(428A) Stock Price

Cypress Holdings is a restaurant group operating 36 brands across 126 locations nationwide, with a focus on fresh seafood Japanese cuisine under its flagship brand "Tsukiji Shokudo Genchan," along with gourmet conveyor belt sushi, grilled chicken, and prepared dishes.

In addition to operating restaurant chains, the company handles complementary food services including takeout prepared dishes, catering, and food court operations, aiming to deliver excitement and satisfaction through daily meals.

The primary customer base consists of families and office workers, with the majority of revenue generated from in-store sales and takeout products. The company's procurement division sources ingredients from Toyosu Market and other suppliers, while leveraging in-house processing facilities and distribution networks to manage freshness and control costs, thereby establishing a revenue model that delivers reasonably priced, high-quality products.

The business operates as a single food service segment with major brands including "Tsukiji Shokudo Genchan," "Aburi Hyakkangushi Conveyor Belt Sushi," and "Sumibiyaki Yakitori Ginza Prepared Dishes." Store formats include shopping centers, suburban locations, urban mixed-use developments, and street-front locations, with some franchise operations. The company pursues a multi-brand strategy that leverages its development capabilities and relationships with real estate developers to operate multiple concepts within the same facility.

The company aims for sustainable growth with revenue expansion at the core of its management strategy. Recently, revenue increased from approximately 10.26 billion yen (fiscal year ended August 2024) to approximately 11.29 billion yen (fiscal year ended August 2025), while same-store sales growth remained strong at 111.6% in the fiscal year ended August 2024. The company prioritizes objective metrics such as return on invested capital (ROIC), same-store customer traffic and average transaction value, and the number of new store openings. It pursues management that balances profit margin maintenance with investment efficiency.

Key investment areas are new store development and human resources. Beyond commercial facilities, the company is expanding into street-front and roadside locations. As a differentiation strategy, it strengthens freshness and cost management by directly sourcing fresh fish from markets such as Toyosu, processing and distributing them in-house, thereby offering reasonably priced, high-quality products. On the human resources front, the company improves recruitment and retention through enhanced compensation, expanded incentive programs, and strengthened foreign worker hiring, thereby raising operational capabilities at store level.

For new market development and business expansion, the company continues nationwide rollout centered on its flagship brands while considering growth through franchising and acquisitions. It currently operates 36 brands across 126 directly managed stores (as of August 2025). Among approximately 850 facilities owned by partner developers, only about 5% currently have stores, so the company plans to strengthen property sourcing to increase new store openings. Regarding financing, the company intends to use debt for store openings and acquisitions in the near term while monitoring financial metrics such as net debt-to-equity ratio of 1.72x (as of end of August 2025) and implementing measures to reduce interest burden.

Regarding technological adaptation, the company strengthens services including delivery orders, takeout, and catering in response to external environmental changes. For hygiene and quality management, it conducts monthly store inspections, annual internal audits, and external inspections while establishing systems to comply with regulatory changes. Through these efforts, the company aims to balance store operational efficiency with customer satisfaction, with EBITDA increasing from approximately 932 million yen to approximately 1.032 billion yen and EBITDA margin maintaining approximately 9.1%, thereby stabilizing its earnings foundation.