BUFFALO CO.,LTD. (3352) Stock Price

Market cap
¥3.9B
P/E ratio
10.5x
Buffalo operates automotive service franchises through Autobacs stores selling car parts and providing maintenance, plus food service locations under Yakiniku Like and PISOLA brands.

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Business Overview

Buffalo operates two main business segments: the Autobacs business and the food service business. In the Autobacs business, Buffalo operates as a franchisee of Autobacs Seven, providing sales and installation services for automotive products including tires, wheels, car electronics, oil, and batteries. The company also offers vehicle inspections, maintenance services, vehicle purchase and sales, and acts as an insurance agent for automobile insurance.

In the food service business, Buffalo Food Service, a consolidated subsidiary of Buffalo, operates as a franchisee of Yakiniku Like and PISOLA, providing food service operations. Through these operations, Buffalo has established a structure capable of meeting diverse customer needs.

Buffalo's subsidiary Fiberwork is excluded from the scope of consolidation due to its immaterial impact on Buffalo's operating results and financial condition. This approach allows Buffalo to maintain efficient operations.

Management Policy

Buffalo is pursuing a growth strategy centered on its Autobacs business and food service operations. In the Autobacs business, the company aims to enhance customer satisfaction through personalized sales service and build a loyal customer base. Additionally, Buffalo is strengthening competitiveness by expanding pit services and developing original products. In food service, operating as a franchisee for Yakiniku Like and PISOLA, Buffalo manages stores that respond to diverse customer needs.

Buffalo has formulated a medium-term management plan from 2025 to 2029, targeting expansion of the Autobacs business and full-scale development of food service operations. Specifically, the Autobacs business aims to become the regional leader based on customer service and technical expertise, while the food service business seeks to create new corporate value. Through these initiatives, Buffalo aims to adapt to rapidly changing business environments and achieve sustainable growth.

The medium-term management plan targets a 45.3% increase in sales revenue and a 117.6% increase in operating profit. The Autobacs business will strengthen pit services and tire sales, while the food service business will expand through new store openings. Buffalo also aims to improve customer satisfaction through enhanced customer service and human resource development. These efforts will increase competitiveness and drive business expansion.

Buffalo practices management with awareness of capital costs and stock price, targeting sustainable growth. Through expanding Autobacs store locations and establishing the food service business, the company will build new business pillars and return value to shareholders. Buffalo will leverage retained earnings and interest-bearing debt to provide returns aligned with business growth, thereby enhancing corporate value.

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