Impact of the spread of COVID-19 on business performance and financial position
First written in FY2020-Q3. 3 of 12 entries say "Worsened", first in FY2021-Q1. Latest entry: FY2023.
The whole theme swung hardest in 2025: 6 of 13 companies on the "Worse" side.
16 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「With regard to COVID-19, economic activity is gradually returning to normal following the reclassification of the disease under the Infectious Diseases Control Law as a Category V disease. However, the company's performance could be significantly affected if operating restrictions are imposed by the government or local authorities, or if consumers restrain their activities, due to the emergence of previously unidentified variant strains or other factors.」
While the actual impact of the infectious disease has diminished and economic activity is returning to normal, the risk of future operating restrictions and consumer restraint due to variant strains and other factors persists. - FY2023-Q3Infectious disease impact persists alongside a recovery trendAnnual report
「From the beginning of the period, the company was affected by reduced foot traffic due to the eighth wave of COVID-19 infections and by the impact of disruptive behavior at restaurants, but business entered a recovery trend as the COVID-19 situation subsided.」
The company states that movement declined at the beginning of the fiscal year due to the eighth wave, but the business shifted toward recovery as the infectious disease subsided. - FY2023-Q1WorsenedAnnual report
「In the food-service industry, the eighth wave of COVID-19, which began spreading in November 2022, reduced traffic, particularly at suburban stores, through late January 2023.」
The eighth wave led to an actual decline in movement in Japan, particularly around suburban stores, bringing the business impact of the infectious disease into sharper focus again. - FY2022-Q3Domestic impact during the seventh wave coexisted with recovery in North AmericaAnnual report
「The seventh wave of COVID-19 infections from June 2022 onward further restricted movement, and the outlook remained uncertain.」
In Japan, restrictions on movement and renewed uncertainty emerged as a result of the seventh wave, while North America achieved its first quarterly profit since the spread of the infectious disease, indicating regional differences in impact and recovery. - FY2022-Q2Recovery after operating restrictions were eased, followed by renewed restrictionsAnnual report
「As infections with the Omicron variant spread rapidly, quasi-emergency measures to prevent the spread of disease were imposed in January 2022. Until they were lifted in March 2022, approximately 90% of stores were affected by reduced operating hours, and the difficult business environment continued. Customer traffic recovered after operating restrictions were lifted in March.」
The company states that approximately 90% of its domestic stores were affected by reduced operating hours, while customer traffic recovered after operating restrictions were lifted in March 2022. - FY2022-Q1Recovery after restrictions were lifted, followed by renewed restrictions due to variant strainsAnnual report
「In the food-service industry, operating restrictions such as requests to shorten business hours were fully lifted in November 2021, and customer numbers temporarily recovered. However, the business environment remained difficult, as priority preventive measures were reintroduced in January 2022 due to the rapid spread of COVID-19 variants.」
Although customer traffic temporarily recovered after operating restrictions were lifted, the spread of variant strains and renewed restrictions in January 2022 caused the impact of the infectious disease to vary by region and period. - FY2021Impact continues, with recovery varying by regionAnnual report
「With regard to COVID-19, if another pandemic occurs due to the spread of variant strains or other factors, the Group's performance could be significantly affected by operating restrictions imposed by the government or local authorities and by consumer restraint on activities. This could adversely affect the Group's financial position and operating results through the recognition of unexpected impairment losses and other effects.」
While infectious disease risks persist, same-store sales in Japan recovered to pre-COVID levels. Recovery and the impact of the pandemic varied by region, with North America reporting an ordinary loss of ¥1.079 billion and Taiwan an ordinary loss of ¥136 million. - FY2021-Q3Impact varied by regionAnnual report
「In May 2021, amid the spread of COVID-19, Taiwan subsidiary KSA was subject to a nationwide Level 3 epidemic alert, and indoor dining at restaurants was banned throughout Taiwan. The Level 3 alert continued through July before being downgraded to Level 2. All stores in Taiwan are currently operating normally.」
In Taiwan, after in-store dining was prohibited, the alert level was lowered in July and operations returned to normal. In Japan, reduced operating hours and other measures continued, while in the US the company continued to post ordinary losses even after restrictions were eased, indicating regional differences in the impact of the infectious disease. - FY2021-Q2WorsenedAnnual report
「US subsidiary KSU was affected by extremely severe operating restrictions associated with the spread of COVID-19, including a ban on indoor dining in California through February 2021. California accounted for 15 of the 30 stores operated in the US. As a result, revenue was ¥1,936 million, down 51.7% year on year, and the ordinary loss was ¥1,064 million, compared with an ordinary loss of ¥144 million in the same period of the previous year. From March 2021 onward, operating restrictions on restaurants were progressively eased and lifted as vaccination rates in the US improved, and operating conditions improved rapidly.」
Severe operating restrictions in the US resulted in revenue falling 51.7% year on year and an ordinary loss of ¥1,064 million. The company states that operating conditions improved rapidly from March 2021 as restrictions were eased and lifted. - FY2021-Q1WorsenedAnnual report
「In Taiwan, the impact of COVID-19 on consolidated subsidiary KSA was limited and revenue remained solid. In the US, however, KSU was affected by severe operating restrictions, including continued limits or bans on indoor dining capacity at restaurants. KSU's revenue for the first quarter of the current consolidated accounting period was ¥989 million, half the year-earlier figure, and it recorded an ordinary loss of ¥664 million, materially affecting the consolidated operating results.」
In the US, restrictions and bans on indoor dining continued, with KSU's revenue halving year on year and an ordinary loss of ¥664 million, showing that the impact of infectious diseases on business performance had expanded. - FY2020MaterialisedAnnual report
「Following the government's declaration of a state of emergency in response to the spread of COVID-19, our stores were affected by measures including reduced operating hours. If the economic impact of the COVID-19 pandemic is prolonged, it may affect the Kura Sushi Group's business performance and financial position.」
The company states that infectious-disease risks had materialized in its business and results, including reduced operating hours under the state of emergency, store closures and operating restrictions in the US, and lower profit and a net loss. - FY2020-Q3First statedAnnual report
「Following the government's declaration of a state of emergency in response to the spread of COVID-19, our stores were affected by measures including reduced operating hours. If the economic impact of the COVID-19 pandemic is prolonged, it may affect the Kura Sushi Group's business performance and financial position.」
The risk was newly identified as a business risk in this filing. The company states that reduced operating hours resulting from the state of emergency had already occurred and that prolonged effects could affect business performance and financial position.