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Mita Securities

Research from Mita Securities

Mita Securities provides a full scale diversified investment banking and financial services. A comprehensive investment banking department, specializes in rights offerings advisory, take-over bids agents, M&A etc. Including a proprietary trading desk, and wealth management department that offers brokerage, custody, real estate, and full proxy services.

Equity Bottom-Up

<ul><li>Kura Sushi (2695, the company) announced 1H FY10/22 (Nov-Apr) results, with sales of 89.312bn yen (+19.7% YoY), OP 323m yen (-24.6% YoY), and RP 3.507bn yen (+196.0% YoY)</li><li>In Japan, 1H sales were 74.995bn yen (+11.8% YoY) and RP was 3.167bn yen (+69.7%YoY). The number of stores was up +8% YoY</li><li>The number of stores at the end of 1H was 593 (+26 from end-FY10/21)</li></ul>

Kura Sushi (2695, the company) announced 1H FY10/22 (Nov-Apr) results, with sales of 89.312bn yen (+19.7% YoY), OP 323m yen (-24.6% YoY), and RP 3.507bn yen (+196.0% YoY)In Japan, 1H sales were 74.995bn yen (+11.8% YoY) and RP was 3.167bn yen (+69.7%YoY). The number of stores was up +8% YoYThe number of stores at the end of 1H was 593 (+26 from end-FY10/21)

Kura Sushi (2695): Aggressive Operations Continued Through 2Q

<ul><li>Same-store sales were in line with the pre-pandemic levels, and our impression is neutral.</li><li>Same-store sales of other revolving sushi formats in April (compared to April 2021 and April 2019) were 105.3% and 104.2% for Sushiro (Food &amp; Life Companies), 108.4% and 94.5% for Genki Sushi, and 103.7% and 87.1% for Kappa Sushi, respectively.</li><li>The number of stores at the end of April was 512 in Japan (+2MoM), 37 in the U.S. (+/-0 MoM), and 45 in Taiwan (+/-0 MoM)</li></ul>

Same-store sales were in line with the pre-pandemic levels, and our impression is neutral.Same-store sales of other revolving sushi formats in April (compared to April 2021 and April 2019) were 105.3% and 104.2% for Sushiro (Food &amp; Life Companies), 108.4% and 94.5% for Genki Sushi, and 103.7% and 87.1% for Kappa Sushi, respectively.The number of stores at the end of April was 512 in Japan (+2MoM), 37 in the U.S. (+/-0 MoM), and 45 in Taiwan (+/-0 MoM)

Kura Sushi (2695): Detective Conan in April, Dragon Ball in May

Independent Research, US Dominant Players, Investment Talk

Investment Talk

Independent Research, US Dominant Players

Investment Talk is for readers who wish to learn about companies that are potentially outside of their own circle of research, as well as those who are longing to become part of a community of like-minded investors and learn more about investment research. I would describe myself as a long-term investor who typically takes a 3Y to 5Y outlook, before reassessing once that period matures. I follow the adage that one should research, reach a conclusion, and then verify and continue to hold so long as the thesis remains intact. My own investing style is one that seeks to find dominant players within their respective market who have shown signs of monopoly or oligopolistic behaviour, unlikely to be disrupted, in tandem with discovering market disruptors who have a high likelihood of disrupting their respective market. Equally (and weighted accordingly) I seek to discover more nuanced, misunderstood, situations with a shorter time frame.

<ul><li>Kura Sushi is a dinky (~$540M market cap) sushi business that I have reported on for a little over one year.</li><li>The US subsidiary is das kind (German for ‘the child’ because, why not) of a well-capitalised parent with over 450 stores in Japan.</li><li>It’s a proof of concept venture in a new market, with a tried-and-tested business model, and a parent that provides ample liquidity to its fledging offspring.</li></ul>

Kura Sushi is a dinky (~$540M market cap) sushi business that I have reported on for a little over one year.The US subsidiary is das kind (German for ‘the child’ because, why not) of a well-capitalised parent with over 450 stores in Japan.It’s a proof of concept venture in a new market, with a tried-and-tested business model, and a parent that provides ample liquidity to its fledging offspring.

<ul><li>March SSS: 106.3% vs. 2021, 103.7% vs. 2019 (pre-pandemic)</li><li>Same-store sales of other revolving sushi formats in March (compared to March 2021 and March 2019) were 93.5% and 96.8% for Sushiro (Food &amp; Life Companies), 104.4% and 89.9% for Genki Sushi, and 89.7% and 82.2% for Kappa Sushi, respectively</li><li>The number of stores at the end of February was 510 in Japan (+3 MoM), 37 in the U.S. (+1 MoM), and 45 in Taiwan (+1 MoM). The total number of stores was 592 (+5 MoM)</li></ul>

March SSS: 106.3% vs. 2021, 103.7% vs. 2019 (pre-pandemic)Same-store sales of other revolving sushi formats in March (compared to March 2021 and March 2019) were 93.5% and 96.8% for Sushiro (Food &amp; Life Companies), 104.4% and 89.9% for Genki Sushi, and 89.7% and 82.2% for Kappa Sushi, respectivelyThe number of stores at the end of February was 510 in Japan (+3 MoM), 37 in the U.S. (+1 MoM), and 45 in Taiwan (+1 MoM). The total number of stores was 592 (+5 MoM)

Kura Sushi (2695): Conan & Crab Popular in March; Kura Sushi Is Becoming a Food Amusement Park

<ul><li>OP successfully on track with company target despite large-scale promotions</li><li>Segment earnings: Japan, US, and Taiwan entering full-scale recovery phase</li><li>Large-scale collaboration with Detective Conan in March and April</li></ul>

OP successfully on track with company target despite large-scale promotionsSegment earnings: Japan, US, and Taiwan entering full-scale recovery phaseLarge-scale collaboration with Detective Conan in March and April

Kura Sushi (2695): Solid 1Q Results. Building Competitive Advantage Through Differentiation

Japan

KURA CORPORATION operates a revolving sushi restaurant chain based in Osaka. The Company operates its own stores.

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Kura Sushi Inc (2695 JP)

Kura Sushi (2695): Aggressive Operations Continued Through 2Q

Kura Sushi (2695, the company) announced 1H FY10/22 (Nov-Apr) results, with sales of 89.312bn yen (+19.7% YoY), OP 323m yen (-24.6% YoY), and RP...

Mita Securities

Kura Sushi (2695): Detective Conan in April, Dragon Ball in May

Same-store sales were in line with the pre-pandemic levels, and our impression is neutral. Same-store sales of other revolving sushi formats in...

Mita Securities

KRUS: Kura's Roll Keeps Rolling

Kura Sushi is a dinky (~$540M market cap) sushi business that I have reported on for a little over one year. The US subsidiary is das kind (German...

Investment Talk

Kura Sushi (2695): Conan & Crab Popular in March; Kura Sushi Is Becoming a Food Amusement Park

March SSS: 106.3% vs. 2021, 103.7% vs. 2019 (pre-pandemic). Same-store sales of other revolving sushi formats in March (compared to March 2021 and...

Mita Securities

Kura Sushi (2695): Solid 1Q Results. Building Competitive Advantage Through Differentiation

OP successfully on track with company target despite large-scale promotions. Segment earnings: Japan, US, and Taiwan entering full-scale recovery...

Mita Securities

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