Latest Trends: 2025 M&A Trends Report for Food and Restaurant Industries

US investment bank Houlihan Lokey has released a 'Sector Report' providing unique insights into the food and restaurant industries. The report analyzes M&A trends based on the 2025 fiscal year financial results of major domestic companies.

## Food Industry: Competitiveness Challenged by High Costs and Activist Pressure
In fiscal year 2025, the food industry maintained revenue growth through price revisions, but earnings disparities widened due to differences in maintaining sales volume and managing costs.
- High-Value-Added: Companies expanding into peripheral areas, such as Ajinomoto, Morinaga Milk Industry, and Nissui, have gained strong market ratings.
- Global Growth: Following models like Ajinomoto, Kikkoman, and JT, securing overseas business bases (e.g., Morinaga & Co.'s investments) is becoming a new competitive axis.
- Capital Efficiency: Driven by Tokyo Stock Exchange requirements and activist involvement, reviews of low-profit businesses and M&A activity are accelerating.

## Restaurant Industry: The Next Battlefield After Price Hikes is 'Quality of Growth'
While solid due to inbound demand and price hikes, earnings polarization intensified due to rising labor costs.
- Quality of Growth: Brand strength, customer experience, and location strategies now determine corporate value.
- Sophisticated Evaluation: Even with revenue growth, stock price evaluations are polarizing as the market increasingly emphasizes sustainability and capital efficiency.
- Competitive Factors: App strategies to improve customer visit frequency and DX (mobile ordering, serving robots) have become critical themes.