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

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KRUS

Kura Sushi USA

(NASDAQ:KRUS)

Rating:65Neutral
Price Target:
$103.00
▲(19.61% Upside)
Kura Sushi USA's overall score is driven by solid technical indicators and operational improvements. However, negative earnings and valuation challenges, coupled with increased costs, weigh on the score. The company's efforts to expand and improve efficiency are promising, but financial stability remains a concern.
Positive Factors
Earnings
Kura Sushi USA reported adjusted EBITDA of $5.4M, beating both the estimate and Consensus Metrix, showcasing strong financial performance.
Expansion
Management has raised revenue guidance and plans for more net new openings, reflecting confidence in business growth and expansion.
Negative Factors
Same Store Sales
Same store sales decelerated to -3.5% due to a combination of side items removal and several coupons issued, indicating challenges in sustaining growth.
Tariffs
There is a 250 bps unmitigated COGS impact from tariffs that is believed to pressure management's goal to reach 20% restaurant margins.

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

Kura Sushi USA Business Overview & Revenue Model

Company DescriptionKura Sushi USA, Inc. is a leading operator of technology-enabled sushi restaurants in the United States. The company is part of the broader service sector, specifically within the hospitality and restaurant industry. It specializes in offering a unique dining experience through its revolving sushi bar format, which combines traditional Japanese cuisine with an interactive, automated service model. Kura Sushi USA is known for its commitment to quality, sustainability, and providing an engaging customer experience.
How the Company Makes MoneyKura Sushi USA makes money primarily through the operation of its revolving sushi bar restaurants. The company's revenue model is centered around the sale of sushi and other Japanese-inspired dishes directly to customers in its brick-and-mortar locations. Key revenue streams include dine-in sales, takeout, and delivery services. The automated, conveyor-belt sushi system allows for efficient service and maximizes table turnover, contributing significantly to revenue. Kura Sushi USA also benefits from its loyalty programs and unique dining features, such as touch screen ordering and a prize system, which enhance customer engagement and repeat visits. Partnerships with technology providers enable the seamless integration of these automated systems, further optimizing operational efficiency and profitability.

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: -0.77%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of progress and challenges. While the company has successfully rolled out a new reservation system and expanded its restaurant footprint, it faces challenges in comparable sales growth and increased costs. The planned IP collaborations and improved adjusted EBITDA are positive indicators, but concerns about tariffs and labor costs persist.
Q3-2025 Updates
Positive Updates
System-Wide Rollout of Reservation System
Completed ahead of schedule, with positive feedback from guests and team members. Expected to potentially drive traffic lift and labor improvement.
New Restaurant Openings
Opened three new restaurants in North Scottsdale, Arizona; Lynnwood, Washington State; and McKinney, Texas. Subsequent openings in Woodlands, Texas, and Salt Lake City, Utah. Lynnwood joined the top five restaurants shortly after opening.
Adjusted EBITDA Increase
Adjusted EBITDA was $5.4 million, a 20% increase from $4.5 million in the prior year quarter.
Cash Position
Ended the fiscal third quarter with $93 million in cash, cash equivalents, and investments, and no debt.
IP Collaborations for Fiscal 2026
Record number of IP collaborations planned, with no interruptions between campaigns, aiming to utilize collaborations more effectively.
Negative Updates
Negative Comparable Sales Growth
Total sales for the fiscal third quarter were $74 million, with comparable sales growth of negative 2.1%.
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 was 18.2%, down from 20% in the prior year, due to higher labor, occupancy, and other costs.
Tariff Concerns
Potential impact from tariffs on food and beverage costs, with 45% of the basket coming from Japan, Korea, and Vietnam.
Company Guidance
During the fiscal third quarter of 2025, Kura Sushi USA, Inc. reported total sales of $74 million, with comparable sales growth of negative 2.1%, impacted by a traffic decline of 2.9% and a positive mix of 0.8%. The company saw improvements in food and beverage costs, which were 28.3% of sales, a 90 basis point improvement from the previous year's 29.2%, due to pricing and supply chain efforts. However, labor costs increased by 50 basis points, driven by high single-digit wage inflation. Operating profit margin was 18.2%, down from 20% in the prior year, affected by higher labor and occupancy costs. The company successfully opened three new restaurants during the quarter and two more subsequent to quarter-end, reaching its target of 14 new restaurants. For fiscal 2025, Kura expects total sales of $281 million and plans to open 15 new units, maintaining a growth rate above 20%. Adjusted EBITDA rose by 20% to $5.4 million from $4.5 million in the prior year. The company is optimistic about future performance, with plans to enhance its marketing strategy, including seven to eight IP collaborations in fiscal 2026 and a fully implemented reservation system expected to drive operational efficiencies.

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 Price86.11
Price Trends
50DMA
80.13
Positive
100DMA
68.67
Positive
200DMA
77.48
Positive
Market Momentum
MACD
2.46
Positive
RSI
53.00
Neutral
STOCH
39.53
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 86.11 is above the 20-day moving average (MA) of 83.04, above the 50-day MA of 80.13, and above the 200-day MA of 77.48, indicating a bullish trend. The MACD of 2.46 indicates Positive momentum. The RSI at 53.00 is Neutral, neither overbought nor oversold. The STOCH value of 39.53 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 53 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
69
Neutral
$1.09B272.940.69%14.43%-53.71%
68
Neutral
$544.66M15.947.36%3.62%17.67%
65
Neutral
$1.04B-4.77%18.76%-1259.53%
64
Neutral
$761.67M28.677.12%4.07%-1.24%
61
Neutral
$16.54B10.12-9.01%3.34%1.45%-22.43%
60
Neutral
$897.02M14.87-10.29%0.85%-571.58%
51
Neutral
$761.30M24.59%8.72%-11.45%-116.47%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KRUS
Kura Sushi USA
86.11
28.13
48.52%
BH
Biglari Holdings
291.89
103.83
55.21%
BJRI
BJ's Restaurants
34.44
5.73
19.96%
BLMN
Bloomin' Brands
8.95
-6.00
-40.13%
FWRG
First Watch Restaurant Group
17.85
1.16
6.95%
PTLO
Portillo's
7.28
-3.01
-29.25%

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: Jul 24, 2025