Sushiro is embroiled in a parasitic egg controversy and is under investigation; the stock price of its Japanese parent company once fell by 14%. Analysis: This may have a long-term impact on its business in China

The Japanese chain sushi restaurant "Sushiro" has recently been embroiled in a food safety scandal in mainland China. A consumer in Beijing recently complained that while dining at Sushiro, they discovered white foreign objects suspected to be parasite eggs in their tuna sushi. The local market regulatory authority has already launched an investigation into the incident. The parent company of Sushiro, Food & Life Companies (Tokyo Stock Code: 3563), saw its stock price drop by 13.6% this morning, with the decline narrowing in the afternoon, closing down 5.3% at 9,260 yen. Tuna Sushi Suspected of Containing Parasite Eggs The consumer posted online that on March 1, while dining at a Sushiro branch in the Mentougou District of Beijing, they found their tuna sushi covered with white foreign objects suspected to be parasite eggs, which was quite disgusting. The Mentougou District Market Supervision Administration in Beijing issued a statement on Wednesday (the 4th), stating that they take the matter very seriously and have organized law enforcement personnel to inspect the site immediately, preserving evidence of the remaining tuna in the store and initiating an investigation. The market regulatory authority will resolutely protect consumers' legal rights and seriously investigate and deal with any illegal or irregular behavior. Related article: Beijing Sushiro | Diners waited 3 hours in line, claiming to have found parasite eggs in tuna Reports indicate that Sushiro is still reviewing the incident. According to the Southern Metropolis Daily, a representative from Sushiro stated that the company is still confirming whether the involved items are indeed parasite eggs. This incident comes at a time when Sushiro is accelerating its expansion in mainland China. Bloomberg quoted Morgan Stanley MUFG Securities analyst Katsumi Arai as saying that the potential revenue impact is difficult to assess, and this situation could be a minor issue or could have long-term effects on its business in China. Parent Company’s Same-Store Sales Increased by 12% Last Month Despite recent tensions in Sino-Japanese relations, Sushiro continues to attract many diners from mainland China, with reports indicating that many branches require a wait of several hours for seating. Food & Life Companies recently announced its operational data for February, showing a year-on-year increase of 12.4% in same-store sales, marking a return to double-digit growth for the first time in two months; the number of customers increased by 5.3% year-on-year, and the average customer spending rose by 6.8% year-on-year. In the fiscal year ending last September, Food & Life Companies reported a profit of 36 billion yen, a year-on-year increase of 54%. The company forecasts a further profit growth of 12% for the current fiscal year, reaching 40.5 billion yen, with revenue expected to grow by 13% to 485 billion yen