IRVINE, Calif., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”), (NASDAQ: KRUS), a technology-enabled Japanese restaurant concept, today announced that Claudia Schaefer has been elected to serve as an independent member of the Board of Directors effective January 21, 2026. In conjunction with Ms. Schaefer’s nomination, Kim Ellis did not stand for re-election as a director, also effective January 21, 2026. Hajime Uba, President, Chief Executive Officer and Chairman of K ...

Financial Data and Key Metrics Changes - The company reported a strong performance in November and December, with traffic and ticket-driven growth leading to better-than-expected comparable sales [4][5] - Effective pricing increased by 4.5% as of November 1st, contributing to improved flow-through and traffic [7][12] - The company expects a restaurant-level margin of 18% for fiscal 2026, with a goal to reach closer to 20% by fiscal 2027 [13][15] Business Line Data and Key Metrics Changes - The company is experiencing a 20% annual growth rate in unit openings, aiming for over 300 units in the U.S. [2] - The class of 2025 openings is outperforming previous classes by at least 10%, attributed to improved site selection and landlord relationships [19][20] Market Data and Key Metrics Changes - The company has 83 units across 22 states and the District of Columbia, demonstrating a broad market presence [1] - The competitive landscape includes local mom-and-pop sushi restaurants, which are struggling to maintain pricing due to increased costs [8][9] Company Strategy and Development Direction - The company is focused on leveraging its scale advantages to enhance guest experience and attract new customers [23] - There is an emphasis on technology integration, such as robotic dishwashers, to improve operational efficiency and reduce labor costs [41][44] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment has improved, benefiting the company's performance [5] - The company anticipates continued traffic growth as guests seek value amidst rising prices at independent competitors [9][10] Other Important Information - The company filed a $100 million shelf registration to maintain flexibility for future capital raises [27] - The Kura Rewards program has one million members, significantly increasing customer frequency and average check size [32] Q&A Session Summary Question: What drove the acceleration in November and December? - Management attributed the acceleration to a better macro setup and successful marketing campaigns [4][5] Question: How is the company managing tariff impacts? - The company shared the burden of tariffs with suppliers, resulting in a 150-200 basis point impact on COGS for the year [11][12] Question: What are the expectations for restaurant-level margins? - The company expects to maintain an 18% margin for fiscal 2026, with potential improvements in fiscal 2027 [13][15] Question: How is the class of 2025 performing compared to previous classes? - The class of 2025 is outperforming previous classes by at least 10% due to better site selection and landlord relationships [19][20] Question: What is the status of the IP partnerships? - The company expects meaningful comp outperformance due to improved IP partnerships and collaborations [30] Question: How is the Kura Rewards program evolving? - The company plans to introduce tiered statuses to enhance engagement and drive traffic [34]

Financial Data and Key Metrics Changes - The company reported a strong performance in November and December, with traffic and ticket-driven growth leading to better-than-expected comparable store sales [4][5][7] - The effective price increase of 4.5% as of November 1st contributed to improved flow-through and traffic, with an average check increase of about $1 [7][8] - The company expects a restaurant-level margin of 18% for fiscal 2026, with potential to reach closer to 20% in fiscal 2027 due to various operational improvements [13][15] Business Line Data and Key Metrics Changes - The company is experiencing a 20% annual growth rate in unit openings, aiming for over 300 units in the U.S. [2] - The class of 2025 openings is outperforming previous classes by at least 10%, attributed to better site selection and landlord relationships [19][20] Market Data and Key Metrics Changes - The company has expanded to 83 units across 22 states and the District of Columbia, demonstrating the brand's portability beyond coastal markets [21] - The competitive landscape includes local mom-and-pop sushi restaurants, which are struggling to maintain pricing, allowing Kura Sushi to capitalize on its value proposition [8][9] Company Strategy and Development Direction - The company is focused on leveraging its scale advantages to enhance guest experience and drive customer traffic, particularly among less sophisticated sushi consumers [23] - The introduction of tiered statuses in the rewards program is expected to enhance customer engagement and drive traffic [34] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment has improved, contributing to the company's strong performance in late 2023 [5] - The company is optimistic about future growth, citing the potential for continued traffic growth as guests rediscover the value offered by Kura Sushi [9] Other Important Information - The company filed a $100 million shelf registration to maintain flexibility for future capital raises, with a robust balance sheet of over $76 million in cash and investments [27] - The company is implementing robotic dishwashers, expected to improve operational efficiency and reduce labor costs [41][44] Q&A Session Summary Question: What drove the acceleration in November and December? - Management attributed the acceleration to a better macro setup and successful marketing campaigns, including the One Piece campaign [4][5] Question: What is the visibility into achieving the 18% restaurant-level margin? - Management indicated that negotiations with suppliers helped mitigate tariff impacts, and they expect to achieve the margin through operational improvements [10][12] Question: How is the class of 2025 performing compared to previous classes? - The class of 2025 is outperforming previous classes by at least 10%, aided by improved site selection and landlord relationships [19][20] Question: Can you elaborate on the IP partnerships and their impact? - Management expressed optimism about the IP pipeline, noting that the quality of partnerships continues to improve year over year [30] Question: What are the plans for the rewards program? - The company plans to introduce tiered statuses to enhance engagement and drive traffic, while also decoupling the reservation system from the rewards program to increase accessibility [32][34]

Financial Data and Key Metrics Changes - Kura Sushi reported a strong performance in November and December, with traffic and ticket-driven growth leading to better-than-expected comparable sales [5][6] - The company is guiding for an 18% restaurant-level margin for fiscal 2026, with expectations to improve to around 20% in fiscal 2027 [12][13] - Cost of goods sold (COGS) is expected to be approximately 30% for the year, influenced by tariffs and a 3.5% price increase implemented on November 1st [12][15] Business Line Data and Key Metrics Changes - The company is experiencing a 20% annual growth rate in unit openings, aiming for over 300 locations in the U.S. [3] - The class of 2025 openings is outperforming previous classes by at least 10%, attributed to improved site selection and landlord relationships [18][19] Market Data and Key Metrics Changes - Kura Sushi's competitive advantage is highlighted by its ability to attract customers from local mom-and-pop sushi restaurants, especially as these competitors struggle with pricing [7][8] - The company has a robust balance sheet with over $76 million in cash and investments, providing liquidity and optionality for future growth [26] Company Strategy and Development Direction - Kura Sushi is focused on expanding its footprint while enhancing guest experience through automation and technology, such as the introduction of robotic dishwashers [41][44] - The company is leveraging IP partnerships to drive brand awareness and customer engagement, with a strong pipeline of collaborations expected to enhance performance [27][28] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment has improved, contributing to better performance in late 2025 [6] - The company anticipates that the current pricing dynamics will continue to benefit its market position, regardless of tariff conditions [9] Other Important Information - The company has implemented a reservation system that has significantly increased engagement among rewards program members, with plans to introduce tiered statuses to enhance the program [30][33] - Kura Sushi is actively working on marketing strategies to attract new customers, focusing on experiential marketing to convey the value of its offerings [35] Q&A Session Summary Question: What drove the acceleration in November and December? - Management attributed the acceleration to a better macro setup and successful marketing campaigns, including an LTO and IP campaign [6][7] Question: How does the company plan to achieve the 18% margin guidance? - The company expects to achieve the 18% margin through improved cost management and operational efficiencies, with a focus on new market openings [12][13] Question: What is the impact of tariffs on COGS? - Tariffs initially posed a significant risk, but through negotiations with suppliers, the impact was mitigated to about 150-200 basis points on COGS [11][12] Question: How is the class of 2025 performing compared to previous classes? - The class of 2025 is outperforming previous classes by at least 10%, due to better site selection and improved landlord relationships [18][19] Question: What are the future plans for the rewards program? - The company plans to introduce tiered statuses to enhance engagement and drive traffic, moving beyond a simplistic discount-driven model [33]

Core Thesis - Kura Sushi may present a buying opportunity due to its unique stock price behavior, characterized by a consistent pattern of peaks and troughs over several years [1] Company Analysis - Kura Sushi USA's stock price has shown a distinct pattern compared to other stocks, indicating potential for investment [1] Investment Strategy - The focus is on identifying long-term investment opportunities within the restaurant and food manufacturing sectors, with an emphasis on growth potential and valuation metrics [1]

Group 1 - The article emphasizes the importance for investors to remain cautious as the macroeconomic environment may present warning signals despite market highs [1] - The technology sector is highlighted as particularly sensitive to these macroeconomic indicators, suggesting potential vulnerabilities [1] - Gary Alexander's extensive experience in both Wall Street and Silicon Valley positions him as a knowledgeable commentator on current industry trends [1]

Core Viewpoint - Kura Sushi USA is optimistic about its fiscal first-quarter performance, expecting positive comparable sales in Q2 and maintaining guidance for flat to slightly positive comps for the full year, despite facing margin pressures from tariffs and sales deleverage [1][6][21]. Financial Performance - Total sales for the fiscal first quarter reached $73.5 million, an increase from $64.5 million in the prior-year period, while comparable restaurant sales declined by 2.5% due to negative traffic and flat pricing [3][7]. - The company reported an operating loss of $3.7 million and a net loss of $3.1 million, with adjusted EBITDA decreasing to $2.4 million from $3.6 million year-over-year [9][7]. Pricing Strategy - A 3.5% menu price increase was implemented on November 1, which did not fully benefit the first quarter; effective pricing for the quarter was noted at 3.5%, with expectations of 4.5% in the fiscal second quarter [2][6]. Margin Analysis - Food and beverage costs accounted for 29.9% of sales, up from 29.0%, attributed to tariffs on imported ingredients; labor costs decreased to 32.5% of sales from 32.9% due to pricing and operational initiatives [10]. - The restaurant-level operating profit margin was 15.1%, down from 18.2% in the prior-year quarter, with management expecting margins to stabilize around 18% for the full year [11][6]. Growth and Development - Kura Sushi opened four new restaurants during the quarter and has 10 more under construction, aiming for a total of 16 new units in fiscal 2026 [5][13]. - The company ended the quarter with $78.5 million in cash and no debt, indicating strong liquidity [14]. Marketing and Loyalty Initiatives - The company has reached 1 million rewards members, with members spending approximately $6 more per person compared to non-members [18]. - Kura Sushi is enhancing its marketing strategy with collaborations and promotions, including themed offerings tied to popular franchises [15][16]. Operational Improvements - Robotic dishwashers are scheduled for installation in Q3, with expectations for improved labor costs in fiscal 2026 through various operational initiatives [19]. - Management is optimistic about improving labor leverage and reducing general and administrative expenses through aggressive cost management [4][10]. Guidance and Outlook - Kura Sushi reiterated its fiscal 2026 guidance, projecting total sales between $330 million and $334 million, with an expected restaurant-level operating profit margin of approximately 18% [24][20].

Financial Data and Key Metrics Changes - Total sales for the fiscal first quarter were $73.5 million, up from $64.5 million in the prior year period, representing a comparable sales growth of negative 2.5% [10][12] - Cost of goods sold as a percentage of sales was 29.9%, compared to 29% in the prior year quarter, influenced by tariffs on imported ingredients [11][12] - Labor costs as a percentage of sales decreased to 32.5% from 32.9% in the prior year, attributed to operational initiatives [6][11] - Net loss was $3.1 million, or negative $0.25 per share, compared to a net loss of $1 million, or negative $0.08 per share in the prior year [12][14] - Adjusted net loss was $2.8 million, or negative $0.23 per share, compared to an adjusted net loss of $1 million, or negative $0.08 per share in the prior year [13] Business Line Data and Key Metrics Changes - The company opened four new restaurants in the first quarter and has 10 units under construction, with plans to open one more in the fiscal second quarter [4][7] - Restaurant-level operating profit as a percentage of sales was 15.1%, down from 18.2% in the prior year quarter [13] Market Data and Key Metrics Changes - Comparable sales in the West Coast market were negative 2.8%, and in the Southwest market, they were negative 2.7% [10] - Effective pricing for the quarter was 3.5%, with expectations for the second quarter to be 4.5% after lapping prior year increases [10] Company Strategy and Development Direction - The company aims to open 16 new units in fiscal 2026, maintaining an annual unit growth rate above 20% [14] - The focus on aggressive cost management has reduced general and administrative expenses as a percentage of sales by 80 basis points on an adjusted basis [4] - The company is leveraging technology, such as robotic dishwashers, to improve operational efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving qualitative comparable sales for the year, citing strong momentum from the end of the first quarter into the second [4][26] - The management noted that the pricing taken in November has led to improved traffic and sales, indicating a positive consumer response [26][32] - There is optimism regarding the potential for improved margins and sales as the company navigates tariff impacts and operational efficiencies [32][46] Other Important Information - The company has $78.5 million in cash and no debt, indicating strong liquidity [14] - The company is currently engaged in marketing campaigns tied to popular IPs, which have been well received by customers [8][105] Q&A Session Summary Question: Discussion on decoupling the reservation system from loyalty - Management noted that more than half of visits by rewards members are through the reservation system, indicating better-than-expected uptake [21][22] Question: Expectations for Q2 comparable sales - Management expects positive comps for Q2, supported by strong performance in November and December [26] Question: Impact of tariffs on food costs - Management indicated that food costs are expected to be around 30%, with a significant impact from tariffs, but negotiations have helped mitigate some costs [31][32] Question: Future promotions and collaborations - Management highlighted successful collaborations with popular IPs and plans for future promotions, including Sanrio and Jujutsu Kaisen [107] Question: Long-term growth targets - Management reiterated the target of 16 new units for the year, with no changes to the long-term growth target of 300 units in the U.S. [95][61]

Financial Data and Key Metrics Changes - Total sales for the fiscal first quarter were $73.5 million, compared to $64.5 million in the prior year period, representing a year-over-year increase of approximately 12.4% [9] - Comparable sales growth was negative 2.5%, with a negative traffic of 2.5% and flat price and mix [9] - Adjusted net loss was $2.8 million, or negative $0.23 per share, compared to an adjusted net loss of $1 million, or negative $0.08 per share in the prior year quarter [13] - Restaurant-level operating profit as a percentage of sales was 15.1%, compared to 18.2% in the prior year quarter [13] Business Line Data and Key Metrics Changes - The company opened four new restaurants in the first quarter and has 10 units under construction, including locations in new markets [7] - Labor as a percentage of sales improved to 32.5% from 32.9% in the prior year period due to operational initiatives [6] - Cost of goods as a percentage of sales increased to 29.9% from 29% in the prior year quarter, impacted by tariffs [10] Market Data and Key Metrics Changes - Comparable sales in the West Coast market were negative 2.8%, while the Southwest market saw negative 2.7% [9] - The company expects full-year costs to stabilize around 30% after considering tariffs and menu price adjustments [6] Company Strategy and Development Direction - The company aims to open 16 new restaurants in fiscal 2026, maintaining an annual unit growth rate above 20% [13] - Marketing efforts include a campaign with Kirby, coinciding with the release of Kirby Air Riders for Switch 2, and the introduction of a reservation system decoupled from the rewards program [7][8] - The company is focused on aggressive cost management, reducing G&A as a percentage of sales by 80 basis points on an adjusted basis [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive comparable sales for the year, citing strong performance in November and December [25] - The company anticipates that the pricing taken in November will continue to support sales growth and improve traffic [25] - Management noted that the broader industry is showing signs of improvement, which is encouraging for future performance [53] Other Important Information - The company has $78.5 million in cash, cash equivalents, and investments, with no debt [13] - General and administrative expenses as a percentage of sales were 13%, down from 13.5% in the prior year quarter [11] Q&A Session Summary Question: What led to the decision to decouple the reservation system from loyalty? - Management noted that more than half of visits by rewards members are through the reservation system, indicating better-than-expected uptake [20] Question: Do you expect positive comps in the February quarter? - Management confirmed expectations for positive comps in Q2, supported by strong performance in November and December [25] Question: How long would it take for tariff relief to impact financials? - Management indicated it would take 60 to 90 days to see benefits from reduced tariffs due to inventory turnover [30] Question: Can you comment on the impact of tariffs on other expense lines? - Management stated that tariffs have significantly impacted promotional costs, particularly for items sourced from overseas [100] Question: How are rewards members performing in terms of spending? - Management reported that rewards members spend about $6 more per person compared to non-members, with a significant increase in visit frequency [75] Question: What are the future planned promotions for the year? - Upcoming promotions include Sanrio for February and Jujutsu Kaisen for March and April [108]

Financial Data and Key Metrics Changes - Total sales for Q1 2026 were $73.5 million, up from $64.5 million in the prior year, with comparable sales growth of negative 2.5% [5][10] - Cost of goods sold as a percentage of sales increased to 29.9% from 29% in the prior year quarter, influenced by tariffs [5][11] - Labor costs as a percentage of sales decreased to 32.5% from 32.9% in the prior year, due to operational initiatives [5][11] - Net loss for the quarter was $3.1 million, or negative $0.25 per share, compared to a net loss of $1 million, or negative $0.08 per share in the prior year [12][13] - Adjusted net loss was $2.8 million, or negative $0.23 per share, compared to an adjusted net loss of $1 million, or negative $0.08 per share in the prior year [13] Business Line Data and Key Metrics Changes - The company opened four new restaurants in Q1 2026, with ten more under construction [6] - Restaurant-level operating profit as a percentage of sales was 15.1%, down from 18.2% in the prior year quarter [13] Market Data and Key Metrics Changes - Comparable sales in the West Coast market were negative 2.8%, and in the Southwest market, they were negative 2.7% [10] - Effective pricing for the quarter was 3.5%, with expectations for the second quarter to be 4.5% [10] Company Strategy and Development Direction - The company aims to open 16 new restaurants in fiscal 2026, maintaining an annual unit growth rate above 20% [14] - The company is focusing on aggressive cost management, reducing G&A as a percentage of sales by 80 basis points on an adjusted basis [4] - Marketing efforts include a campaign with Kirby, coinciding with the release of Kirby Air Riders for Switch 2, and the introduction of a reservation system [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving qualitative comparable sales for the year, with expectations for positive comps in Q2 [4][23] - The company noted that the first quarter created a strong foundation for growth, with momentum continuing into December [5][23] - Management acknowledged the impact of tariffs on costs but expressed optimism about negotiations with suppliers mitigating some of the pressures [28][81] Other Important Information - The company has $78.5 million in cash and no debt, indicating strong liquidity [13] - General and administrative expenses as a percentage of sales were 13%, down from 13.5% in the prior year quarter [12] Q&A Session Summary Question: Discussion on decoupling the reservation system from loyalty - Management reported that over half of visits by rewards members are through the reservation system, indicating better-than-expected uptake [19] Question: Expectations for Q2 comps - Management expects positive comps for Q2, citing strong performance in November and December [23] Question: Impact of tariffs on food costs - Management indicated that it takes 4-6 months to see the impact of tariff changes on food costs due to inventory cycles [27] Question: Future promotions and collaborations - Management confirmed ongoing promotions with Kirby and upcoming collaborations with Sanrio and Jujutsu Kaisen [88] Question: Long-term growth target - Management did not revise the long-term growth target of 300 units in the U.S. but will provide updates as necessary [78]