The Kura Sushi, Inc. (TSE:2695) Full-Year Results Are Out And Analysts Have Published New Forecasts

Shareholders might have noticed that Kura Sushi, Inc. (TSE:2695) filed its yearly result this time last week. The early response was not positive, with shares down 6.4% to JP¥3,170 in the past week. Kura Sushi reported in line with analyst predictions, delivering revenues of JP¥245b and statutory earnings per share of JP¥90.74, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Kura Sushi's five analysts is for revenues of JP¥259.7b in 2026. This reflects an okay 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 18% to JP¥107. Before this earnings report, the analysts had been forecasting revenues of JP¥259.2b and earnings per share (EPS) of JP¥108 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Kura Sushi

The analysts reconfirmed their price target of JP¥3,075, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Kura Sushi at JP¥3,700 per share, while the most bearish prices it at JP¥2,600. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Kura Sushi's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Kura Sushi is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kura Sushi's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥3,075, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Kura Sushi. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kura Sushi analysts - going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Kura Sushi .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.