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Asian private equity firm Longreach Group is weighing a potential sale of its majority stake in Wendy’s First Kitchen, the Japan-based hamburger chain, according to people familiar with the matter. The firm has engaged a financial adviser and is sounding out potential buyers, though discussions remain at an early and private stage.
Longreach acquired Wendy’s Japan in 2016 and simultaneously took control of First Kitchen, combining the two brands under one platform. Any sale could also involve food importer Higa Industries, which holds a minority stake and is led by Wendy’s Japan chairman Ernest Higa.
The possible divestment comes as Japan’s fast-food sector continues to expand, supported by aggressive store openings from players such as Burger King and restrained price increases that have helped retain consumers despite inflation. Industry forecasts suggest Japan’s fast-food market could grow to more than $100 billion by 2033, nearly doubling from 2024 levels, even as the population of younger consumers gradually declines.
M&A activity in the sector has also picked up, reflecting investor confidence in long-term growth. In November, Affinity Equity Partners announced plans to sell Burger King’s Japanese operations to Goldman Sachs. Wendy’s First Kitchen currently operates 108 locations nationwide, ranking eighth in Japan’s burger market, well behind leaders McDonald’s and Mos Burger.
A spokesperson for Longreach declined to comment on the potential sale.
Source: Japan Times
