Kura Sushi USA (KRUS) AI Stock Analysis

• Market Cap: $743.38M
• Dividend Yield: N/A
• Average Volume (3M): 359.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: 21.37%
• EPS Growth: -705.26%
• Country: US
• Employees: 3,300
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Restaurants
• EPS (TTM): -0.31
• Shares Outstanding: 11,085,419
• 10 Day Avg. Volume: 250,570
• 30 Day Avg. Volume: 359,782
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 28.05
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $64.38
• Price Target Upside: 5.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Kura Sushi USA's overall stock score reflects its strong revenue growth and operational improvements. However, these are offset by profitability concerns, negative free cash flow, and valuation challenges due to a high negative P/E ratio. Technical indicators suggest some positive momentum, but the stock is still facing resistance. The latest earnings call highlights both opportunities and significant risks, with market expansion and cost management being counterbalanced by sales declines and rising costs.

Positive Factors

Growth and Expansion

KRUS appears well-positioned for a strong second half, supported by accelerating unit growth, upcoming IP collaborations, and tech rollouts like its reservation system.

Technological Advancements

The company continues to make progress on idiosyncratic initiatives such as new ordering technology and reservation system.

Negative Factors

Analyst Outlook

The analyst no longer forecasts positive comparable sales for Kura Sushi in 2025, which impacts the overall outlook.

Sales Performance

Same-store sales decreased by 5.3% due to traffic decline and negative impacts from severe weather and fires.

Tariff Impact

There is a significant impact from tariffs on Kura Sushi, with a 14.0% weighted average tariff on cost of goods sold.

Kura Sushi USA Business Overview & Revenue Model

Company Description

Kura Sushi USA, Inc. operates technology-enabled Japanese restaurants in the United States. The company's restaurants provide Japanese cuisine through an engaging revolving sushi service model, which is known as 'Kura Experience'. As of August 31, 2021, it operated 33 restaurants in nine states and Washington DC. The company was formerly known as Kula Sushi USA, Inc. and changed its name to Kura Sushi USA, Inc. in October 2017. The company was founded in 2008 and is headquartered in Irvine, California. Kura Sushi USA, Inc. is a subsidiary of Kura Sushi, Inc.

How the Company Makes Money

Kura Sushi USA makes money primarily through its restaurant operations, where it generates revenue by serving sushi and other Japanese dishes to its customers. The company's key revenue streams include dine-in sales, takeout and delivery services, and the sale of alcoholic beverages. Kura Sushi USA's unique selling proposition lies in its revolving sushi bar concept, which enhances customer engagement and encourages higher volume sales. Additionally, the company benefits from strategic partnerships with suppliers to ensure the quality and affordability of its ingredients, contributing to its profitability. The use of technology in its operations, such as automated billing and customer service robots, also helps in streamlining operations and reducing costs, thereby maximizing revenue.

Kura Sushi USA Financial Statement Overview

Summary

Kura Sushi USA shows strong revenue growth and improving operational efficiency but struggles with profitability and free cash flow. Increased leverage on the balance sheet and negative cash flow are areas of concern.

Income Statement

Kura Sushi USA shows a significant increase in total revenue over recent years, indicating positive growth momentum. However, profitability remains a concern as the company reports negative net income and EBIT margins. The gross profit margin has improved significantly in TTM (Trailing-Twelve-Months) compared to the previous year, showing operational efficiency. The revenue growth rate is strong, suggesting a promising upward trajectory, but sustained profitability is essential for long-term success.

Balance Sheet

The balance sheet reflects a stable capital structure with a reasonable equity ratio and increasing stockholders' equity over time. The debt-to-equity ratio has increased, implying higher leverage, which could pose a risk if not managed properly. Nevertheless, the company maintains a robust asset base, and the return on equity (ROE) is currently negative, primarily due to the net losses.

Cash Flow

Kura Sushi USA's cash flow statement highlights challenges in generating positive free cash flow, which is currently negative in the TTM period. The operating cash flow to net income ratio is favorable, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio is concerning. The company's ability to invest in growth while managing cash flow will be crucial for future stability.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
237.86M	187.43M	141.09M	64.89M	45.17M
	Gross Profit
29.52M	28.78M	21.89M	6.11M	-4.25M
	EBIT
-11.51M	332.00K	-754.00K	-9.99M	-16.50M
	EBITDA
3.20M	9.64M	5.01M	-5.84M	-13.07M
	Net Income Common Stockholders
-8.80M	1.50M	-764.00K	-10.29M	-17.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.99M	78.24M	35.78M	40.43M	9.26M
	Total Assets
328.52M	304.66M	201.36M	177.67M	118.38M
	Total Debt
141.35M	119.56M	90.81M	72.96M	64.51M
	Net Debt
90.36M	49.86M	55.03M	32.53M	55.25M
	Total Liabilities
165.98M	140.02M	108.06M	86.83M	72.67M
	Stockholders Equity
162.54M	164.64M	93.29M	90.84M	45.71M
Cash Flow		Free Cash Flow
-28.91M	-22.75M	-3.97M	-21.38K	-27.46M
	Operating Cash Flow
15.61M	18.06M	23.69M	-7.15K	-13.00M
	Investing Cash Flow
-36.46M	-49.90M	-28.17M	-14.67K	-14.78M
	Financing Cash Flow
2.14M	65.75M	-170.00K	52.98K	-1.00M

Kura Sushi USA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRUS, the sentiment is Positive. The current price of 60.9 is above the 20-day moving average (MA) of 56.16, above the 50-day MA of 56.08, and below the 200-day MA of 74.62, indicating a neutral trend. The MACD of 1.58 indicates Negative momentum. The RSI at 56.70 is Neutral, neither overbought nor oversold. The STOCH value of 61.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KRUS.

Kura Sushi USA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATH	71 Outperform	$400.20M	16.89	-102.54%	2.04%	6.83%	24.77%
MYE	67 Neutral	$433.26M	41.41	3.69%	4.66%	3.92%	-73.64%
MPAA	63 Neutral	$186.05M	―	-6.40%	―	4.26%	64.64%
RICK	62 Neutral	$369.84M	74.82	1.73%	0.65%	-1.53%	-80.10%
HEPS	61 Neutral	$1.06B	―	-39.43%	―	29.68%	―
Sector *	61 Neutral	$6.64B	11.67	3.04%	3.98%	2.60%	-21.24%
KRUS	51 Neutral	$743.38M	―	-5.38%	―	21.37%	-705.26%

Kura Sushi USA Corporate Events

Kura Sushi USA Completes Successful Public Offering

Kura Sushi USA, Inc., a technology-driven Japanese restaurant chain, successfully closed its public offering of 800,328 Class A common stock shares, raising approximately $64.6 million. Priced at $85 per share, the offering was managed by William Blair, Barclays Capital, and TD Securities among others. The proceeds will be used for general corporate purposes, including capital expenditures and working capital, reflecting Kura Sushi’s growth strategy amid volatile market conditions.

Kura Sushi USA Announces Public Offering of Stock

Kura Sushi USA, a technology-driven Japanese restaurant brand, is launching an underwritten public offering of Class A common stock, with plans to use the proceeds for general corporate purposes. The offering is managed by William Blair, Barclays Capital, and TD Securities, and is subject to market conditions. Forward-looking statements highlight potential risks including economic factors, competition, and regulatory impacts.