Kura Sushi, Inc. (2695) AI Stock Analysis

• Market Cap: ¥148.12B
• Dividend Yield: 0.63%
• Average Volume (3M): 293.68K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 0.52
• Revenue Growth: 4.32%
• EPS Growth: 11.78%
• Country: JP
• Employees: 2,824
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 3.64
• Shares Outstanding: 41,399,600
• 10 Day Avg. Volume: 168,270
• 30 Day Avg. Volume: 293,683
• PEG Ratio: 3.11
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 28.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,050.00
• Price Target Upside: -3.02% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 80.98
• Revenue Forecast (FY): ¥258.69B

• Rating: 58 Neutral
• Price Target: ¥3,884.00 ▲(23.50% Upside)
• Action: Reiterated Date: 12/18/25
• Date: Action: Reiterated 12/18/25

Kura Sushi, Inc. demonstrates strong financial performance with robust revenue growth and efficient cost management. However, technical indicators show bearish momentum, and the stock appears overvalued with a high P/E ratio. The low dividend yield further limits its attractiveness. The company needs to focus on improving profitability and managing leverage to enhance its stock appeal.

Positive Factors

High Gross Margin

A gross margin near 59% indicates durable unit-level economics and effective food and cost controls. High gross margins provide a buffer against commodity and wage inflation, supporting sustainable unit profitability and margin retention as the chain scales over the next several quarters.

Strong Operating Cash Flow

Consistently strong operating cash flow shows the restaurants convert sales into cash efficiently, enabling capex for new stores, maintenance and working capital without relying solely on external financing. This supports durable expansion and operational resilience over months ahead.

Scalable Standardized Model & Revenue Growth

A standardized, high-volume restaurant model combined with near 10% recent revenue growth demonstrates repeatable unit economics and rollout potential. Standardization lowers training and operating variability, aiding consistent margins and scalable expansion over the medium term.

Negative Factors

Low Net Profit Margin

A net margin around 1.4% leaves little room to absorb shocks or invest from retained earnings. Over the medium term this constrains reinvestment, limits earnings retention for debt reduction, and makes profitability sensitive to cost inflation or revenue softness.

Declining Free Cash Flow Growth

Falling free cash flow growth reduces internal funding for new openings and increases dependency on external capital. Persistently weaker FCF undermines liquidity cushions and raises refinancing or capital-raising needs, pressuring strategic flexibility over coming quarters.

Rising Total Debt

Although D/E is moderate at 0.63, rising total debt increases interest and refinancing exposure. With low net margins and declining FCF, growing leverage elevates long-term financial risk and could constrain investment or require costly deleveraging if operating performance weakens.

Kura Sushi, Inc. Business Overview & Revenue Model

Company Description

Kura Sushi, Inc. is a prominent restaurant chain specializing in sushi and Japanese cuisine, primarily operating in the United States. The company is known for its innovative conveyor belt sushi service, where customers can select from a variety of freshly prepared dishes as they pass by on a rotating conveyor. Kura Sushi aims to provide a unique dining experience that combines quality food with a fun and interactive atmosphere. Its core products include sushi, sashimi, and a range of traditional Japanese dishes, alongside beverages and desserts.

How the Company Makes Money

Kura Sushi generates revenue primarily through its restaurant operations, where customers pay for the food and beverages they consume. The company employs a unique pricing model that often includes a set price for items on the conveyor belt, allowing for a more casual dining experience. Key revenue streams include dine-in sales, take-out orders, and catering services. Additionally, Kura Sushi may engage in promotional partnerships and collaborations to boost brand visibility and attract new customers. The company's focus on high-quality ingredients and innovative dining experiences also contributes to customer loyalty and repeat business, further enhancing its earnings potential.

Kura Sushi, Inc. Financial Statement Overview

Summary

Kura Sushi, Inc. shows strong revenue growth and efficient cost management, reflected in a healthy gross profit margin. However, the low net profit margin and rising debt levels are concerns. Cash flow generation is solid, but declining free cash flow growth could impact future liquidity.

Income Statement

Kura Sushi, Inc. has demonstrated strong revenue growth with a 9.78% increase in the latest year, indicating a robust expansion trajectory. The gross profit margin remains healthy at approximately 59.2%, reflecting efficient cost management. However, the net profit margin is relatively low at 1.37%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, indicating consistent operational performance.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.63, suggesting a balanced approach to leveraging. Return on equity is improving, reaching 5.53%, which is a positive sign of shareholder value creation. The equity ratio stands at a solid 41.6%, indicating a strong capital structure. However, the increase in total debt over the years could pose potential risks if not managed carefully.

Cash Flow

Operating cash flow remains strong, with a high operating cash flow to net income ratio, indicating effective cash generation from operations. However, free cash flow has decreased, leading to a lower free cash flow to net income ratio. The decline in free cash flow growth rate is a concern, suggesting potential challenges in maintaining liquidity.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	245.11B	234.95B	211.41B	183.05B	147.59B
Gross Profit	145.18B	139.23B	119.23B	100.53B	80.80B
EBITDA	15.36B	15.24B	11.32B	9.76B	9.35B
Net Income	3.61B	3.23B	863.00M	744.00M	1.90B
Balance Sheet
Total Assets	156.01B	139.45B	130.12B	109.62B	98.99B
Cash, Cash Equivalents and Short-Term Investments	26.37B	23.04B	20.19B	13.17B	18.75B
Total Debt	40.97B	37.46B	35.00B	28.51B	21.95B
Total Liabilities	69.75B	66.50B	59.55B	50.66B	44.33B
Stockholders Equity	64.97B	58.35B	55.54B	51.04B	48.59B
Cash Flow
Free Cash Flow	4.63B	7.78B	1.41B	-586.00M	-3.68B
Operating Cash Flow	14.87B	18.36B	13.73B	9.94B	4.74B
Investing Cash Flow	-18.55B	-10.35B	-14.54B	-12.11B	-9.48B
Financing Cash Flow	4.95B	-4.01B	5.50B	-4.70B	2.46B

Kura Sushi, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3145.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2695, the sentiment is Positive. The current price of 3145 is below the 20-day moving average (MA) of 3565.75, below the 50-day MA of 3431.80, and below the 200-day MA of 3476.00, indicating a bullish trend. The MACD of 75.33 indicates Negative momentum. The RSI at 69.01 is Neutral, neither overbought nor oversold. The STOCH value of 81.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2695.

Kura Sushi, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9828	72 Outperform	¥53.31B	11.26	―	2.41%	6.49%	4.27%
8153	70 Outperform	¥131.82B	29.00	―	0.70%	5.15%	47.13%
7630	66 Neutral	¥144.77B	51.22	―	1.71%	9.51%	6.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7550	59 Neutral	¥1.57T	38.22	15.82%	0.78%	11.29%	-4.88%
2695	58 Neutral	¥148.12B	41.16	―	0.63%	4.32%	11.78%
9861	53 Neutral	¥200.02B	52.43	―	0.69%	10.75%	-14.28%

Kura Sushi, Inc. Corporate Events

Kura Sushi Revises Shareholder Benefit Program After Stock Split

Kura Sushi, Inc. has approved changes to its shareholder benefit program, aligning meal coupon thresholds and values with a previously announced stock split effective May 1, 2026. The program, aimed at boosting the investment appeal of its shares and deepening understanding of its business, will continue to offer annual dining vouchers to shareholders holding at least 100 shares as of April 30 each year.

Following the stock split, a new benefit tier is being introduced for post-split holders of 100 to 199 shares, who will receive meal coupons worth ¥1,000, while higher tiers are adjusted so that existing shareholders experience no substantial reduction in benefit value. The revised structure, which takes effect from the April 30, 2027 record date, is designed to preserve incentives for current investors while making the program more accessible to smaller shareholders and potentially broadening the company’s investor base.

The most recent analyst rating on (JP:2695) stock is a Hold with a Yen3723.00 price target. To see the full list of analyst forecasts on Kura Sushi, Inc. stock, see the JP:2695 Stock Forecast page.

Kura Sushi Announces Two-for-One Stock Split and Adjusted Dividend Forecast

Kura Sushi, Inc. will execute a two-for-one stock split of its common shares, effective May 1, 2026, aiming to improve liquidity and lower the investment unit to broaden its shareholder base. In conjunction, the company will double its authorized share capital from 160 million to 320 million shares and adjust the year-end dividend forecast per share from ¥30 to ¥15 to reflect the split, with no real change in total shareholder payout or stated capital, signaling a largely technical move rather than a shift in capital policy.

The board-approved measures are designed to make Kura Sushi’s stock more accessible to smaller investors while preserving overall dividend value on a post-split basis. These actions may enhance marketability and trading volume of the shares, while the unchanged economic value of dividends and capital structure suggests limited immediate financial impact for existing shareholders beyond increased share count and potentially improved liquidity.

The most recent analyst rating on (JP:2695) stock is a Hold with a Yen3723.00 price target. To see the full list of analyst forecasts on Kura Sushi, Inc. stock, see the JP:2695 Stock Forecast page.

Kura Sushi Announces Dividend Distribution for 2025

Kura Sushi, Inc. has announced a resolution to distribute dividends of surplus, with a dividend per share of 20 yen for the record date of October 31, 2025, maintaining the same amount as the latest forecast. This decision aligns with the company’s policy of stable profit distribution while ensuring a sound financial position for future business development.

The most recent analyst rating on (JP:2695) stock is a Hold with a Yen3731.00 price target. To see the full list of analyst forecasts on Kura Sushi, Inc. stock, see the JP:2695 Stock Forecast page.

Kura Sushi Reports Fiscal Year 2025 Financial Results with Mixed Profit Trends

Kura Sushi, Inc. reported its consolidated financial results for the fiscal year ending October 31, 2025, showing a 4.3% increase in net sales to ¥245,109 million. Despite this growth, the company experienced a decline in operating and ordinary profits by 4.2% and 0.7% respectively, while profit attributable to owners rose by 11.8%. The financial outlook for the next fiscal year anticipates further growth in net sales but a decrease in profits, reflecting potential challenges in maintaining profitability amidst rising sales.

The most recent analyst rating on (JP:2695) stock is a Hold with a Yen3731.00 price target. To see the full list of analyst forecasts on Kura Sushi, Inc. stock, see the JP:2695 Stock Forecast page.