Pepper Food Service (3053): FY2025 Results Summary — Net Loss on Extraordinary Losses Despite Higher Sales

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Pepper Food Service does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported.

For the fiscal year ended December 2025 (full year), Pepper Food Service Co., Ltd. posted net sales of 14,553 million yen (13,988 million yen in the previous year), operating profit of 42 million yen (76 million yen a year earlier), ordinary profit of 44 million yen, and a net loss of ▲114 million yen (net income of 28 million yen a year earlier). Net sales came in at 99.6% of plan, roughly in line with the company’s forecast; operating profit and ordinary profit exceeded plan thanks to price optimization and containment of SG&A expenses, but with extraordinary income/loss of ▲97 million yen, net income swung from the prior year’s profit to a loss, finishing 24 million yen below plan. In the fourth quarter (October–December), fair products, various sales-promotion measures and price revisions delivered black ink across every profit line — operating profit, ordinary profit and net income.

Consolidated Results (Full Year)

Full-year net sales were 14,553 million yen (99.6% of plan) and gross profit was 8,811 million yen (gross margin 60.5%, 100.2% of plan). With selling, general and administrative expenses held to 8,768 million yen (99.8% of plan), operating profit was 42 million yen (366.3% of plan) and ordinary profit was 44 million yen (209.1% of plan). Meanwhile, extraordinary income/loss was ▲97 million yen (plan ▲29 million yen), so pre-tax profit was ▲52 million yen and net income was ▲114 million yen (plan ▲91 million yen).

Item	FY2025 (ended Dec 2025)	FY2024 (ended Dec 2024)	Change
Net sales	14,553 million yen	13,988 million yen	+565 million yen
Operating profit	42 million yen	76 million yen	▲34 million yen
Net income	▲114 million yen	28 million yen	▲142 million yen
EBITDA	230 million yen	258 million yen	▲28 million yen
Number of stores (total)	192 stores	186 stores	+6 stores

Item (million yen)	Actual (FY2025)	Plan (FY2025)	Variance
Net sales	14,553	14,618	▲65
Gross profit	8,811	8,796	+15
SG&A expenses	8,768	8,784	▲16
Operating profit	42	11	+31
Ordinary profit	44	21	+24
Net income	▲114	▲91	▲24
EBITDA	230	196	+54

Segment Results

The Ikinari! Steak business posted net sales of 13,832 million yen and operating profit of 1,532 million yen (a profit of 1,290 million yen in the prior year), beating both plan and the prior year. The Restaurant business recorded net sales of 648 million yen and an operating loss of ▲70 million yen, falling short of plan due to initial costs associated with new store openings. Headquarters/Other posted an operating loss of ▲1,419 million yen, above plan. Driven by the earnings contribution of the Ikinari! Steak business, company-wide operating profit reached 42 million yen, exceeding plan.

Segment	Metric	Actual (FY2025)	Plan (FY2025)
Ikinari! Steak business	Net sales	13,832 million yen	13,873 million yen
Ikinari! Steak business	Operating profit	1,532 million yen	1,476 million yen
Restaurant business	Net sales	648 million yen	667 million yen
Restaurant business	Operating profit	▲70 million yen	▲44 million yen
Headquarters/Other	Net sales	73 million yen	78 million yen
Headquarters/Other	Operating profit	▲1,419 million yen	▲1,420 million yen
Total	Net sales	14,553 million yen	14,618 million yen
Total	Operating profit	42 million yen	11 million yen

Full-Year Forecast

The company has established medium-term numerical targets covering fiscal 2026 through fiscal 2029. Its plan for the fiscal year ending December 2026 calls for net sales of 15,548 million yen, operating profit of 101 million yen, net income of 50 million yen, EBITDA of 334 million yen and 198 stores (total). It plans steady increases in sales, profit and store count from fiscal 2027 onward, targeting net sales of 19,922 million yen, operating profit of 537 million yen, net income of 487 million yen and 262 stores in fiscal 2029.

Item	FY2026 Plan (ending Dec 2026)	FY2025 (Actual)
Net sales	15,548 million yen	14,553 million yen
Operating profit	101 million yen	42 million yen
Net income	50 million yen	▲114 million yen
EBITDA	334 million yen	230 million yen
Number of stores (total)	198 stores	192 stores

Shareholder Returns

The materials contain no disclosure regarding shareholder returns such as dividends or share buybacks.

Medium-Term Plan / Topics

In its medium-term management plan the company has adopted “gradual advancement” as its theme, pursuing new store openings in Japan and overseas, the establishment of new store formats, and active overseas expansion. During the fourth quarter it opened the next-generation store “Ikinari! Steak Kanda Kitaguchi” (opened December 24), the delivery-only outlet “Ikinari! Steak Delivery-Only Sasazuka” (opened November 14), the seafood izakaya “Kaki Kaiko Kairi Kichijoji” (opened November 1), and two overseas stores. In overseas expansion, it opened its fifth store in Indonesia, “Ikinari Steak Pondok Indah Mall 2” (opened October 1), and its fifth store in the Philippines, “Ikinari Steak Alabang Town Center” (opened November 12), bringing the overseas store count to 12. New openings and business acquisitions increased the number of domestic stores by seven.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.