Kura Sushi H1 Operating Profit Falls 15% to ¥2.48bn as Costs Squeeze Margins

Japan's leading revolving ("kaiten") sushi chain reported first-half (November 2025–April 2026) revenue of ¥125.3 billion (+6.5%), but operating profit fell 14.7% to ¥2.48 billion and net profit slipped 6.1% to ¥1.84 billion (EPS ¥23.09) as higher input and labour costs squeezed margins; it maintained full-year revenue guidance of ¥257 billion.

Conveyor-belt sushi restaurant interior — Kura Sushi Kura Sushi, Inc. · Tokyo Stock Exchange

Kura Sushi, Inc. (TSE: 2695), operator of one of Japan's largest conveyor-belt ("kaiten") sushi chains, reported first-half results on June 12, 2026 for the six months to April 2026 (fiscal year ends October). Consolidated revenue rose 6.5% year-on-year to ¥125,253 million, but operating profit fell 14.7% to ¥2,476 million, ordinary profit eased 2.5% to ¥2,917 million, and net profit attributable to owners declined 6.1% to ¥1,835 million, giving EPS of ¥23.09 (restated for a 2-for-1 stock split effective May 1, 2026).

Sales growth outpaced by rising costs

Top-line growth continued on new-store openings and resilient customer traffic, but profitability was pressured by elevated raw-material, energy and labour costs across the restaurant sector. The squeeze pulled the operating margin below year-earlier levels even as revenue set a half-year high.

Full-year guidance points to lower profit

For the full year to October 2026 Kura Sushi guided revenue of ¥257,000 million (+4.9%) but lower profits — operating profit of ¥5,000 million (−8.4%), ordinary profit of ¥5,200 million (−15.8%) and net profit of ¥3,000 million (−16.8%), equivalent to EPS of ¥37.74. Total assets stood at ¥164,369 million with an equity ratio of 39.1%.

The company plans an annual dividend equivalent to ¥30 per share before the stock split (¥15 on the post-split year-end basis). Kura Sushi continues to expand at home and overseas, including in the United States and Taiwan, pairing value pricing with technology-driven store operations.

Kura Sushi — H1 FY2026 (Oct year-end) Key Financials (J-GAAP, consolidated)
MetricH1 FY2026H1 FY2025YoY
Revenue (¥ million)125,253117,625+6.5%
Operating profit (¥ million)2,4762,903−14.7%
Ordinary profit (¥ million)2,9172,993−2.5%
Net profit (¥ million)1,8351,955−6.1%
EPS (¥)23.0924.59−6.1%
Equity ratio39.1%40.0%
FY2026 guidance — revenue (¥ million)257,000+4.9%
FY2026 guidance — operating profit (¥ million)5,000−8.4%
FY2026 guidance — net profit (¥ million)3,000−16.8%

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.