Analyst Andrew Charles of TD Cowen maintained a Hold rating on Kura Sushi USA, reducing the price target to $59.00.
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Andrew Charles has given his Hold rating due to a combination of factors impacting Kura Sushi USA’s financial outlook. One of the primary reasons is the anticipated flat same-store sales growth in fiscal 2026, which is a downgrade from the previous forecast. This adjustment is largely attributed to expected mid-single-digit percentage declines in the first quarter of 2026, influenced by challenging traffic comparisons and tariff impacts.
Additionally, while Kura Sushi USA reported adjusted EBITDA for the fourth quarter that met consensus expectations, the same-store sales fell short of estimates, primarily due to a deteriorating sales mix amid tightening consumer spending. Despite some regional outperformance and improvements in new store productivity, the overall restaurant-level margins were lower than expected. These mixed results, coupled with management’s cautious outlook for the upcoming quarters, contribute to the Hold rating.
In another report released on October 23, Citi also maintained a Hold rating on the stock with a $79.00 price target.