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Kura Sushi USA (KRUS)
NASDAQ:KRUS
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Kura Sushi USA
(NASDAQ:KRUS)
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Rating:57Neutral
Price Target:
$67.00
▼(-7.01% Downside)
The score is primarily held back by uneven profitability and negative free cash flow despite strong revenue growth. Technical momentum is supportive, but valuation is weak due to losses and no dividend. The latest earnings call was mixed: reiterated FY26 targets and strong liquidity help, while tariff pressure, margin compression, and negative comps remain key risks.
Positive Factors
Multi-year Revenue Scale
Sustained top-line expansion demonstrates successful unit growth and customer adoption of Kura's fast-casual conveyor-belt model. A larger revenue base supports operating leverage, supplier negotiating power, and incremental unit economics that can underpin durable profitability as new restaurants mature.
Strong Liquidity and No Net Debt
A cash-rich, debt-free balance sheet gives management flexibility to fund unit expansion, technology rollouts and working capital without near-term refinancing risk. This financial optionality lowers solvency risk while the chain scales and supports strategic investments that drive long-term returns.
Technology & Loyalty Adoption
Investments in reservation systems, robotics and digital ordering strengthen operational efficiency and customer experience. Higher rewards adoption and automation can sustainably lower labor costs, increase throughput and improve lifetime value, reinforcing a tech-enabled competitive advantage over time.
Negative Factors
Negative Free Cash Flow
Persistent negative free cash flow indicates capital spending and unit build-outs are consuming cash faster than operations convert sales into surplus cash. Unless cash conversion improves, growth may require external funding or slow expansion, constraining long-term self-funded scale and return generation.
Uneven Profitability and Return to Net Loss
Volatile margins and a return to net losses highlight execution risk in converting sales growth to sustained bottom-line profits. Structural margin pressure, remodel and occupancy costs, and inconsistent leverage of G&A threaten durable ROE improvement unless management delivers consistent unit-level margin recovery.
Tariff-driven Cost Headwinds
External tariff pressure meaningfully raises food costs and can erode restaurant-level margins for multiple quarters. Management noted inventory lead times before relief, so cost inflation may persist, forcing sustained pricing, promotional, or supplier adjustments that compress long-term margin sustainability.
Kura Sushi USA (KRUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$849.50M
Dividend YieldN/A
Average Volume (3M)346.36K
Price to Earnings (P/E)―
Beta (1Y)1.81
Revenue Growth18.88%
EPS Growth79.28%
CountryUS
Employees3,300
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.25
Shares Outstanding11,111,427
10 Day Avg. Volume445,767
30 Day Avg. Volume346,356
Financial Highlights & Ratios
PEG Ratio6.66
Price to Book (P/B)4.37
Price to Sales (P/S)3.57
P/FCF Ratio-46.90
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue2.56
Enterprise Value/Gross Profit23.27
Enterprise Value/Ebitda66.62
Forecast
1Y Price Target
$74.14Price Target Upside2.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)-0.15
Revenue Forecast (FY)$329.74M
Kura Sushi USA Business Overview & Revenue Model
Company DescriptionKura 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 MoneyKura Sushi USA generates revenue primarily through the sale of food and beverages at its restaurant locations. Key revenue streams include the direct sale of sushi, appetizers, desserts, and drinks, with a focus on both dine-in and takeout options. Additionally, the company may benefit from technology-driven efficiencies that help reduce labor costs and improve customer turnover. Partnerships with food suppliers ensure a consistent supply of fresh ingredients, while marketing initiatives may help attract new customers and retain existing ones. Kura Sushi USA also invests in expanding its footprint through new restaurant openings, contributing to its long-term growth and revenue potential.
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.
Data provided by:
The Fly
The FlyKura Sushi USA Earnings Call Summary
Earnings Call Date:Jan 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 02, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but stable outlook: strong top-line growth (+~14% Y/Y), healthy liquidity (≈$78.5M cash, no debt), continued unit expansion, and early signs of operational leverage (G&A and labor improvements, reservation uptake). However, material near-term margin pressure from tariffs, promotional/import costs, sales deleverage and a wider net loss/decline in Adjusted EBITDA tempered results. Management reiterated FY26 guidance and outlined paths to recovery (pricing, technology rollouts, promotions and labor initiatives), so while challenges are meaningful, the company presented concrete actions and ample liquidity to execute its plan.Q1-2026 Updates
Positive Updates
Quarterly Revenue Growth
Total sales of $73.5 million in Q1 versus $64.5 million prior year (+~14.0%), providing top-line expansion despite negative comps.
Progress on New Unit Growth
Opened 4 restaurants in Q1 (Arcadia, Modesto, Freeport, Lawrenceville) with 10 units under construction and a FY26 target of 16 new restaurants; plan to open 1 unit in Q2 and the remainder in the back half of the year.
Strong Liquidity and No Debt
Ended Q1 with $78.5 million of cash, cash equivalents and investments and zero debt, supporting growth plans and optionality (shelf registration in place).
G&A and Labor Efficiency Gains
Adjusted G&A reduced by ~80 basis points as a percentage of sales; labor as a percentage of sales improved to 32.5% from 32.9% (40 basis points improvement) and management reiterated a goal to improve labor by 100 basis points in FY26.
Technology and System Rollouts
Decoupled reservation system from loyalty and began advertising reservations; over 50% of rewards-member visits are now via the reservation system. Robotic dishwasher manufacturing on schedule with installations beginning in Q3 and majority of 50 eligible restaurants targeted by year-end.
Rewards Program Growth and Guest Spend
Rewards membership reported at roughly 1,000,000 (1.7M including newsletter sign-ups); rewards members spend about $6 more per person and visit 2–3x more frequently than nonmembers.
Reiterated Full-Year Guidance
Reaffirmed FY26 guidance: total sales $330–$334 million, ~16 new units, average net capex per unit ~$2.5 million, G&A 12–12.5% of sales, and full-year restaurant-level operating margin ~18%.
Sequential Improvement in Traffic and Mix
Management reported sequential improvement late in the quarter and into December, with encouraging post-November traffic and price/mix trends following a 3.5% menu price increase on Nov 1.
Negative Updates
Widening Net Loss
Net loss of $3.1 million (‑$0.25 per share) in Q1 versus a net loss of $1.0 million (‑$0.08 per share) in the prior year; adjusted net loss $2.8 million (‑$0.23) versus $1.0 million (‑$0.08) prior year.
Operating Loss and EBITDA Decline
Operating loss of $3.7 million versus $1.5 million prior year; Adjusted EBITDA decreased to $2.4 million from $3.6 million (down ~33%).
Restaurant-Level Margin Compression
Restaurant-level operating profit fell to 15.1% of sales from 18.2% a year ago (a ~310 basis point decline), reflecting margin pressure in the quarter.
Tariff-Driven Cost Pressure on Food & Beverage
Food & beverage costs were 29.9% of sales versus 29.0% prior year (up ~90 basis points in the quarter). Management cited tariffs as a meaningful headwind and estimated tariffs could add ~200 basis points to COGS absent offsets.
Increase in Other Operating Costs
Other costs rose to 16.1% of sales from 14.5% (up ~160 basis points) due to sales deleverage, higher marketing/promotional costs and tariffs on imported promotional items (management estimated ~40–50 basis points impact in this category).
Occupancy, D&A and Deleverage
Occupancy increased to 7.9% from 7.4% (up ~50 basis points) and depreciation & amortization rose to 5.4% from 4.8% (up ~60 basis points), driven by sales deleverage and remodel costs.
Negative Comparable Sales and Traffic
Comparable restaurant sales were negative (management cited ~‑2.5% comparable sales and traffic down ~2.5%; Jeff referenced ‑2.0% comps in a different comment), indicating ongoing traffic pressure despite price increases.
Uncertainty and Timing of Tariff Relief
Management noted 4–6 months of inventory lead times before tariff relief would flow through financials; COGS improvement depends on external tariff developments and supplier negotiations.
Company Guidance
Management reiterated full-year fiscal 2026 guidance targeting total sales of $330–$334 million, 16 new restaurant openings (maintaining >20% unit growth) with average net capex per unit ≈ $2.5M, full-year COGS around 30%, G&A at 12.0–12.5% of sales (adjusted G&A down ~80 bps Y/Y; Q1 G&A 13% including a 30 bp litigation accrual), and restaurant-level operating margins of ~18%; they expect to drive a ~100 bp improvement in labor (Q1 labor 32.5% vs 32.9% prior year), have taken effective menu pricing of 3.5% (with a 4.5% effective price in Q2), plan robotic dishwasher installations beginning in Q3 to fit the majority of 50 eligible restaurants by year-end, and enter the year with $78.5M of cash and investments and no debt while aiming for flat to slightly positive comparable sales for the full year.Kura Sushi USA Financial Statement Overview
Summary
Strong multi-year revenue growth and positive operating cash flow are offset by a return to net losses, volatile margins, and persistently negative free cash flow, which raises execution and funding-risk concerns as the company scales.Income Statement
Revenue has scaled meaningfully over the last several years (from $64.9M in 2021 to $282.8M in FY2025, and $291.8M in TTM (Trailing-Twelve-Months)). However, profitability has weakened versus the 2023 profit year: TTM (Trailing-Twelve-Months) shows a net loss of ~$4.0M with slightly negative operating profit, even though EBITDA remains positive (~3.8% margin). Strengths are the larger revenue base and positive EBITDA; key weakness is the inability to translate growth into consistent bottom-line profitability, with margins volatile year-to-year.Balance Sheet
The balance sheet shows a moderate leverage profile: TTM (Trailing-Twelve-Months) debt-to-equity is ~0.82 with ~$229.2M of equity supporting ~$187.4M of debt, and assets of ~$443.5M. Equity has grown materially since 2022, which helps financial flexibility. The main concern is returns: return on equity is slightly negative in TTM (Trailing-Twelve-Months), consistent with recent losses, and leverage has trended higher in dollars over time, which can pressure results if profitability does not improve.Cash Flow
Cash generation is mixed. Operating cash flow is positive in recent periods (TTM (Trailing-Twelve-Months) ~$20.6M), but free cash flow remains negative (TTM (Trailing-Twelve-Months) about -$10.9M) and has deteriorated versus the prior annual period. This suggests ongoing reinvestment and/or build-out is absorbing cash, and cash conversion is not yet strong enough to self-fund growth consistently; upside is that operating cash flow has stayed positive despite net losses.| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 282.76M | 237.86M | 187.43M | 141.09M | 64.89M |
| Gross Profit | 33.43M | 29.52M | 28.78M | 21.89M | 6.11M |
| EBITDA | 12.39M | 3.20M | 9.64M | 5.01M | -9.57M |
| Net Income | -1.90M | -8.80M | 1.50M | -764.00K | -10.29M |
Balance Sheet | |||||
| Total Assets | 430.94M | 328.52M | 304.66M | 201.36M | 177.67M |
| Cash, Cash Equivalents and Short-Term Investments | 62.46M | 50.99M | 78.24M | 35.78M | 40.43M |
| Total Debt | 170.01M | 141.35M | 119.56M | 90.81M | 72.96M |
| Total Liabilities | 199.87M | 165.98M | 140.02M | 108.06M | 86.83M |
| Stockholders Equity | 231.07M | 162.54M | 164.64M | 93.29M | 90.84M |
Cash Flow | |||||
| Free Cash Flow | -21.55M | -28.64M | -21.00M | -3.07M | -21.30M |
| Operating Cash Flow | 24.60M | 15.61M | 18.06M | 23.69M | -7.23M |
| Investing Cash Flow | -93.72M | -36.46M | -49.90M | -28.17M | -14.67M |
| Financing Cash Flow | 65.64M | 2.14M | 65.75M | -170.00K | 53.07M |
Kura Sushi USA Technical Analysis
Positive
72.05
Price Trends
53.07
Positive
61.24
Positive
66.33
Positive
Market Momentum
4.02
Negative
74.48
Negative
97.25
Negative
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 72.05 is above the 20-day moving average (MA) of 57.40, above the 50-day MA of 53.07, and above the 200-day MA of 66.33, indicating a bullish trend. The MACD of 4.02 indicates Negative momentum. The RSI at 74.48 is Negative, neither overbought nor oversold. The STOCH value of 97.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $952.76M | 33.88 | 8.44% | ― | 3.85% | 7.57% | |
68 Neutral | $397.22M | 14.32 | 5.82% | ― | 2.40% | -14.90% | |
63 Neutral | $1.34B | 648.15 | 0.35% | ― | 6.87% | -95.91% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $849.50M | -214.18 | -1.75% | ― | 18.88% | 79.28% | |
54 Neutral | $1.01B | 206.35 | 0.83% | ― | 17.27% | -76.53% | |
52 Neutral | $646.80M | -10.55 | 10.80% | 10.60% | -13.07% | -1139.12% |
* Consumer Cyclical Sector Average
KRUS
Kura Sushi USA
72.05
-9.70
-11.87%
BH
Biglari Holdings
436.98
218.01
99.56%
BJRI
BJ's Restaurants
45.27
10.99
32.06%
BLMN
Bloomin' Brands
7.47
-3.63
-32.70%
FWRG
First Watch Restaurant Group
16.26
-2.31
-12.44%
PTLO
Portillo's
5.18
-6.84
-56.91%
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.