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.

Equity Bottom-Up

<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.

Research from Mita Securities, Mita Securities

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.

<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

<ul><li>February SSS: 99.1% vs. 2021, 95.8% vs. 2019 (pre-pandemic)</li><li>Revolving sushi continues to enjoy competitive advantage even in a difficult environment</li><li>Continuing store openings in Japan, the U.S., and Taiwan</li></ul>

February SSS: 99.1% vs. 2021, 95.8% vs. 2019 (pre-pandemic)Revolving sushi continues to enjoy competitive advantage even in a difficult environmentContinuing store openings in Japan, the U.S., and Taiwan

Kura Sushi (2695): February Same-Store Sales Flat YoY Due to Omicron

<ul><li>On February 3, Kura Sushi (2695, the company) disclosed monthly data for January (on a preliminary basis)</li><li>The company ran a special fair using high-end ingredients in early January and has been running a "BT21" campaign from January to February.</li><li>BT21 is a globally popular character brand created through a collaboration between LINE FRIENDS and BTS (Bangtan Sonyeondan)</li></ul>

On February 3, Kura Sushi (2695, the company) disclosed monthly data for January (on a preliminary basis)The company ran a special fair using high-end ingredients in early January and has been running a "BT21" campaign from January to February.BT21 is a globally popular character brand created through a collaboration between LINE FRIENDS and BTS (Bangtan Sonyeondan)

Kura Sushi (2695): Relay from Demon Slayer to BTS. Winning with Entertainment Value

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)

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

Kura Sushi (2695): February Same-Store Sales Flat YoY Due to Omicron

February SSS: 99.1% vs. 2021, 95.8% vs. 2019 (pre-pandemic). Revolving sushi continues to enjoy competitive advantage even in a difficult environment

Mita Securities

Kura Sushi (2695): Relay from Demon Slayer to BTS. Winning with Entertainment Value

On February 3, Kura Sushi (2695, the company) disclosed monthly data for January (on a preliminary basis). The company ran a special fair using...

Mita Securities

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