What exactly is Colowide buying with C-United?

Media reports say Colowide has priority rights to acquire C-United for about ¥40 billion. C-United operates Café Veloce, Café de Crié, and Kohikan, totaling roughly 560 stores in Japan. The move expands Colowide’s presence in Japan coffee chains and adds stable morning and afternoon traffic to its portfolio.

How could the deal affect margins and earnings?

The Colowide C-United buyout could lift margins through dessert manufacturing scale, shared procurement, and fuller use of central kitchens. Coffee formats bring steadier dayparts and smaller, resilient tickets. Execution matters: monitor same-store sales, operating margin, and integration costs to see if synergy targets translate into sustainable earnings growth.

Is the stock expensive after this news?

On current metrics, Colowide trades around 0.68 times sales and about 9.53 times EV/EBITDA, which looks reasonable for a scale operator. The risk sits in leverage and funding terms. Debt-to-equity is near 2.51 and the dividend yield is about 0.27%, so balance sheet flexibility is a key watchpoint.

What trading levels should I watch near term?

Resistance sits around ¥1,882 to ¥1,896, with a round-number hurdle near ¥1,900. Supports are close to the 200-day average at ¥1,823 and the 50-day average at ¥1,767. An upside marker is our monthly model at ¥1,909.88. A close below ¥1,767 would weaken the trend.

Global Market Insights

7616.T Stock Today: Colowide Eyes C-United Buyout – February 21

ByDanny Kontos February 21, 2026February 21, 2026

The Colowide C-United buyout is in focus after Colowide (7616.T) secured priority rights to acquire C-United, operator of Café Veloce, Café de Crié, and Kohikan. The reported price is about ¥40 billion, adding roughly 560 stores to Colowide’s Japan footprint. Shares traded at ¥1,872 today, with a day range of ¥1,829 to ¥1,872.5. Investors in Japan are weighing scale benefits in coffee and desserts against higher leverage and execution risk as deal terms, financing, and approvals take shape.