Longreach Group is considering the sale of its majority stake in Wendy’s First Kitchen in Japan, according to sources cited by Bloomberg. 

The private equity firm has hired a financial adviser and is seeking potential buyers.

Longreach acquired shares in Wendy’s Japan in 2016 and simultaneously took control of First Kitchen. The combined business now operates 108 restaurant locations across Japan and ranks eighth in the country’s hamburger chain market.

The potential sale comes as Japan’s fast-food sector continues to expand. The market is forecast to grow to $104.1bn by 2033, up from $58.6bn in 2024, supported by limited price increases and aggressive store openings by competitors such as Burger King.

Chairman Ernest Higa, who also serves as president of Higa Industries, may sell his stake alongside Longreach, sources said. Higa Industries also holds shares in the Japanese business.

Recent transactions highlight rising private equity interest in the sector. In November, Affinity Equity Partners said it would sell Burger King’s Japanese operations to Goldman Sachs.

A spokesperson for Longreach declined to comment.

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