Food & Life (Sushiro) FY4Q26 preview: Another beat yet a high bar for FY27

Bernstein's FY4Q26 preview expects Food & Life (Sushiro; 3563.JP) to report operating profit about 5% above consensus, supported by solid revenue growth, favorable business mix and FX tailwinds. Japan remains resilient, with quarterly revenue likely up around 10% on continued LFL traffic growth and ASP gains. International is the key growth driver, led by mainland China, where JPY revenue is likely to increase more than 150% YoY on rapid store expansion and currency support; other overseas markets are forecast to grow about 25%. FY27 consensus of JPY63bn appears achievable and potentially beatable, but guidance risk remains high given the company's conservative approach and consensus already embedding more than 20% earnings growth. Bernstein's proprietary queue-length monitor points to healthy demand and a path to 400-500 stores in China. The broker rates the stock Outperform with a JPY7,900 target price, based on 35x NTM+1 earnings.