Food & Life Companies: Deep dive: Marked growth overseas

研报英文原文证据摘录

Food & Life Companies: Deep dive: Marked growth overseas

Global Markets Research

21 July 2026Food & Life Companies

3563.T 3563 JP / EQUITY: JAPAN RETAILING

RatingDeep dive: Marked growth overseas From Suspended Buy

Target price JPY 6,600 From N/AAcceleration in earnings growth overseas, mainly in China

Closing price

We assign a Buy rating, focus on overseas growth 16 July 2026 JPY 5,423

We assign a Buy rating and ¥6,600 target price on Food & Life Companies. Business

expansion at Japanese restaurant operators looks to have come to a standstill because of Implied upside +21.7%

headwinds such as cost inflation and population decline. Against this backdrop, we take a

positive view of the company as one of the very few to achieve high growth overseas. We

expect operating profits at the Sushiro overseas segment to exceed those at the Sushiro

Relative performance chartJapan segment in 26/9. With plenty of scope for store openings in China and the company

having established a framework for new store openings, we think it will be able to open a

large number of stores in the near term, thereby driving earnings.

We obtain ¥6,600 target price via P/E of 36.4x our 27/9 EPS forecast

We obtain our target price of ¥6,600 by multiplying our 27/9 EPS forecast of ¥180.9 by a

fair-value P/E of 36.4x. We arrive at our fair-value P/E by applying a 20% premium to the

30.3x P/E on FY27 forecasts for the Russell/Nomura Large Cap retail trade sector. We

expect the Sushiro overseas segment to drive earnings, and forecast operating profit

CAGR of 13% for 28–30/9. However, our FY28 operating profit growth forecast for the

Russell/Nomura Large Cap retail trade sector is 7%. Assuming the Russell/Nomura Large

Cap retail trade sector's profit growth continues at the FY28 level, we think the company's