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Zensho Holdings Co Ltd (JP:7550)
:7550
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Zensho Holdings Co (7550) AI Stock Analysis

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JP:7550

Zensho Holdings Co

(7550)

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Neutral 60 (OpenAI - Gpt-5.6Sol)
Rating:60Neutral
Price Target:
¥10,731.00
▲(20.42% Upside)
Action:Reiterated
Date:08/11/26
The score is primarily supported by improving financial performance (accelerating revenue growth and higher operating margins), but is held back by weaker cash-flow quality and leverage. Technically, the trend is strong but appears overextended (very high RSI/Stoch), while valuation is a meaningful headwind due to a high P/E and low dividend yield.
Positive Factors
Revenue and margin growth
Strong multi-year revenue growth alongside expanding operating margins indicates improving scale economics and execution. If this operating leverage persists, Zensho can convert its broad sales base into stronger earnings, supporting reinvestment and competitive resilience over the next several quarters.
Negative Factors
Elevated absolute debt
Although debt-to-equity has improved, the larger absolute debt balance can still constrain financial flexibility during a downturn. Higher obligations may limit the funds available for store growth or other initiatives and leave the company more exposed to weaker operating performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin growth
Strong multi-year revenue growth alongside expanding operating margins indicates improving scale economics and execution. If this operating leverage persists, Zensho can convert its broad sales base into stronger earnings, supporting reinvestment and competitive resilience over the next several quarters.
Read all positive factors

Zensho Holdings Co (7550) vs. iShares MSCI Japan ETF (EWJ)

Zensho Holdings Co Business Overview & Revenue Model

Company Description
Zensho Holdings Co., Ltd. operates as a comprehensive Japanese enterprise overseeing an extensive array of restaurant chains, both domestically and internationally. Beyond its primary foodservice endeavors, the company also specializes in the deve...
How the Company Makes Money
Zensho primarily makes money by selling food and beverages to customers through its directly operated restaurants, with revenue recognized at the point of sale from dine-in, takeout, and (where offered) delivery orders. A second revenue stream com...

Zensho Holdings Co Financial Statement Overview

Summary
Strong multi-year revenue growth and improving operating profitability support a solid score, but still-thin net margins, elevated absolute debt, and volatile/weak free-cash-flow conversion reduce overall quality.
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
52
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.26T1.14T965.78B779.96B658.50B
Gross Profit686.44B622.21B524.05B414.87B347.62B
EBITDA129.50B117.20B87.52B58.36B58.84B
Net Income45.81B39.29B30.69B13.27B13.87B
Balance Sheet
Total Assets960.36B813.11B748.06B469.56B427.17B
Cash, Cash Equivalents and Short-Term Investments143.06B91.73B102.08B64.69B42.41B
Total Debt395.78B365.70B339.99B252.88B230.06B
Total Liabilities618.91B572.73B533.40B353.72B322.68B
Stockholders Equity340.96B240.06B214.38B115.63B103.32B
Cash Flow
Free Cash Flow23.17B17.43B45.87B22.09B17.92B
Operating Cash Flow101.18B78.95B85.98B53.08B45.43B
Investing Cash Flow-78.09B-66.45B-125.35B-35.16B-31.16B
Financing Cash Flow19.82B-16.27B54.59B1.80B-12.37B

Zensho Holdings Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price8911.00
Price Trends
50DMA
10707.68
Negative
100DMA
9390.68
Positive
200DMA
9236.99
Positive
Market Momentum
MACD
-75.21
Positive
RSI
34.90
Neutral
STOCH
4.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7550, the sentiment is Neutral. The current price of 8911 is below the 20-day moving average (MA) of 11429.00, below the 50-day MA of 10707.68, and below the 200-day MA of 9236.99, indicating a neutral trend. The MACD of -75.21 indicates Positive momentum. The RSI at 34.90 is Neutral, neither overbought nor oversold. The STOCH value of 4.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7550.

Zensho Holdings Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥1.02T27.4113.01%0.74%2.34%8.58%
68
Neutral
¥120.72B30.80―0.87%6.32%10.13%
64
Neutral
¥233.90B40.44―0.61%10.76%48.44%
63
Neutral
¥720.73B37.8610.08%0.76%11.29%22.50%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
¥1.61T32.4416.56%0.72%11.88%45.16%
59
Neutral
¥379.15B430.57―0.26%3.28%-79.18%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7550
Zensho Holdings Co
10,435.00
396.73
3.95%
JP:2702
Mcdonalds Holdings Company Japan
7,580.00
1,274.54
20.21%
JP:3197
Skylark Holdings Co
3,171.00
126.21
4.15%
JP:3397
TORIDOLL Holdings Corporation
4,310.00
-659.44
-13.27%
JP:8153
MOS FOOD SERVICES, INC.
3,900.00
-200.65
-4.89%
JP:9861
Yoshinoya Holdings Co., Ltd.
3,585.00
504.82
16.39%

Zensho Holdings Co Corporate Events

Zensho Raises FY2027 Profit Outlook on Strong Global Restaurant Performance
Aug 7, 2026
Zensho Holdings has revised its consolidated forecasts for the fiscal year ending March 31, 2027, reflecting stronger-than-expected performance in the first quarter, particularly in its Global Sukiya and Global Hamasushi segments. While net sales ...
Zensho Holdings Lifts Earnings Outlook After Profit Surge in First Quarter
Aug 7, 2026
Zensho Holdings Co. reported strong results for the first quarter of the fiscal year ending March 31, 2027, with net sales rising 16.8% year on year to ¥324.8 billion and profit attributable to owners of parent jumping 89.2% to ¥15.2 bil...
Zensho Holdings to Book ¥10.6 Billion Dividend Income from U.S. Subsidiary
Jul 27, 2026
Zensho Holdings Co., Ltd. said it expects to receive a dividend of 65 million U.S. dollars from its consolidated subsidiary Zensho USA Corporation by the end of August 2026. The payment underscores the contribution of the U.S. operations to the pa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 11, 2026