| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 619.23 | -16 |
| Intrinsic value (DCF) | 1011.53 | 37 |
| Graham-Dodd Method | 42.63 | -94 |
| Graham Formula | 199.55 | -73 |
Create Restaurants Holdings Inc. (3387.T) is a leading Japanese restaurant operator specializing in diverse dining concepts, including food courts, izakaya bars, and themed restaurants. Headquartered in Tokyo, the company manages over 1,037 restaurants under 244 distinct brands, covering Japanese, Western, Chinese, and ethnic cuisines. Key brands include Hina-Sushi, Shabu Sai, Harvest, and Toriyoshi, catering to varied consumer preferences. The company’s strategic focus on multi-brand diversification and operational efficiency has solidified its position in Japan’s competitive casual dining sector. With a strong presence in seafood, ramen, and Italian cuisine, Create Restaurants leverages localized branding and scalable formats to drive growth. Its asset-light model and extensive footprint make it a resilient player in Japan’s ¥30 trillion food service industry. Investors value its stable cash flows and adaptability to shifting consumer trends, particularly in urban dining hubs.
Create Restaurants Holdings presents a moderate-risk investment with steady growth potential in Japan’s fragmented restaurant market. The company’s diversified brand portfolio mitigates reliance on any single concept, while its ¥156.4B revenue (FY2025) reflects recovery post-pandemic. A low beta (0.12) suggests defensive characteristics, but high debt (¥67.7B) and thin net margins (3.6%) pose risks. Positive operating cash flow (¥25.99B) supports its ¥8/share dividend, yielding ~1.1%. Expansion opportunities lie in suburban food courts and digital integration, though labor shortages and input cost inflation remain headwinds. Trading at ~14x diluted EPS (¥26.57), it’s reasonably priced versus peers.
Create Restaurants’ competitive edge stems from its multi-brand strategy, enabling cross-segment penetration without cannibalization. Unlike single-concept chains, its 244 brands—from budget izakayas (Isomaru-suisan) to mid-range sushi (Hina-Sushi)—cater to demographic and regional nuances. Operational synergies in procurement and shared kitchen infrastructure reduce costs, though complexity in managing diverse menus may dilute efficiency. The company’s 24-hour seafood izakaya format (Isomaru-suisan) outperforms competitors in urban nightlife districts, while regional brands like Kagonoya capture suburban demand. However, it lacks the international footprint of rivals like Zensho Holdings and faces pricing pressure from convenience store meal solutions. Its digital adoption lags behind tech-forward peers such as Colowide, but its asset-light franchising model provides scalability. The main vulnerability is exposure to Japan’s aging population, which may shrink the core izakaya demographic.