create restaurants holdings inc. (3387) AI Stock Analysis

• Market Cap: ¥313.42B
• Dividend Yield: 0.56%
• Average Volume (3M): 747.45K
• Price to Earnings (P/E): 60.4
• Beta (1Y): 0.24
• Revenue Growth: 9.28%
• EPS Growth: 7.59%
• Country: JP
• Employees: 4,205
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 7.59
• Shares Outstanding: 425,628,570
• 10 Day Avg. Volume: 862,030
• 30 Day Avg. Volume: 747,450
• PEG Ratio: 4.32
• Price to Book (P/B): 6.53
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 11.61
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥818.00 ▲(5.41% Upside)

The score is primarily driven by a mixed financial profile: strong revenue growth and positive profitability/cash generation are tempered by thin margins, elevated leverage, and weakening free cash flow growth. Technicals are moderately supportive with price above key moving averages and healthy (not overbought) momentum. Valuation is the largest headwind due to a high P/E and low dividend yield.

Positive Factors

Revenue Growth

Sustained top-line growth implies strengthening customer demand and successful unit or same-store expansion. Over 2-6 months this supports reinvestment in menu, locations and marketing, improving long-term scale economics and bargaining power with suppliers.

Positive Cash Generation

Material operating and free cash flow provide durable internal funding for capex, working capital and selective expansion without heavy reliance on new equity. This reduces dilution risk and supports operational continuity through economic cycles.

Rebuilding Equity / Solid ROE

Improving equity and solid recent ROE indicate management is restoring capital resilience and generating acceptable returns on invested capital. This enhances long-term financial flexibility and credibility with lenders and franchising partners.

Negative Factors

Elevated Leverage

Meaningful leverage increases sensitivity to interest-rate moves and economic slowdowns. With debt heavier than ideal for a consumer-facing operator, higher funding costs or traffic declines could quickly strain liquidity and limit strategic options.

Thin and Compressed Margins

Narrow and shrinking operating/net margins reduce the company's cushion against input cost inflation or promotional pressure. Persistently tight margins constrain reinvestment, slow deleveraging, and make earnings more cyclical over the medium term.

Weakening Free Cash Flow Growth

Declining free cash flow growth erodes the firm's ability to accelerate debt paydown, fund expansion, or increase shareholder returns. Over several quarters this worsens leverage metrics and could force external financing or cuts to strategic initiatives.

create restaurants holdings inc. Business Overview & Revenue Model

Company Description

create restaurants holdings inc. plans, develops, and manages food courts, izakaya bars, and dinner-time restaurants in Japan. The company operates a range of restaurants, including Japanese, Western, Chinese, and ethnic cuisines primarily under the Hina-Sushi, Shabu Sai, Harvest, Hong Kong Chonron, TANTO TANTO, Yasia-ya Mei, Kichiza, and Kagonoya brands. It also operates Toriyoshi, a poultry-specialty izakaya bar; Isomaru-suisan, a 24-hour seafood izakaya bar; and Ichigoro, a specialty dumpling izakaya bar, as well as restaurants under the ramen brand. In addition, the company operates Italian restaurants. As of February 2022, it operated 1,037 restaurants under 244 brands. create restaurants holdings inc. was incorporated in 1997 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Create Restaurants Holdings Inc. generates revenue primarily through the operation of its restaurant chains. Key revenue streams include food and beverage sales, catering services, and franchise fees from partner restaurants. The company also benefits from strategic partnerships with suppliers and distributors, which help secure favorable pricing and enhance supply chain efficiency. Additionally, seasonal promotions, loyalty programs, and special events contribute to increased customer traffic and sales, bolstering the company's overall earnings.

create restaurants holdings inc. Financial Statement Overview

Summary

Income statement strength (revenue growth and positive EBIT/net income) is offset by thin and recently compressed operating/net margins. Balance sheet leverage remains elevated with debt exceeding equity, reducing flexibility. Cash flow is positive, but free cash flow growth has turned negative and debt coverage is not especially strong.

Income Statement

TTM (Trailing-Twelve-Months) revenue is strong with very high growth versus the prior annual period, and profitability is positive (EBIT and net income). Gross margin remains healthy, but operating and net margins are thin for the category and have compressed versus recent annual levels, indicating higher costs and/or promotional intensity. The business has also shown that earnings can swing materially in weaker environments (losses in 2021), which tempers the quality-of-earnings profile.

Balance Sheet

Leverage is meaningful: total debt exceeds equity and debt-to-equity remains elevated (though improving versus prior years), which increases sensitivity to rates and any downturn in traffic. Equity has been rebuilding and returns on equity are solid in the most recent periods, but the capital structure still looks heavier than ideal for a consumer-facing operator, leaving less flexibility if margins soften.

Cash Flow

Cash generation is generally supportive: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are positive and substantial, and cash flow conversion relative to earnings is decent. However, free cash flow growth has turned negative in the TTM period, and operating cash flow coverage is not particularly strong versus the company’s debt load, implying less cushion if funding costs rise or investment needs increase.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	164.52B	156.35B	145.76B	118.24B	78.32B	74.42B
Gross Profit	104.26B	95.86B	103.83B	85.01B	56.33B	53.19B
EBITDA	24.35B	24.04B	22.75B	20.29B	24.20B	2.98B
Net Income	5.17B	5.59B	5.04B	3.38B	5.92B	-13.87B
Balance Sheet
Total Assets	139.26B	137.17B	130.82B	133.56B	133.60B	161.97B
Cash, Cash Equivalents and Short-Term Investments	17.38B	21.47B	21.30B	24.39B	21.81B	37.59B
Total Debt	66.13B	67.70B	67.77B	75.53B	84.53B	119.03B
Total Liabilities	91.96B	93.18B	91.45B	99.11B	102.88B	138.70B
Stockholders Equity	43.36B	40.17B	35.97B	29.61B	26.14B	19.41B
Cash Flow
Free Cash Flow	17.98B	22.58B	19.87B	22.78B	25.71B	-3.00B
Operating Cash Flow	22.62B	25.99B	23.29B	24.59B	27.11B	409.00M
Investing Cash Flow	-5.43B	-9.20B	-3.60B	-2.31B	-759.00M	-3.85B
Financing Cash Flow	-21.21B	-16.66B	-22.50B	-20.13B	-42.21B	22.84B

create restaurants holdings inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 776.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3387, the sentiment is Negative. The current price of 776 is above the 20-day moving average (MA) of 764.25, above the 50-day MA of 770.18, and above the 200-day MA of 750.59, indicating a bearish trend. The MACD of -10.39 indicates Positive momentum. The RSI at 37.58 is Neutral, neither overbought nor oversold. The STOCH value of 29.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3387.

create restaurants holdings inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7581	67 Neutral	¥306.00B	26.53	9.66%	0.55%	14.33%	36.83%
9936	66 Neutral	¥190.11B	21.20	―	1.65%	9.59%	8.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3387	59 Neutral	¥313.42B	60.38	―	0.56%	9.28%	7.59%
3397	56 Neutral	¥367.01B	72.59	―	0.24%	9.19%	43.90%
7616	54 Neutral	¥187.86B	86.09	―	0.29%	8.99%	61.95%
9861	53 Neutral	¥197.62B	51.80	―	0.69%	10.75%	-14.28%

create restaurants holdings inc. Corporate Events

Create Restaurants to Acquire Osaka’s RON Corporation and Expand Western Cuisine Portfolio

Create Restaurants Holdings Inc. has agreed to acquire all shares of Osaka-based RON Corporation, operator of 10 Yoshoku and pork steak restaurants including long-established “Grill RON” and “Osaka Tonteki,” for a total consideration of 963 million yen, making RON a wholly owned consolidated subsidiary. By leveraging its own property development know-how and management systems, the group aims to boost RON’s established brand value in the Osaka/Umeda area, deepen its Western cuisine offerings for everyday dining, strengthen its brand portfolio by cultivating RON as a “Next Core Brand,” and explore in-group franchise development, with management indicating that the impact on earnings for the current fiscal year will be negligible but that the transaction is expected to enhance long-term corporate value and regional market presence.

The most recent analyst rating on (JP:3387) stock is a Buy with a Yen854.00 price target. To see the full list of analyst forecasts on create restaurants holdings inc. stock, see the JP:3387 Stock Forecast page.

create restaurants holdings posts higher sales but lower profits, maintains dividend outlook after stock split

For the nine months to 30 November 2025, create restaurants holdings inc. posted a 7.1% year-on-year rise in consolidated revenue to ¥123.6 billion, but operating profit fell 7.4% to ¥6.6 billion and profit attributable to owners of the parent declined 9.0% to ¥4.3 billion, resulting in lower earnings per share despite modest growth in adjusted EBITDA. The company strengthened its balance sheet, with total assets and equity attributable to owners of the parent both increasing and the equity ratio improving to 31.1%, and it maintained its dividend policy while factoring in a 2-for-1 stock split effective September 2025, implying a full-year dividend equivalent to ¥9.0 per pre-split share. For the full year ending February 2026, management forecasts revenue of ¥165.0 billion and a double-digit increase in operating and pretax profit, alongside a planned year-end dividend that reflects the split-adjusted share base, while also expanding its consolidation scope through the addition of Noroshi Co., Ltd., signaling continued portfolio growth and disciplined capital returns.

The most recent analyst rating on (JP:3387) stock is a Buy with a Yen854.00 price target. To see the full list of analyst forecasts on create restaurants holdings inc. stock, see the JP:3387 Stock Forecast page.

Create Restaurants Holdings Outlines FY2026 Q3 Results and Medium-Term Strategy

Create Restaurants Holdings Inc. released supplementary materials for its fiscal 2026 third-quarter financial results prepared under IFRS, providing an overview of performance by business category, including its core CR and SFP segments, specialty brands, and overseas operations. The disclosure outlines financial highlights, the framework of a new medium-term management plan, updates on store openings and closures, same-store sales trends, sustainability initiatives, and policies on full-year business forecasts and shareholder returns, signaling management’s focus on portfolio optimization, disciplined growth, and enhanced value delivery to shareholders and other stakeholders.

The most recent analyst rating on (JP:3387) stock is a Buy with a Yen854.00 price target. To see the full list of analyst forecasts on create restaurants holdings inc. stock, see the JP:3387 Stock Forecast page.