Investing in Ramen Stocks? Gift Holdings (9279.T) vs. Hiday Hidaka (7611.T)

Which Japanese ramen giant serves tastier returns?

Please note: This analysis is for informational purposes only and is not intended as investment advice. Mention of specific stocks is not a recommendation to buy or sell any securities.

The other day, I went to one of my favorite ramen spots, the Shin-Yokohama Ramen Museum! Here, you can try ramen from all over Japan in a building where you’re transported back in time.

The Shin-Yokohama Ramen Museum

Being in this building packed-to-the-brim with ramen, surrounded by Japanese and foreign tourists alike, it made me realize just how much of an impact ramen has had on the world. In fact, in a recent study by Entable, ramen is ranked the no.1 Japanese food among foreigners!

Given ramen's surging global popularity, it feels like the perfect moment to ask: Can you actually invest in ramen?

Of course you can! Japan’s stock market hosts several ramen-focused companies quietly serving profits alongside steaming bowls of noodles. Two standouts are Gift Holdings (9279.T), rapidly expanding worldwide with its popular Iekei ramen brand, and Hiday Hidaka (7611.T), the seasoned veteran behind ramen’s equivalent of McDonalds, Hidakaya shops.

In this analysis, I'll crown Japan’s true ramen king: The ultimate stock pick for investors hungry to ride ramen’s global rise.

Summary

Hiday Hidaka

• Stock Price (March 2025): ¥2,844

• Market Cap: ¥109.08 billion

• PER: 31.4x, PBR: 4.0x

• Dividend Yield: 1.34%

• Strong brand recognition in affordable Chinese-style ramen

• Financial stability with a high equity ratio (75%)

• Significant valuation concerns given modest growth and low net margins (~6%)

Gift Holdings

• Stock Price (March 2025): ¥2,837

• Market Cap: ¥89.7 billion

• PER: 24.3x, PBR: 6.7x

• Dividend Yield: 0.8%

• Aggressive franchise-driven growth and strategic location selection

• Successful niche ramen brands with higher margins (Machida Shoten, Butayama)

• Risks include high valuation, low equity ratio (35%), recent negative profit growth (-3%)

Table of Contents

1. Company Overview
2. Investment Thesis
3. Valuation Analysis
4. KonichiValue Score
5. Conclusion