Kura Sushi, Inc. (2695) AI Stock Analysis

• Market Cap: ¥135.03B
• Dividend Yield: 0.63%
• Average Volume (3M): 293.68K
• Price to Earnings (P/E): 37.5
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥3,271.00 ▲(4.01% Upside)

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

Revenue Growth

The company's robust revenue growth indicates a strong market position and effective business model, supporting long-term expansion potential.

Cost Management

Efficient cost management, as reflected in a healthy gross margin, enhances profitability and competitive advantage over time.

Cash Generation

Strong cash generation from operations ensures liquidity and financial flexibility, supporting sustainable growth and investment capacity.

Negative Factors

Net Profit Margin

A low net profit margin indicates potential challenges in profitability, which could impact long-term financial health if not addressed.

Rising Debt Levels

Rising debt levels may strain future cash flows and limit strategic flexibility, posing a risk to financial stability if not managed effectively.

Free Cash Flow Decline

A decline in free cash flow growth suggests potential challenges in maintaining liquidity, impacting the ability to fund growth initiatives.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	242.73B	245.11B	234.95B	211.41B	183.05B	147.59B
Gross Profit	143.82B	145.18B	139.23B	119.23B	100.53B	80.80B
EBITDA	13.72B	15.36B	15.24B	11.32B	9.76B	9.35B
Net Income	2.25B	3.61B	3.23B	863.00M	744.00M	1.90B
Balance Sheet
Total Assets	153.40B	156.01B	139.45B	130.12B	109.62B	98.99B
Cash, Cash Equivalents and Short-Term Investments	24.51B	26.37B	23.04B	20.19B	13.17B	18.75B
Total Debt	35.05B	40.97B	37.46B	35.00B	28.51B	21.95B
Total Liabilities	68.44B	69.75B	66.50B	59.55B	50.66B	44.33B
Stockholders Equity	64.41B	64.97B	58.35B	55.54B	51.04B	48.59B
Cash Flow
Free Cash Flow	0.00	4.63B	7.78B	1.41B	-586.00M	-3.68B
Operating Cash Flow	0.00	14.87B	18.36B	13.73B	9.94B	4.74B
Investing Cash Flow	0.00	-18.55B	-10.35B	-14.54B	-12.11B	-9.48B
Financing Cash Flow	0.00	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: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3389.75, below the 50-day MA of 3328.50, and below the 200-day MA of 3444.68, indicating a neutral trend. The MACD of 26.35 indicates Positive momentum. The RSI at 54.27 is Neutral, neither overbought nor oversold. The STOCH value of 44.83 is Neutral, 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	¥55.08B	11.63	―	2.41%	6.49%	4.27%
8153	70 Outperform	¥129.97B	30.95	―	0.70%	5.15%	47.13%
7630	66 Neutral	¥143.18B	50.66	―	1.71%	9.51%	6.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7421	58 Neutral	¥77.90B	59.99	―	0.32%	0.51%	4.92%
2695	58 Neutral	¥135.03B	37.53	―	0.63%	4.32%	11.78%
9861	53 Neutral	¥197.62B	51.80	―	0.69%	10.75%	-14.28%

Kura Sushi, Inc. Corporate Events

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.