Operating Margin - Ichibanya Co Ltd (TSE:7630)

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Price: 912 JPY -1.72%

Market Cap: 145.6B JPY

Current

Average

7.2%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

Operating Profit

Revenue

63.4B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
JP		Ichibanya Co Ltd TSE:7630	145.6B JPY	8%
US		McDonald's Corp NYSE:MCD	216B USD	46%
JP		DD Holdings Co Ltd TSE:3073	18.1T JPY	10%
US		Starbucks Corp NASDAQ:SBUX	95.5B USD	10%
UK		Compass Group PLC LSE:CPG	39.6B GBP	7%
US		Chipotle Mexican Grill Inc NYSE:CMG	49.7B USD	17%
US		Yum! Brands Inc NYSE:YUM	41.8B USD	32%
CA		Restaurant Brands International Inc NYSE:QSR	30.8B USD	26%
IN		Eternal Ltd NSE:ETERNAL	2.6T INR	-2%
US		Darden Restaurants Inc NYSE:DRI	21.8B USD	12%
CN	M	MIXUE Group HKEX:2097	154.4B HKD	23%

Ichibanya Co Ltd
Glance View

Market Cap

145.6B JPY

Industry

Hotels, Restaurants & Leisure

In the bustling heart of Japan's dynamic food industry, Ichibanya Co Ltd stands as a veritable icon, recognized for transforming the perception of curry rice into a celebrated culinary experience. Founded in 1978, this company has mastered the art of delivering a simple yet beloved dish with a twist. Ichibanya operates under the brand name "Curry House CoCo Ichibanya," a franchise that has grown exponentially both domestically and internationally. Its success hinges on a unique business model that combines consistency, customization, and accessibility. By offering a vast assortment of toppings, spice levels, and portion sizes, customers are empowered to tailor their meals precisely to their tastes, thus creating a personalized dining experience that encourages repeat visits and fosters brand loyalty. This strategic blend of quality and personalization forms the backbone of Ichibanya's operations, driving sales and ensuring sustained growth. At the core of Ichibanya's revenue engine is its expansive franchise network, which facilitates the opening of new outlets across diverse locales while maintaining quality and brand standards. Franchisees are supported through comprehensive training programs and an efficient supply chain system, ensuring that each dish meets the brand’s high standards of taste and presentation. This franchise model not only allows Ichibanya to quickly scale its operations but also reduces the risks and costs associated with direct ownership of each restaurant. The company's revenue streams are further diversified through its retail and packaged curry products, which bring the iconic CoCo Ichibanya experience right into customers' homes. By maintaining a seamless synergy between its restaurant operations and retail products, Ichibanya Co Ltd continues to cement its status as a culinary staple while strategically expanding its footprint in an ever-evolving global market.

View Ichibanya Co Ltd Analysis

Ichibanya Co Ltd Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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Ichibanya Co Ltd
TSE:7630