Pay attention to ramen-related stocks. We can expect growth in the medium to long term, driven by economic normalization and inbound demand.
―A comprehensive review of related stocks that are a hot topic with the listing of “Kairikiya” and are expected to grow―
Companies that operate ramen restaurants are performing strongly. The trend toward economic normalization as the coronavirus pandemic subsides has been a tailwind, and a number of stocks have seen their stock prices soar as their business performance expands.Related stocks have been attracting a certain amount of interest due to strong business performance and stock prices, but this month, ramen restaurant operator Kairikiya <5891> [東証Ｓ]The company’s new listing has become a hot topic, and interest has been increasing recently. Ramen is very popular not only in Japan but also overseas, and related brands are benefiting from the rapidly increasing inbound demand. We will continue to keep an eye on ramen-related stocks.
●Number one in popularity among visitors to Japan, higher than sushi
On the 15th of this month, Kairikiya was newly listed on the TSE Standard Market. The company operates ramen restaurants called “Kyoto Kitashirakawa Ramen Kairikiya” mainly in the three major metropolitan areas of Kanto, Tokai, and Kansai. The initial price was 1,822 yen, much higher than the public price (1,400 yen), which got off to a good start. Business performance is also strong, and operating income for the fiscal year ending December 2023 is expected to be a record high of 602 million yen, an increase of 58% from the previous fiscal year. This is due to the fact that the new coronavirus is classified as a Type 5 infectious disease and the domestic economy is progressing toward normalization.
The restaurant industry, including ramen restaurants, has been on the road to recovery since March 2022, when the last priority measures to prevent the spread of the virus were lifted. The recovery trend continued this year, but ramen restaurants should be watched as a business type that can be expected to grow from next year onwards. This is because, in addition to economic normalization, there is another strong tailwind: inbound demand.
According to the Japan Tourism Agency’s survey on consumption trends among foreigners visiting Japan (April-June period), the top thing visitors said they did during their stay was “eating Japanese food.” Furthermore, looking at the foods and drinks that most satisfied them (single answer), “meat dishes” (28.8%), “ramen” (20.0%), and “sushi” (16.1%) were cited in descending order. Ramen ranks higher than sushi, which can be said to be the representative Japanese food. “Meat dishes” seems to include a variety of dishes such as grilled meat and steak, so ramen is likely to be the most popular dish.
●Multiple stock price, Gift HD, Source of Power HD, Yamaoka family, etc.
Inbound demand is expected to continue to increase, and the tailwind for the ramen industry is likely to become even stronger. I would like to mark stocks related to ramen noodles in the medium to long term.
gift holdings <9279> [東証Ｐ]operates a number of ramen businesses, centering on Yokohama Iekei Ramen “Machida Shoten”. In addition to directly managed stores, we are expanding our store network by developing “produced stores” that provide consulting services for store management know-how. The total number of stores, including those produced by the company, has increased from 415 stores (as of October 2018) immediately after listing to 745 stores (as of October 2023) in five years. The company plans to open 832 stores in the fiscal year ending October 2024. We expect to achieve the highest operating profit this fiscal year as well, and plan to increase the dividend. The stock price has temporarily doubled this year compared to the level at the end of March 2022 after the ban was lifted, setting a new high since the company went public.
Power Source Holdings <3561> [東証Ｐ]mainly operates the tonkotsu ramen restaurant “Ippudo”. The key point is that they are accelerating their overseas expansion, with 137 of the group’s total number of 279 stores (as of the end of September), accounting for about half. The company operates in a wide range of regions, including Asia, such as China, Hong Kong, Taiwan, and Southeast Asia, as well as the United States, the United Kingdom, France, and Australia. For the fiscal year ending March 2024, operating profit is expected to increase by more than 30% compared to the previous fiscal year, setting a new record high. Stock prices have been on an upward trend since the beginning of this year, at one point increasing by 4.3 times compared to the end of March 2022.
Maruchiyo Yamaoka family who operates “Ramen Yamaoka family” <3399> [東証Ｓ]announced on the 11th of this month an upward revision of its forecast for the fiscal year ending January 2024, which attracted the attention of the market as it was bought at a ceiling high. Price revisions in response to the increased flow of people and rising costs due to the end of the coronavirus pandemic will contribute. Along with the expansion of business results, the stock price has continued to rise, and the rate of increase in the stock price since the end of March 2022 has at one point reached nearly five times this year.
Monogatari Corporation, a mid-sized restaurant company <3097> [東証Ｐ]The company mainly handles yakiniku, but also handles ramen businesses such as “Marugen Ramen”. For the fiscal year ending June 2024, we plan to achieve the highest operating profit and increase the dividend in line with the previous fiscal year. Looking at the most recently announced monthly sales figures for November (domestic directly managed stores and franchise stores), the ramen division continues to show high growth with an 18.4% increase compared to the same month last year. The stock price increase rate compared to the end of March 2022 was 2.5 times at one point this year.
In addition, Toridoll Holdings, a major restaurant operator that operates “Zundo-ya” <3397> [東証Ｐ]Korakuen Holdings, a major ramen chain <7554> [東証Ｐ]In addition to “Chikuho Ramen Yamagoya” in Kyushu, Y.S. <3358> [東証Ｓ]Hachiban, which operates “8th Ramen” in Hokuriku <9950> [東証Ｓ]JB Eleven with “Ikkoku Kaido” located mainly in the Tokai region. <3066> [名証Ｍ]I also want to keep an eye on it.
● Osho Food and Heide Hidaka are at their highest price since listing due to upward revision for the full year
Not only companies that operate ramen restaurants, but also Chinese restaurant chains that serve ramen are of course related brands that cannot be overlooked. Osho Food Service, which operates “Gyoza no Osho” nationwide. <9936> [東証Ｐ]announced an upward revision to its forecast for the fiscal year ending March 2024 in October, citing an increase in customer numbers and price revisions. The company also announced an increase in dividends, and in recognition of this, the stock price hit a new high for the first time in five years, and has remained steady in the high range ever since.Hiday Hidaka operates a passionate Chinese restaurant “Hidakaya” mainly in the Tokyo metropolitan area. <7611> [東証Ｐ]announced an upward revision for the full year in August. The company also hit a new high since its listing.
Eat and Holdings, which operates “Osaka Osho” <2882> [東証Ｐ]In addition to aggressively opening stores in Japan, the company is also focusing on overseas expansion, mainly in China and Taiwan, and aims to achieve its highest operating profit in the fiscal year ending February 2024.In addition, Skylark Holdings, which operates the Chinese restaurant “Bamiyan” <3197> [東証Ｐ]and Totenhong, a major Chinese restaurant. <8181> [東証Ｓ]Hama Momen from the Tokai region <7682> [東証Ｓ]Related stocks include:
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2023-12-25 10:30:00
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