent
    • HR System Modernization
    • Talent Data Analytics
    • Tiered Training Redesign
    • Cross-Group Talent Mobility
    • External Secondment Programs
To Human Capital Management Page

IT & Digital Strategy

Data-Driven Transformation (¥15 Billion IT Strategy for Group Wide Innovation)

Enhancing Service, Quality, and Efficiency to Strengthen Group Competitiveness and Loyalty

System Modernization

UX Enhancement

Information Visibility
  • Real Time Access to Critical Data
  • Fast Information Delivery
    (Stock Optimization / Waste Reduction)

EX Enhancement

Operational Automation
  • Order & Forecast Automation
  • SNS and AI Response Infrastructure

Supply Chain Optimization

Sustainability Initiatives

Sustainability Driven Competitive Advantage

  • ESG Integration for Market Advantage
  • Non-Financial Value Integration into Business Strategy
Non Financial Value Integration into Business Strategy [Human Capital Diversity] [Food-Driven Wellness] [Community Empowerment] [Sustainable Supply Chains] [Climate Resilience] | ESG Integration [Talent Development] [Women’s Empowerment] [Employee Wellness] [Food Safety] [Functional Food] [Child Meal Program] [Disaster Response] [Supplier Monitoring] [Food Waste Reduction] [Waste Recycling] | Competitive Impact [Future-Oriented Operations] [Inclusive Branding] [Safety Assurance] [Universal Food Access] [Regional Revitalization] [Job Creation] [Sustainable Supply Chains] [Green Profitability]
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