Oct 07 (Nikkei) - Japanese beef bowl purveyor Yoshinoya Holdings posted its biggest first-half profit in a decade Friday, thanks to a spiced-up menu, putting the company on the road to shedding its underdog status among industry peers.
Group operating profit came to 2.1 billion yen ($18.5 million) for the six months ended August. Much of the gain stemmed from lower beef procurement costs. But sales at the eponymous Yoshinoya gyudon beef bowl restaurants have been recovering of late.
Domestic existing-store sales had fallen short of year-earlier figures for three straight months starting last December. And in the first half of 2017, they registered growth in only two months.
Now, sales have grown on the year for the two months through September. Last month's reading of 1.6% bested those of Zensho Holdings' Sukiya chain and Matsuya Foods -- the two top rivals -- for the first time this year. Sukiya, in particular, has missed year-earlier figures since July.
Yoshinoya brass remains cautious. "We still can't take anything for granted, but we were able to generate results to a certain extent," said Yasutaka Kawamura, president of the holding company, to reporters.
The company can credit its good fortune to such revamped offerings as new set beef bowl menus launched Sept. 23. The serving size is generous for the 680 yen price tag, a male office worker said that month.
