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Kura Sushi USA
(NASDAQ:KRUS)
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Rating:57Neutral
Price Target:
$49.00
▲(10.94% Upside)
Action:Reiterated
Date:07/08/26
The score is driven primarily by improving fundamentals (rapid revenue growth and a positive shift to TTM free cash flow) and a broadly balanced earnings-call outlook with tangible margin progress. Offsetting these positives are still-unproven sustained profitability, rising balance-sheet leverage in the financial statements, and limited valuation support given the negative P/E and no dividend yield. Technicals are neutral, with short-term stabilization but a weaker longer-term trend.
Positive Factors
Revenue Scaling
Sustained revenue growth to $318.8M TTM demonstrates successful market expansion and product-market fit for the conveyor-sushi concept. Larger scale should enable better leverage of fixed costs and support margin improvement over multiple quarters as new units mature and same-store sales normalize.
Negative Factors
Still Slightly Loss-Making
Despite margin progress, the company remains slightly loss-making at the operating and net levels, which constrains retained earnings and limits the firm’s ability to absorb shocks. Achieving consistent positive operating margins is necessary to sustain expansion without dilutive financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Scaling
Sustained revenue growth to $318.8M TTM demonstrates successful market expansion and product-market fit for the conveyor-sushi concept. Larger scale should enable better leverage of fixed costs and support margin improvement over multiple quarters as new units mature and same-store sales normalize.
Read all positive factors
Kura Sushi USA Key Performance Indicators (KPIs)
Any
Comparable Restaurant Sales Growth
Measures the sales performance of restaurants open for a year or more, indicating how well existing locations are doing without the influence of new openings. This metric reveals customer loyalty, brand strength, and operational efficiency, providing insight into the company's ability to drive growth through its current footprint.
Measures the sales performance of restaurants open for a year or more, indicating how well existing locations are doing without the influence of new openings. This metric reveals customer loyalty, brand strength, and operational efficiency, providing insight into the company's ability to drive growth through its current footprint.
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The Fly
The FlyKura Sushi USA (KRUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$559.74M
Dividend YieldN/A
Average Volume (3M)468.68K
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth18.39%
EPS Growth78.94%
CountryUS
Employees3,900
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.17
Shares Outstanding11,149,786
10 Day Avg. Volume393,948
30 Day Avg. Volume468,680
Financial Highlights & Ratios
PEG Ratio6.65
Price to Book (P/B)4.37
Price to Sales (P/S)3.57
P/FCF Ratio-46.90
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$67.14Price Target Upside52.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)-0.15
Revenue Forecast (FY)$330.74M
Kura Sushi USA Business Overview & Revenue Model
Company Description
Kura Sushi USA, Inc. manages a chain of technology-enhanced Japanese restaurants throughout the United States. These eateries offer Japanese cuisine primarily through their signature "Kura Experience," an engaging revolving sushi service. As of Au...
How the Company Makes Money
Kura Sushi USA primarily makes money through restaurant-level sales generated at its company-owned locations. The core revenue stream is food and beverage sales to customers, including sushi and other menu items ordered from the conveyor-belt sele...
Kura Sushi USA Earnings Call Summary
Earnings Call Date:Jul 07, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong operational execution and margin expansion (labor leverage, improved restaurant-level margin, adjusted EBITDA growth, price/mix gains, healthy cash/no debt position, and an active IP/marketing pipeline) contrasted with tangible top-line pressures (traffic down -5.1%, slight negative comps, materially higher COGS from tariffs, a sharp drop in net income year-over-year) and disruptive restaurant opening delays that reduced revenue months and constrained near-term guidance. Management outlined clear levers to improve margins and outlined initiatives for FY27 (Bikkura Pon change, app/rewards upgrade, robotic dishwashers, vendor negotiations), but near-term revenue and cost headwinds leave the picture balanced between meaningful operational progress and persistent top-line and cost challenges.Positive Updates
Top-Line Growth (Total Sales)
Total sales for the fiscal third quarter were $85.9M, up from $74.0M in the prior year quarter (≈+16.1%).
Negative Updates
Traffic Decline and Comparable Sales Pressure
Comparable restaurant sales declined -0.4% for the quarter, driven by traffic down -5.1%. Management cited elevated gas prices and World Cup-related dynamics as partial causes.
Read all updates
Q3-2026 Updates
Positive
Negative
Top-Line Growth (Total Sales)
Total sales for the fiscal third quarter were $85.9M, up from $74.0M in the prior year quarter (≈+16.1%).
Read all positive updates
Company Guidance
Kura reiterated fiscal-year guidance for total sales of $330.5–$331.5 million while maintaining a plan to open 16 new restaurants (keeping annual unit growth above 20%) with average net capex per unit of about $2.5 million; management expects full‑year food & beverage cost to be ~30% of sales, full‑year restaurant‑level operating profit margin of ~18.5% (versus a historical 20% target), G&A at ~12% of sales excluding litigation, and year‑to‑date labor at 31.2% (versus FY25’s 32.9%) with an expected ~200‑bp improvement for the year; guidance also reflects Q3 trends including effective pricing of 4.5% (Q4 effective pricing guided to ~4.2%), Q3 restaurant‑level operating profit of 19.1%, adjusted EBITDA of $6.6 million (7.7% margin), and cash & investments of $66.1 million with no debt.Kura Sushi USA Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
57
Neutral
Cash Flow
68
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 318.84M | 282.76M | 237.86M | 187.43M | 141.09M | 64.89M |
| Gross Profit | 35.87M | 33.43M | 29.52M | 28.78M | 21.89M | 6.11M |
| EBITDA | 10.45M | 12.39M | 3.20M | 9.64M | 5.01M | -9.57M |
| Net Income | -2.08M | -1.90M | -8.80M | 1.50M | -764.00K | -10.29M |
Balance Sheet | ||||||
| Total Assets | 471.58M | 430.94M | 328.52M | 304.66M | 201.36M | 177.67M |
| Cash, Cash Equivalents and Short-Term Investments | 44.31M | 62.46M | 50.99M | 78.24M | 35.78M | 40.43M |
| Total Debt | 207.95M | 170.01M | 141.35M | 119.56M | 90.81M | 72.96M |
| Total Liabilities | 240.73M | 199.87M | 165.98M | 140.02M | 108.06M | 86.83M |
| Stockholders Equity | 230.85M | 231.07M | 162.54M | 164.64M | 93.29M | 90.84M |
Cash Flow | ||||||
| Free Cash Flow | 7.92M | -21.55M | -28.64M | -21.00M | -3.07M | -21.30M |
| Operating Cash Flow | 27.70M | 24.60M | 15.61M | 18.06M | 23.69M | -7.23M |
| Investing Cash Flow | -51.53M | -93.72M | -36.46M | -49.90M | -28.17M | -14.67M |
| Financing Cash Flow | 1.08M | 65.64M | 2.14M | 65.75M | -170.00K | 53.07M |
Kura Sushi USA Technical Analysis
Neutral
44.17
Price Trends
49.87
Negative
54.21
Negative
57.40
Negative
Market Momentum
-0.83
Negative
49.39
Neutral
74.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRUS, the sentiment is Neutral. The current price of 44.17 is below the 20-day moving average (MA) of 47.52, below the 50-day MA of 49.87, and below the 200-day MA of 57.40, indicating a neutral trend. The MACD of -0.83 indicates Negative momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 74.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KRUS.
Kura Sushi USA Risk Analysis
Kura Sushi USA disclosed 54 risk factors in its most recent earnings report. Kura Sushi USA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kura Sushi USA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $47.74B | 34.17 | 53.26% | ― | 7.31% | -4.37% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $111.10M | -4.64 | 50.91% | ― | 0.19% | 46.85% | |
60 Neutral | $7.60B | 122.52 | 7.92% | ― | 24.08% | -57.11% | |
58 Neutral | $2.68B | 61.35 | 7.55% | ― | 16.22% | 228.81% | |
57 Neutral | $559.74M | -271.00 | -0.90% | ― | 18.39% | 78.94% | |
44 Neutral | $766.44M | 49.62 | 4.04% | ― | -1.55% | ― |
* Consumer Cyclical Sector Average
KRUS
Kura Sushi USA
48.56
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-41.59%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.