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Yoshinoya Holdings Co has cut its annual net profit forecast by 98% due mainly to losses related to the withdrawal from slumping family restaurant business. The "gyudon" beef bowl restaurant operator lowered its group net profit forecast for the year to February to 50 million yen from 2.5 billion yen.
The company's takeout sushi chain unit, Kyotaru Co, plans to close 23 restaurants by the end of November as soaring gas prices and weaker consumption made many stores located in suburban areas unprofitable.
Another factor behind the downward revision was asset impairment losses involving Yoshinoya's R-1 Co "ramen" noodles unit.
The company also reduced its operating profit forecast by 28.2% to 5.1 billion yen and its recurring profit estimate by 26.3% to 5.6 billion yen.
Yoshinoya raised its sales forecast by 3.2% to 180 billion yen thanks to the addition of steak restaurant operator Don Co.
For the first half ended August, Yoshinoya now forecasts a net loss of 211 million yen, compared with a net profit of 800 million yen in its previous forecast.
© JCN
15 Comments
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norinrad21
I've been a fan of matsuya for a while. Saves me a lot of money too
Good_Jorb
If by family, you mean Yoshinoya and it's subsidaries (as that is all the article refers to) then yes thier business is slumping but it could just be becuase of poor management or a bad business plan. Reading and comprehending are two different things.
Glass half-empty type of guy? If Japan goes down the toilet, what will happen to the jaded English teachers and burnt out no talent ex-pats? No more easy meal tickets but perhaps increased sales for Yoskinoya type restuarants.
chibaman
I feel it is of the utmost importance to add that it's not the cheap piece of crap beefbowl or porkball or fatgristleball places that are doing poorly, the salaryman loves that crap as he does Sukiya and Matsuya, but if you read the article before posting you'll see it's related to the slumping family restaurant business, and actually all the other factors that are written right there for you in the article. In short, it says Japan is going down the toilet. I'm readying my golden parachute before it turns brown.
Dogdog
Yoshinoya's strength in the market was based on it being the first to offer cheap beefball to Japanese, nothing else. Sukiya's beefball is miles better.
Yoshinoya messed up big time when instead of transferring to Aussie beef during the US beef ban, they took beefball of the menu. Salarymen, who are such creatures of habit, didn't take to the porkball or yakiniku substitutes and moved over to Sukiya, and soon realized themselves that Sukiya was a better quality beefball and when beefball came back on to Yoshinoya's menu, their old customers didn't return.
The only way is down for Yoshinoya noow unless they try to move into the healthy brand menu before the others start.
Otaru
Yoshinoya is definitely oversaturated in an oversaturated market. Too many stores offering the same product.
thepro
Yeah, Yoshinoya is the lamest of all the cheap 24 hour food places
nath
Sukiya is better than Yoshinoya anyway.
some14some
Definitely very good at maths, Yoshinoya's forecast must have helped them in getting huge loans from the J-Banks. And now Bank shares are tumbling.
serindipity
Here comes the recession/depression! Cash in your Super and stuff it into your pillow case.
noborito
Someone's forecast was way off. I hope someone was fired for such a huge mistake in forecasting. (And I thought Japanese people where supposed to be good at math.)
rjd_jr
I can't believe Yoshinoya's even been in business this long. The "meat" they use is worse grade than that served in many penal institutions, more gristle and fat than actual meat. It's more like gristle and sauce over rice.
soldave
That's a hell of a drop. World markets are in turmoil at the moment.
some14some
May be Yoshinoya's business was affected by import ban on US beef(?)
chibaman
Sinking ship. Japan, that is.