Food & Life Companies Ltd. shares plunged as much as 14% after Chinese authorities inspected a Sushiro outlet in Beijing over suspected food contamination. The decline marked the steepest intraday drop since November 17, following reports of parasite eggs found on a tuna dish. Local media reported the issue emerged after a consumer complaint triggered an inspection by China's State Administration for Market Regulation.

The incident arrives as Sushiro aggressively expands in China, where strong customer demand has created hour-long waits for tables. The China push forms part of Food & Life's strategy to reduce dependence on its domestic market by growing overseas. Company representatives stated they are still verifying whether the object in question was indeed parasite eggs, while preserving remaining tuna cuts as evidence for the formal investigation.

Despite this setback, Food & Life's financial performance remains strong. The company reported a 54% jump in operating profit to ¥36 billion for the year ended September, and forecasts a 12% profit increase to ¥40.5 billion for the current fiscal year. With shares up 7.6% year-to-date in line with the Topix Index, investors may view this as a temporary disruption rather than a fundamental issue with the company's China strategy.