Latest news with #RyuichiIsaka
Forbes
27-05-2025
- Business
- Forbes
Shareholders Approve New Board As Couche-Tard Waits On 7-Eleven Deal
Despite Couche-Tard bid shareholders have given 7-Eleven's owner more time (Photo by Joe ...) Shareholders at 7-Eleven owner Seven & i Holdings have approved a new board for the Japanese convenience store giant at the company's annual general meeting, potentially putting an acquisition by Canada's Alimentation Couche-Tard on hold. Although some of the roughly 800 in attendance on Tuesday criticized the board's revamp and compensation, all of the company's proposals passed, according to Bloomberg. Led by Stephen Dacus, Seven & i's newly appointed chief executive officer and first foreign boss, investors appeared to be willing to see how a proposed radical overhaul put forward by the Japanese retailer to counter Couche-Tard's $51.5 billion approach. At the company's annual shareholders' meeting, Dacus vowed to push ahead with "efforts in making sure that the next 10 years is better than the last 10 years," as the group implements restructuring steps to focus more on its convenience store business, which has seen slowing growth in Japan and the U.S. Its shareholders approved the appointments of the 64-year-old Dacus and 12 other board members, including Junro Ito, a member of Seven & i's founding family, as chairman and Takashi Sawada, former president of rival convenience store operator FamilyMart Co., as an external director. The new CEO, replacing outgoing boss Ryuichi Isaka, became an external Seven & i director in 2022 after working as an executive at a number of Japanese companies, including Fast Retailing Co., owner of the Uniqlo fashion chain, and the operator of the Sushiro conveyor belt sushi restaurant chain. Although Seven & i has attempted to keep Circle K owner Couche-Tard at arm's length, the company recently signed a non-disclosure agreement to share financial data with its Canadian rival and agreed to explore a sale of around 2,000 overlapping North American convenience stores — a pre-requisite to avoid any antitrust issues. These steps appear to have been enough to put shareholders into wait-and-see mode. 'We will continue to provide information on progress to our shareholders while complying with the NDA,' Ryuichi Isaka, the outgoing CEO, said at the meeting. 'We will continue to compare and evaluate our plan with the external proposal, as we seek to maximize value for shareholders and all stakeholders.' Seven & i Holdings confirmed Stephen Dacus, as the company's first overseas CEO. (Photo by KAZUHIRO ... More NOGI/AFP via Getty Images) Seven & i will examine the "two options as we pursue constructive talks and the steady implementation of our own measures in parallel," Isaka added. Alain Bouchard, Couche-Tard's chairman, has said he may propose a higher price for Seven & i once he has had the chance to inspect the Japanese company's financial information. Meantime, among a number of proposed internal reforms, Seven & i has agreed to sell its subsidiary operating the Ito-Yokado supermarket chain to U.S. private equity firm Bain Capital for around $5.7 billion, while it wants to achieve a U.S. listing for its 7-Eleven convenience store business unit in 2026. The company also said it will sell part of its shareholdings in Seven Bank Ltd. to deconsolidate the banking subsidiary. The Japanese company said in fall last that it planned to change its name to 7-Eleven Corp. to emphasize its focus on the retail brand, pending shareholder approval at Tuesday's meeting. However, that plan was not included in voting proposals company said that more time was needed for in-house coordination. While Seven & i's shares have bounced back from lows after the restructuring measures were first announced, its market value remains at around $39 billion, nearly a quarter below the price the Couche-Tard is willing to pay. The NDA between the companies includes a so-called standstill provision, usually designed to prevent a potential buyer from making a hostile bid. In the meantime, it will likely take months for Couche-Tard to fully evaluate Seven & i's financials and for the company to demonstrate that its restructuring efforts are working.
Japan Times
27-05-2025
- Business
- Japan Times
Seven & I shareholders back new board to deal with takeover proposal
Seven & I Holdings shareholders approved a new board at a low-key annual meeting, despite the drama surrounding a company facing a takeover proposal by Alimentation Couche-Tard, the operator of Circle K stores. Although some of the roughly 800 in attendance on Tuesday criticized the board's revamp and compensation, all of the company's proposals passed. Tallies are usually disclosed at a later date. Investors appear to be willing to see what happens with the radical overhaul, which the Japanese retailer had pledged to counter Couche-Tard's ¥7.39 trillion ($51.5 billion) approach. That effort is being led by new CEO Stephen Dacus, who presided over the meeting. While Seven & I has been slow to engage with its Canadian suitor, the operator of 7-Eleven stores has recently signed a nondisclosure agreement (NDA) to share financial data with Couche-Tard. It has also agreed to explore a sale of 2,000 overlapping North American convenience stores — a prerequisite to resolve any antitrust concerns. These steps appear to have been enough to put shareholders into wait-and-see mode. 'We will continue to provide information on progress to our shareholders while complying with the NDA,' Ryuichi Isaka, the outgoing CEO, said at the meeting. 'We will continue to compare and evaluate our plan with the external proposal, as we seek to maximize value for shareholders and all stakeholders.' Alain Bouchard, Couche-Tard's chairman, has said he could propose a higher price for Seven & I once he has a chance to take a closer look at the Japanese company's financial information. Meanwhile, Seven & I is seeking to bolster its valuation through a series of strategic moves, including selling off underperforming retail assets, listing its U.S. operations, buying back shares and appointing new leadership. 'The real significance lies in execution of these measures, whether these steps translate into sustained financial performance and a stock re-rating,' said Bloomberg Intelligence analyst Lea El-Hage. Shareholders are waiting for 'tangible execution,' she added. That appears to be the approach taken by Artisan Partners, which last year urged Seven & I to negotiate a deal with Couche-Tard for a takeover price that maximizes shareholder value. While Seven & I's shares have bounced back from lows after the restructuring measures were announced, its market value remains at ¥5.66 trillion, roughly 23% below the price Couche-Tard is willing to pay. The NDA between the companies includes a standstill provision, which are usually designed to prevent a potential buyer from making a hostile bid. In the meantime, it will probably take months for Couche-Tard to fully evaluate Seven & I's financials and for the company to show whether its restructuring efforts are gaining any traction. Any future decisions by Seven & I will also be shaped by a board that will bring in five new directors: Shigeki Kimura, Seven & I executive vice president; Takashi Sawada, former CEO of FamilyMart; Masaki Akita, chairman of Matsuya; Tatsuya Terazawa, former Ministry of Economy, Trade and Industry director general; and Christine Edman, former Hennes & Mauritz Japan president. 'Shareholders are not as disappointed as they were,' said Lorraine Tan, an analyst at Morningstar Asia. 'Criticisms have been partly appeased.'
Yahoo
12-04-2025
- Business
- Yahoo
3 Big Numbers: Digging into 7-Eleven's earnings
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. 3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry. Seven & i Holdings, parent company of 7-Eleven, released its fiscal Q4 and full-year earnings on Wednesday, and there was a lot to talk about. CEO Ryuichi Isaka likely presided over his last earnings report at the helm, operating income took a big hit and analyst questions focused on the retailer's upcoming IPO of its North American operations, 7-Eleven Inc. When we looked specifically at the North American data for this column, there were a few numbers that jumped out, from hundreds of millions in cost savings to the 104 million 7Rewards and Speedy Rewards members on the books. But since 7-Eleven is banking on its food programs to steady the ship, we decided to focus on its gains in that area. In today's '3 Big Numbers,' we look at how private label goods, hot food and proprietary QSRs are playing a role as 7-Eleven hopes its renewed food focus can boost sales. The number of 7-Eleven stores expected to have QSRs by the end of fiscal 2025. While many customers might associate c-store QSRs with the likes of Arby's or Subway, 7-Eleven has spent years developing its own restaurants, including Raise the Roost Chicken & Biscuits and Laredo Taco Company. 7-Eleven already has QSRs in 1,080 stores, but it plans to reach a total of 1,130 in fiscal 2025, according to the earnings presentation. The benefits are clear. On average, 7-Elevens with QSRs see around 400 extra customers per day, which helps those stores earn more than $2,000 more in daily sales than stores without a restaurant, according to the presentation. Margins are slightly higher for stores with QSRs as well. Seven & i also is looking to streamline SKUs and use meal deals and special offers to boost its food sales, according to the earnings presentation. The average same-store sales increase per day for stores with a modernized food and beverage program. 7-Eleven has been working on its food and beverage modernization program for years. This food refresh includes enhanced grab-and-go areas, bakery items and an updated coffee program, according to the earnings presentation. And according to that presentation, stores that have the full modernization are earning $135 more per day, on average, than they did before the updates. About 563 7-Eleven stores have the full food program, while 1,583 sites have portions of it. Another 423 stores are expected to get a total or partial modernization in the Q1 2025. As the program spreads, this should boost sales and the bottom line. 7-Eleven's profit margin on private label goods. One of the great things about private label items is that, when done well, they keep customers happy while putting more money in the company's coffers. 7-Eleven, for example, noted in its Q4 earnings report that the profit margin on its private label items was 51.3%. National brands, meanwhile, had a 33% profit margin. That's a more than 18 percentage point difference. The retailer plans to press its advantage in fiscal 2025. After adding 215 new private label items in 2024, it's hoping to debut roughly the same amount this year, including launching eight new categories. Recommended Reading 3 Big Numbers: How new tech is paving the way for c-stores
Yahoo
04-03-2025
- Business
- Yahoo
7-Eleven shares plunge on reported plan to reject takeover
Shares of the owner of 7-Eleven plunged on Tuesday after a report said the Japanese retailer plans to reject a multibillion-dollar takeover offer by Canada's Alimentation Couche-Tard (ACT). Seven & i, which operates some 85,000 convenience stores worldwide, last year rebuffed an ACT offer worth nearly $40 billion that would have been the biggest foreign buyout of a Japanese firm. The Yomiuri daily reported that a special committee scrutinising ACT's raised offer of reportedly around $47 billion has decided formally to say no to that too. The decision was due in part to antitrust concerns, given Seven & i and ACT's overlapping network of stores in the United States, the daily added. Seven & i shares, which have been highly volatile since ACT's approach was first announced, shed as much as 10 percent after the Tokyo market opened on Tuesday. The latest news followed separate reports that the 7-Eleven owner is set to replace its CEO Ryuichi Isaka with outside director Stephen Hayes Dacus. Dacus, who has also worked for Uniqlo owner Fast Retailing and the Japanese arm of US retail giant Walmart, would also be Seven & i's first foreign CEO. Seven & i said on Monday "no decision has been made" about management changes. Last week Seven & i said its founding family failed to put together sufficient financing for a buyout to fend off ACT's offer. The franchise began in the United States, but it has been wholly owned by Seven & i since 2005 and is the world's biggest convenience store brand. ACT, which began with one store in Quebec in 1980, now runs nearly 17,000 convenience store outlets worldwide including the Circle K chain. tmo/stu/sn
Iraqi News
03-03-2025
- Business
- Iraqi News
7-Eleven to replace CEO in Couche-Tard takeover battle: reports
Tokyo – 7-Eleven's owner is set to replace its CEO as the Japanese convenience store giant battles a $47-billion takeover bid by Canada's Alimentation Couche-Tard (ACT), reports said Monday. Last week Seven & i said its founding family failed to put together a buyout to fend off ACT's offer, which would be the largest foreign acquisition of a Japanese firm. Japan's Nikkei business daily and other media reported that Seven & i's president Ryuichi Isaka would be replaced by outside director Stephen Hayes Dacus. Dacus, who has also worked for Uniqlo owner Fast Retailing and the Japanese arm of US retail giant Walmart, would also be Seven & i's first foreign CEO. A formal decision will be made at a board meeting, the reports said, citing sources familiar with the matter. Dacus currently heads a special committee tasked with evaluating ACT's bid, which the Canadian firm has already sweetened. Dacus and the committee are expected over the next few weeks to unveil strategic proposals to increase the company's value ahead of an annual shareholder meeting in May, the Financial Times reported. 'There have been reports in some news media regarding the management of Seven & i,' the company said in a statement. 'However this information was not announced by the Company and no decision has been made by the Company at this time,' it said. Seven & i shares soared as much as 12 percent on Thursday on news that the company's founding Ito family had failed to put together financing for its alternative offer. On Monday they rose as much as 4.6 percent and closed up 2.37 percent. With around 85,000 outlets, 7-Eleven is the world's biggest convenience store brand. The franchise began in the United States, but it has been wholly owned by Seven & i since 2005. ACT, which began with one store in Quebec in 1980, now runs nearly 17,000 convenience store outlets worldwide including the Circle K chain. ACT said on Friday that it still hoped to achieve a 'friendly agreement'. In September, when Seven & i rejected the initial takeover offer from ACT, the company said it had 'grossly' undervalued its business and could face regulatory hurdles.
