Seven & i Holdings Co Ltd 3382

Morningstar Rating

Seven & I's US Operations Drag Consolidated Returns Lower on Higher Capital Base on Lower Margins

Business Strategy and Outlook

Japan’s Seven & i Holdings, or 7&i, counts its Japanese and US operations as the major profit contributors. However, Seven-Eleven Japan, or SEJ, is far more profitable, with an operating profit margin of 24.8% in fiscal 2025, while 7-Eleven Inc., or SEI, has an operating profit margin of 4.2%. Part of this is due to the significance of low-margin gasoline sales in the US. Higher-margin food sales make up 68% of SEJ sales and just 26% of its SEI sales.

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