Kura Sushi, Inc. (2695) AI Stock Analysis

• Market Cap: ¥141.18B
• Dividend Yield: 0.56%
• Average Volume (3M): 296.42K
• Price to Earnings (P/E): 114.8
• Beta (1Y): 0.64
• Revenue Growth: 4.82%
• EPS Growth: -79.12%
• Country: JP
• Employees: 2,824
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Restaurants
• EPS (TTM): 26.01
• Shares Outstanding: 41,399,600
• 10 Day Avg. Volume: 253,060
• 30 Day Avg. Volume: 296,416
• PEG Ratio: -0.90
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.65
• 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: ¥3,298.50
• Price Target Upside: -7.35% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: ¥3,791.00 ▲(6.49%Upside)

Kura Sushi, Inc. benefits from strong financial performance, including robust revenue growth and effective cash management, which are the most significant factors in its score. However, the technical analysis indicates potential overbought conditions, and the high valuation presents a risk if growth expectations are not met. The absence of earnings call insights or notable corporate events means these factors did not influence the score.

Kura Sushi, Inc. Business Overview & Revenue Model

Company Description

Kura Sushi, Inc. (2695) is a Japan-based company that operates a chain of sushi restaurants offering a unique dining experience. The company is known for its use of a revolving sushi concept, where dishes are placed on a conveyor belt that circulates throughout the restaurant. Kura Sushi is part of the broader food service industry, focusing on providing high-quality, affordable sushi and Japanese cuisine to customers. The company's core services include dine-in experiences at its restaurants, which emphasize efficiency, innovation, and customer engagement through technology.

How the Company Makes Money

Kura Sushi, Inc. generates revenue primarily through sales from its chain of sushi restaurants. The key revenue streams include direct sales of sushi and other menu items to customers dining in its establishments. The company's unique selling proposition lies in its revolving sushi concept and the use of technology to enhance the customer experience, which helps attract a steady flow of patrons. Additionally, the company may benefit from partnerships and collaborations with other entities in the food service and technology sectors, which can enhance its market presence and operational efficiency. Kura Sushi's ability to maintain competitive pricing while delivering quality products is critical to its financial performance.

Kura Sushi, Inc. Financial Statement Overview

Summary

Kura Sushi, Inc. displays strong financial health with notable revenue growth and high gross margins. Improved profitability is evident with enhanced net profit margins and operational efficiency. The balance sheet reflects financial stability despite moderate leverage, while cash flow performance is impressive, indicating effective cash management.

Income Statement

Kura Sushi, Inc. shows robust revenue growth, with a 11.1% increase from 2023 to 2024, indicating a strong business trajectory. The gross profit margin has been consistently high, reaching 59.3% in 2024, demonstrating effective cost management. Net profit margin improved significantly to 1.4% in 2024 from 0.4% in the previous year, highlighting enhanced profitability. The EBIT and EBITDA margins have also improved year-on-year, indicating operational efficiency gains.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 41.8%, reflecting financial stability. However, the debt-to-equity ratio stands at 0.64, suggesting moderate leverage which could pose risks if not managed carefully. Return on equity is relatively low at 5.5%, indicating room for improvement in generating returns from shareholders' equity.

Cash Flow

Free cash flow grew substantially by 451.0% from 2023 to 2024, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is robust at 5.7, indicating efficient cash conversion. The free cash flow to net income ratio improved significantly, pointing to effective capital management and investment strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	230.23B	234.95B	211.41B	183.05B	147.59B	135.84B
Gross Profit	136.32B	139.23B	119.23B	100.53B	80.80B	74.93B
EBITDA	16.86B	15.24B	11.32B	6.52B	9.56B	5.64B
Net Income	5.95B	3.23B	863.00M	1.08B	1.42B	-1.01B
Balance Sheet
Total Assets	144.64B	139.45B	130.12B	109.62B	98.99B	85.10B
Cash, Cash Equivalents and Short-Term Investments	23.52B	23.04B	20.19B	13.17B	18.75B	20.61B
Total Debt	33.80B	37.46B	35.00B	28.51B	21.95B	15.04B
Total Liabilities	67.61B	66.50B	59.55B	50.66B	44.33B	37.54B
Stockholders Equity	60.88B	58.35B	55.54B	51.04B	48.59B	44.33B
Cash Flow
Free Cash Flow	5.35B	7.78B	1.41B	-586.00M	-3.68B	1.70B
Operating Cash Flow	5.35B	18.36B	13.73B	9.94B	4.74B	8.94B
Investing Cash Flow	0.00	-10.35B	-14.54B	-12.11B	-9.48B	-8.34B
Financing Cash Flow	0.00	-4.01B	5.50B	-4.70B	2.46B	-1.16B

Kura Sushi, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3560.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3560 is above the 20-day moving average (MA) of 3477.50, above the 50-day MA of 3287.60, and above the 200-day MA of 3317.97, indicating a bullish trend. The MACD of 83.52 indicates Negative momentum. The RSI at 65.00 is Neutral, neither overbought nor oversold. The STOCH value of 72.99 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	76 Outperform	¥69.16B	13.90		2.05%	9.11%	52.03%
8153	70 Outperform	¥114.40B	36.34		0.81%	3.36%	22.37%
7630	69 Neutral	¥147.17B	45.33		1.74%	10.63%	22.33%
2695	64 Neutral	¥141.18B	114.75		0.56%	4.82%	-79.12%
7421	63 Neutral	¥73.27B	71.01		0.34%	1.40%	-26.08%
Sector *	62 Neutral	AU$2.84B	27.14	5.13%	5.15%	2.35%	-31.70%
9861	54 Neutral	¥216.83B	56.15		0.60%	9.92%	-26.57%

Kura Sushi, Inc. Corporate Events

Kura Sushi Reports Decline in Profits Despite Sales Growth

Kura Sushi, Inc. reported its consolidated financial results for the six months ending April 30, 2025, showing a slight increase in net sales by 1.3% to ¥117,625 million. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with drops of 48.5%, 50.1%, and 50.5% respectively. This downturn reflects challenges in maintaining profitability despite increased sales, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (JP:2695) stock is a Hold with a Yen3800.00 price target. To see the full list of analyst forecasts on Kura Sushi, Inc. stock, see the JP:2695 Stock Forecast page.