Zensho Holdings Co., a well-known Japanese fast-food operator, experienced a significant increase in its stock price in Tokyo, reaching its highest level since November 2023.

The surge followed the company"s announcement of a price hike for about 60% of its menu items at Sukiya, its beef bowl chain.

The decision was made in response to the rising prices of Japanese rice, which have affected the company"s operational costs.

The positive market sentiment towards Zensho"s pricing strategy was further reinforced by an increase in the target price from Morgan Stanley MUFG Securities Co.

This is the second time in seven months that the company has adjusted its prices to address the rising costs of materials, labor, and energy.