Kura Sushi, Inc.
2695・Prime Market・Retail Trade
Business
Kura Sushi, Inc. operates a rotating sushi restaurant chain consisting solely of company-owned stores, based on its unique food philosophy of eliminating the "four major additives"—chemical seasonings, artificial sweeteners, synthetic colorings, and artificial preservatives—from all ingredients since its founding. Its core business consists of 547 domestic stores (including 5 "Mutenzo" stores and 1 "Kura Osakana Market" store), supplemented by its US-listed subsidiary Kura Sushi USA (79 stores) and its Taiwan-listed subsidiary Kura Sushi Asia (亞洲藏壽司, 60 stores), operating a total of 687 stores worldwide (all company-owned) as of the end of FY2025 (ending October 2025). Its main customer base is a broad range of consumers centered on families, and it offers a unique dining experience combining entertainment elements such as "Bikkura Pon!" (a prize game triggered by returning plates) and the rotating conveyor lane with a commitment to safe and reliable ingredients.
Business Model
By operating all stores directly with no franchising whatsoever, the company enforces high-level quality and hygiene management across all outlets, including the absence of the four major food additives, the antibacterial sushi cover "Sendo-kun," and clean tables. The majority of net sales of ¥245,109 million (FY2025, ending October 2025) consists of food and beverage sales, with cost control handled through flexible product design and a management structure that integrates head office and store-level operations. The company secures profitability by combining efficient store operations driven by AI and DX promotion with enhanced customer traffic through IP collaborations and high value-added fairs.
Company Strengths
Since its founding, the company has completely eliminated the four major food additives—chemical seasonings, artificial sweeteners, synthetic coloring agents, and artificial preservatives—from all ingredients. Initiatives toward safety and reliability, such as the company-wide rollout of the patented antibacterial sushi cover "Sendo-kun" (completed in 2011) and the alum-free "Shinmono Uni" (sea urchin), serve as a clear differentiating factor from competitors.
As of the end of FY2025 (ending October 2025), the company operated a total of 687 directly-managed stores: 547 in Japan, 79 in the United States, and 60 in Taiwan, all run as company-owned outlets. The company completed store openings in all prefectures in Japan in July 2021, and reached 500 domestic stores in December 2021. By unifying operations under direct management, the company has achieved consistent quality and service standards.
As of the end of FY2025 (ending October 2025), the equity ratio stood at 66.6%, with the company continuing to operate essentially debt-free. Against total assets of ¥156,015 million, net assets amounted to ¥86,258 million. The commitment line (total ¥3.5 billion) remains unused, reflecting a financial foundation strong enough to fund aggressive store openings using internal capital.
ENVALITH's Perspective
Performance Trend
Revenue achieved five consecutive years of growth, rising from ¥147,592 million in FY2021 to ¥245,109 million in FY2025, and the growth trend continued into the first half of FY2026 (ending October 2026), with revenue of ¥125,253 million (+6.5% year on year). Operating profit, however, peaked at ¥5,699 million in FY2024 before declining slightly to ¥5,460 million in FY2025, and fell sharply in the first half of FY2026 (ending October 2026) to ¥2,476 million (-14.7% year on year). Externally, continued increases in raw material prices (including rice prices) and labor costs have pushed up selling, general and administrative expenses, squeezing profits. The full-year forecast of ¥5,000 million in operating profit (-8.4% year on year) implies two consecutive years of operating profit decline, raising the risk that the plateau in profitability will persist over the longer term.
Growth Strategy
A tri-polar (Japan/US/Taiwan) expansion strategy targeting worldwide sales of over ¥360 billion and 1,100+ stores in FY2030
The company is driving new store openings in urban areas such as Shimokitazawa and Okachimachi, capturing expanding inbound tourism demand. During the interim period, it opened 5 domestic stores, continuing to expand its domestic store network. The policy is to grow sales while controlling cost ratios through detailed product-by-product design.
U.S. subsidiary Kura Sushi USA (KSU) is actively expanding with a target of 16 store openings per year. During the interim period, it opened 5 stores, including the Pflugerville, Texas location. Existing store sales performed well at 108.6% year-on-year, supported by partial price revisions and popular IP collaborations (such as Kirby). Although losses continue, the sales growth rate remained high at 20.3%.
Taiwan subsidiary KSA achieved high growth of +16.3% year-on-year in sales, driven by limited-time fairs and collaboration campaigns (Sanrio Family, Crayon Shin-chan, etc.) and expanded price ranges. During the interim period, it opened the Linyuan Yanhai Road store in Kaohsiung, bringing the total to 62 stores. Ordinary income also improved significantly to ¥421 million (up 97.5% year-on-year).
The company is advancing AI-driven smart aquaculture at KURA Osakana Farm, achieving the world's first success in raising mackerel from artificial fry to a large size of approximately 800g. Sales of large fresh mackerel will begin on May 15, 2026, for a limited period at select stores. This initiative simultaneously achieves cost control through in-house procurement and product differentiation.
Last updated: July 17, 2026