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Kura Sushi USA (KRUS)
NASDAQ:KRUS
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Kura Sushi USA (KRUS) AI Stock Analysis

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KRUS

Kura Sushi USA

(NASDAQ:KRUS)

Rating:60Neutral
Price Target:
$83.00
▲(4.06% Upside)
Kura Sushi USA's overall stock score is primarily influenced by its strong revenue growth and improved profitability metrics. However, the negative net income, increasing debt levels, and valuation challenges weigh heavily on the score. The earnings call provided some optimism with improved operational metrics and increased sales guidance, but negative sales growth and rising costs remain concerns.
Positive Factors
Financial Performance
Kura Sushi USA reported adj EBITDA of $5.4M that beat the $4.5M estimate and $5.2M consensus.
Growth Potential
Kura Sushi's tech-enabled format and geographic portability are key highlights, demonstrating the brand's momentum and long development potential.
Revenue Growth
Kura Sushi reported better than expected results on all line items, with revenue beating consensus and showing sequential acceleration in same-store sales.
Negative Factors
Sales Performance
Same store sales decelerated to -3.5% from -0.4% in 1Q and -1.9% in 2Q due to a combination of side items removal and several coupons issued.
Tariff Impact
There is a 250 bps unmitigated COGS impact from tariffs that is believed to pressure management's goal to reach 20%.
Tariff Volatility
There remains volatility around the tariff situation, which could impact costs, with management indicating that worst case scenario could lead to higher costs of goods sold.

Kura Sushi USA (KRUS) vs. SPDR S&P 500 ETF (SPY)

Kura Sushi USA Business Overview & Revenue Model

Company DescriptionKura Sushi USA (KRUS) is a leading restaurant chain specializing in conveyor belt sushi and Japanese cuisine, offering a unique dining experience that combines technology with traditional culinary practices. Founded in 2008 and headquartered in Irvine, California, the company operates multiple locations across the United States, primarily serving sushi, sashimi, and a variety of Japanese dishes. Kura Sushi is recognized for its innovative approach, including the use of a revolving sushi belt that allows customers to select dishes as they pass by, along with an interactive ordering system that enhances customer engagement.
How the Company Makes MoneyKura Sushi generates revenue primarily through the sale of food and beverages at its restaurants. The company's revenue model is built on providing a unique dining experience that encourages repeat visits. Key revenue streams include sales from sushi and other Japanese dishes, beverages, and dessert items. Additionally, Kura Sushi may benefit from partnerships with suppliers that provide high-quality ingredients, which can enhance its menu offerings and customer satisfaction. The company also focuses on effective cost management and operational efficiency to maximize profit margins. Seasonal promotions and loyalty programs may further contribute to customer retention and increased sales.

Kura Sushi USA Key Performance Indicators (KPIs)

Any
Any
Comparable Restaurant Sales Growth
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.
Chart InsightsKura Sushi USA is experiencing a downturn in comparable restaurant sales growth, with recent quarters showing negative trends. Despite opening new locations and improving food and beverage costs, challenges persist due to declining traffic and rising labor costs. The company is optimistic about future growth, driven by a new reservation system and planned IP collaborations. However, ongoing tariff concerns and labor cost pressures could continue to impact margins and sales performance.
Data provided by:Main Street Data

Kura Sushi USA Earnings Call Summary

Earnings Call Date:Jul 08, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, including the successful implementation of a new reservation system, improved food and beverage costs, and strong EBITDA growth. However, these were offset by challenges such as negative comparable sales growth and increased labor costs. The company's cash position remains robust, and sales guidance has been raised, indicating optimism about future performance.
Q3-2025 Updates
Positive Updates
Successful Rollout of New Reservation System
Completed the system-wide rollout of the reservation system ahead of schedule, which has been received positively by guests and team members.
Improved Food and Beverage Costs
Food and beverage costs as a percentage of sales improved by 90 basis points to 28.3% compared to the prior year, driven by pricing and supply chain efforts.
New Restaurant Openings and Market Expansion
Opened three new restaurants in North Scottsdale, Arizona, Lynnwood, Washington, and McKinney, Texas, with subsequent openings in Woodlands, Texas, and Salt Lake City, Utah. Lynnwood quickly became one of the top five restaurants.
Strong Adjusted EBITDA Growth
Adjusted EBITDA increased by 20% to $5.4 million compared to $4.5 million in the prior year quarter, despite higher restaurant operating costs.
Robust Cash Position
The company ended the fiscal third quarter with $93 million in cash, cash equivalents, and investments, and no debt.
Increase in Annual Sales Guidance
The company raised its full fiscal year 2025 sales guidance to approximately $281 million.
Negative Updates
Negative Comparable Sales Growth
Total sales for the fiscal third quarter were $74 million, with comparable sales growth of negative 2.1%, driven by negative traffic of 2.9%.
Increased Labor Costs
Labor as a percentage of sales increased by 50 basis points due to high single-digit wage inflation.
Operating Profit Margin Decline
Operating profit margin decreased to 18.2% from 20% in the prior year, due to higher labor, occupancy, and other costs.
Mixed IP Collaboration Results
Some IP collaborations have not translated into bigger sales, highlighting the importance of selecting the right partners.
Company Guidance
During the fiscal third quarter of 2025, Kura Sushi USA, Inc. reported total sales of $74 million, with a comparable sales decline of 2.1%, driven by a traffic decrease of 2.9% but partially offset by a positive price and mix impact of 0.8%. The company showcased operational improvements, with food and beverage costs as a percentage of sales improving by 90 basis points to 28.3% from the prior year's 29.2%. Despite facing high single-digit wage inflation, labor costs as a percentage of sales rose by only 50 basis points. The operating profit margin declined to 18.2% from 20% in the previous year due to increased labor and occupancy costs. The company opened three new restaurants in the quarter and two more subsequent to the quarter-end. Looking ahead, Kura Sushi expects to achieve total sales of $281 million in fiscal 2025, with a plan to open 15 new units. They anticipate general and administrative expenses to remain below 13% of sales, excluding any legal settlements, while maintaining an annual unit growth rate above 20%.

Kura Sushi USA Financial Statement Overview

Summary
Kura Sushi USA demonstrates strong revenue growth and improved gross profitability. However, the company faces challenges with negative net income and an increase in debt levels, which affect overall financial health. There's a need to focus on achieving sustainable profitability and managing leverage effectively to enhance financial stability.
Income Statement
65
Positive
Kura Sushi USA has shown significant revenue growth over the years, with a notable increase from $141 million in 2022 to $269 million in TTM (Trailing-Twelve-Months). Despite the revenue growth, profitability remains a challenge with negative net income and EBIT margins. The gross profit margin has improved, indicating better cost management, but the net profit margin remains negative, reflecting ongoing challenges in achieving profitability.
Balance Sheet
70
Positive
The balance sheet indicates a moderate debt-to-equity ratio, which suggests manageable leverage. The equity ratio has remained stable, showing a solid asset base. However, the company has experienced an increase in total debt over the years, which could pose risks if profitability does not improve. The return on equity is negative, reflecting the net income losses.
Cash Flow
60
Neutral
Cash flow analysis reveals an improving operating cash flow, which is a positive indicator of the company's ability to generate cash from operations. However, the free cash flow remains volatile, and the ratio of operating cash flow to net income is skewed due to negative net income. The company needs to focus on increasing free cash flow to ensure financial stability.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue237.86M187.43M141.09M64.89M45.17M
Gross Profit29.52M28.78M21.89M6.11M-4.25M
EBITDA3.20M9.64M5.01M-5.84M-13.07M
Net Income-8.80M1.50M-764.00K-10.29M-17.36M
Balance Sheet
Total Assets328.52M304.66M201.36M177.67M118.38M
Cash, Cash Equivalents and Short-Term Investments50.99M78.24M35.78M40.43M9.26M
Total Debt141.35M119.56M90.81M72.96M64.51M
Total Liabilities165.98M140.02M108.06M86.83M72.67M
Stockholders Equity162.54M164.64M93.29M90.84M45.71M
Cash Flow
Free Cash Flow-28.91M-22.75M-3.97M-21.38K-27.46M
Operating Cash Flow15.61M18.06M23.69M-7.15K-13.00M
Investing Cash Flow-36.46M-49.90M-28.17M-14.67K-14.78M
Financing Cash Flow2.14M65.75M-170.00K52.98K-1.00M

Kura Sushi USA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price79.76
Price Trends
50DMA
81.94
Negative
100DMA
72.50
Positive
200DMA
76.31
Positive
Market Momentum
MACD
-1.01
Positive
RSI
48.06
Neutral
STOCH
65.47
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 79.76 is below the 20-day moving average (MA) of 81.30, below the 50-day MA of 81.94, and above the 200-day MA of 76.31, indicating a neutral trend. The MACD of -1.01 indicates Positive momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 65.47 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$535.72M15.577.36%3.62%17.67%
67
Neutral
$1.17B293.120.69%14.53%-83.26%
64
Neutral
$758.20M28.787.12%4.07%-1.24%
63
Neutral
$966.21M24.426.82%4.14%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
60
Neutral
$964.61M-4.77%18.76%-1259.53%
50
Neutral
$609.94M24.74%9.62%-11.45%-121.89%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KRUS
Kura Sushi USA
81.03
14.44
21.68%
BH
Biglari Holdings
316.92
137.79
76.92%
BJRI
BJ's Restaurants
34.22
3.11
10.00%
BLMN
Bloomin' Brands
7.26
-9.06
-55.51%
FWRG
First Watch Restaurant Group
18.84
1.78
10.43%
PTLO
Portillo's
7.00
-5.27
-42.95%

Kura Sushi USA Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Kura Sushi USA Completes Successful Public Offering
Positive
Nov 13, 2024

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.

Private Placements and Financing
Kura Sushi USA Announces Public Offering of Stock
Neutral
Nov 12, 2024

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.

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.Date of analysis: Aug 20, 2025