Watami presented positive results in the second quarter of fiscal year 2026, ending in September 2025. The company recorded net revenue of 44.716 billion yen, an increase of 3.1% year-on-year. Operating profit fell 4.1% to 2.139 billion yen, but ordinary profit rose to 2.242 billion yen.
The acquisition of the Japanese operation of Subway, completed in October 2024, remains the main driver of growth. The sandwich chain has accumulated 60 consecutive months of sales above the previous year in existing stores. The reform of the coffee menu, highlighted by president Watabe Miki, presents a performance 20% higher than the pre-acquisition period.
Subway leads sales expansion
The American chain adapted to the Watami model records an average increase of 20% in coffee sales after reformulating the product. Points of sale maintain growth even after one year of the announced purchase.
Other brands in the group are also advancing. The izakaya and yakiniku units showed a 6.2% increase in comparable store sales in the semester. The appreciation of manual preparation and service receives positive feedback from customers.
Aggressive adjustment in the lunch box segment
The meal delivery business for seniors faced reduced revenue in the first half of the year. The company reacted with a 140 yen cut in the average price, from 590 to 450 yen as of September 15th.
The in-house production of ingredients allowed us to maintain a margin even with a 24% lower price. The line aimed at seniors over 75 years old gained new options on the menu.
Own rice production advances
Watami began large-scale cultivation of its own rice in 2025. The established goal envisages full supply of restaurants’ needs with in-house production in the coming years.
Vertical integration reduces raw material costs and guarantees quality standards. The first batches already supply part of the operational units.
Long-term salary strategy
The company confirmed an average increase of 7% in salaries from April 2026. President Watabe Miki declared his intention to repeat the adjustment for ten consecutive years.
The move would raise wages to double their current level by 2035. The company is positioned to become the highest paying company in the Japanese food sector.
Investments maintain pace
The group allocates resources to opening new Subway units and modernizing existing restaurants. The technology area receives support to improve the ordering and delivery system.
The combination of organic growth with strategic acquisitions supports the recovery trajectory initiated after the restructuring completed in previous years. Management maintains positive projections for the second half of the year.
