IRVINE, Calif., Dec. 17, 2025 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. ("Kura Sushi" or the "Company"), (NASDAQ: KRUS), a technology-enabled Japanese restaurant concept, today announced that it will host a conference call to discuss fiscal first quarter 2026 financial results on Wednesday, January 7, 2026, at 5:00 p.m. ET. A press release with fiscal first quarter 2026 financial results will be issued that same day after the market closes. Hosting the conference call and webcast will be Hajime "Jimmy" Uba, ...

Core Thesis - Kura Sushi USA (KRUS) may present a buying opportunity based on technical analysis, as its stock price exhibits an oscillating chart pattern, distinguishing it from other restaurant stocks [1] Company Analysis - Kura Sushi USA's stock price behavior is characterized by oscillation, suggesting potential for investment [1] - The analysis indicates a focus on long-term investment strategies, with an intention to hold stocks for several years [1] Analyst Background - The author has a background in writing for the Motley Fool Blogging Network and has received several editor's choice awards, indicating a level of expertise in the restaurant and retail sectors [1]

Core Insights - Kura Sushi reported Q3 CY2025 revenue of $79.45 million, a 20.4% increase year-on-year, exceeding analyst estimates of $78.95 million by 0.6% [1][6] - The company's full-year revenue guidance of $332 million is 2.1% below analysts' expectations [1] - Non-GAAP profit per share was $0.20, surpassing consensus estimates by 63.4% [1][6] Financial Performance - Adjusted EBITDA for the quarter was $7.41 million, slightly above analyst estimates of $7.36 million, with a margin of 9.3% [6] - Operating margin improved to 1.8%, up from -8.8% in the same quarter last year [6] - Same-store sales remained flat year-on-year, compared to a decline of 3.1% in the same quarter last year [6] - The company operated 79 locations at the end of the quarter, an increase from 64 locations in the same quarter last year [6] - Market capitalization stands at $587.9 million [6] Management Commentary - Management expressed concerns over sluggish same-store sales and cautious consumer behavior, attributing flat comparable sales to a challenging operating environment [3] - Marketing initiatives, including intellectual property collaborations and targeted promotions, were highlighted as crucial in mitigating worse outcomes [3][5] - Future strategies include updates to the rewards program, marketing of the reservation system, and the rollout of robotic dishwashers to enhance productivity and customer engagement [4] - CFO noted that restaurant-level operating profit margins are expected to remain below historical targets due to ongoing cost pressures [4]

Core Insights - Kura Sushi reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, and showing an increase from $0.09 per share a year ago, resulting in an earnings surprise of +17.65% [1] - The company achieved revenues of $79.45 million for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 0.87% and up from $66.01 million year-over-year [2] - Kura Sushi has outperformed consensus EPS estimates three times in the last four quarters [2] Earnings Performance - The company had a significant earnings surprise of +350% in the previous quarter, where it reported earnings of $0.05 per share against an expected loss of $0.02 [1] - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $75.6 million, and for the current fiscal year, it is $0.36 on revenues of $335.71 million [7] Stock Performance and Outlook - Kura Sushi shares have declined approximately 35.1% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] - The outlook for the Retail - Restaurants industry, where Kura Sushi operates, is currently in the bottom 12% of Zacks industries, which may negatively impact stock performance [8]

Financial Data and Key Metrics Changes - Total sales for Q4 2025 were $79.4 million, up from $66 million in the prior year period, representing a comparable sales growth of 0.2% [5][3] - Adjusted EBITDA grew over 30% year-over-year, reaching $7.4 million compared to $5.5 million in the prior year quarter [3][5] - Net income was $2.3 million or $0.18 per share, compared to a net loss of $5.2 million or negative $0.46 per share in the prior year quarter [5][3] - General and administrative expenses as a percentage of sales improved to 11.7% from 20.3% in the prior year quarter [5][3] Business Line Data and Key Metrics Changes - Labor as a percentage of sales improved to 31.1% from 31.4% in the prior year quarter, despite ongoing labor inflation [3][5] - Restaurant-level operating profit as a percentage of sales was 19.8%, down from 20.9% in the prior year quarter [5][3] - Food and beverage costs as a percentage of sales remained stable at 28.4% compared to 28.5% in the prior year quarter [5][3] Market Data and Key Metrics Changes - Comparable sales in the West Coast market were negative 0.6%, while the Southwest market saw positive growth of 1.6% [5] - Effective pricing for the quarter was 3.5%, with a menu price increase of 3.5% implemented on November 1st [5][3] Company Strategy and Development Direction - The company plans to open 16 new units in fiscal 2026, maintaining an annual unit growth rate above 20% [5][3] - The introduction of status tiers to the rewards program is underway, aimed at enhancing customer engagement [3] - The company is focusing on improving product offerings and sourcing, with a commitment to providing unbeatable value to customers [28][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro pressures affecting the industry but expressed confidence in the company's resilience and growth potential for fiscal 2026 [3][5] - The expectation for Q1 2026 is a negative mid-single-digit comparable sales growth, attributed to year-over-year comparisons rather than a worsening environment [11][13] - The company anticipates a restaurant-level operating profit margin of approximately 18% for fiscal 2026 [5][3] Other Important Information - The company has secured commercial use certification for its robotic dishwasher, which is expected to improve labor efficiency by approximately 50 basis points [4][19] - Cash and investments at the end of Q4 2025 totaled $92 million, with no debt [5][3] Q&A Session Summary Question: Insights on recent comp trends and IP collaborations - Management noted that while macro pressures exist, marketing efforts have helped maintain positive comps, with IP collaborations contributing positively [9][10] Question: Expectations for Q1 comp trends - The expectation for Q1 is negative mid-single digits due to challenging year-over-year comparisons, with a focus on maintaining traffic [11][13] Question: Implementation timeline for robotic dishwashers - Implementation is expected to start in Q3 2026, with a more pronounced impact on labor efficiency anticipated in fiscal 2027 [21] Question: Strategic changes in response to consumer challenges - The company is focused on incremental improvements across departments to enhance value perception among consumers [28][29] Question: Impact of tariffs on costs and pricing strategy - The company has taken a 3.5% price increase and expects COGS to be around 30% for fiscal 2026, reflecting ongoing negotiations with suppliers [23][5] Question: New store productivity and AUVs - New store productivity has improved, with the latest class of openings performing strongly, contributing positively to the AUV comp base [35][36] Question: Reservation system impact and improvements - The reservation system has not been a major traffic driver yet, but improvements are being made to enhance user experience and operational efficiency [41][43]

Financial Performance and Risks - Comparable restaurant sales growth is crucial for the company's sales and profit, with potential adverse effects if growth is less than expected [95] - Changes in food and supply costs could adversely affect profitability, particularly for critical ingredients like rice and seafood [112] - Economic conditions, including changes in U.S. trade policy, could impact consumer discretionary spending and restaurant sales [116] - The restaurant industry faces significant competition, which could materially affect the company's financial condition and results of operations [115] - Labor costs are a primary component of operating expenses, and increased labor costs could adversely affect growth and profitability [137] - Quarterly operating results may fluctuate significantly due to factors such as inflation, labor availability, and changes in consumer preferences [157] Operational Challenges - The company may face challenges in managing growth effectively, requiring enhancements to systems and controls [96] - The company faces risks related to food safety and foodborne illnesses, which could adversely affect its business and financial condition [117] - Negative publicity from foodborne illness incidents at any restaurant could lead to a nationwide decline in sales [118] - The reliance on third-party vendors for food safety increases the risk of widespread foodborne illness incidents [117] - Mechanical failures of automated equipment, such as sushi robots and conveyor belts, could disrupt restaurant operations and lead to unplanned capital investments [122] - The company may face challenges in attracting and retaining qualified personnel, which could delay new restaurant openings and increase turnover rates [138] - Changes in employment laws and regulations could require additional pay increases or benefits, impacting operating costs [144] - The company is subject to various federal, state, and local regulations that could delay or prevent the opening of new restaurants [146] Supplier and Cost Dependencies - JFC provided 58%, 55%, and 49% of total food and beverage costs in fiscal years 2025, 2024, and 2023 respectively, indicating reliance on key suppliers [110] - Approximately 44% of the company's restaurants are located in California and Texas, making it susceptible to adverse conditions in these states [99] - The average cash build-out cost for new restaurants opened in fiscal year 2025 was approximately $2.5 million per restaurant [98] Financial Structure and Stock Information - The company has federal net operating loss carryforwards of approximately $39.6 million and federal tax credit carryover of approximately $10.3 million as of August 31, 2025 [154] - The company does not intend to pay dividends for the foreseeable future, retaining earnings for operations, expansion, and debt repayment [166] - The company has authorized the issuance of up to 50,000,000 shares of Class A common stock and 10,000,100 shares of Class B common stock, with 11,110,742 shares of Class A and 1,000,050 shares of Class B outstanding as of August 31, 2025 [161] - The existence of two classes of common stock may result in less liquidity for Class A common stock compared to a single class structure [156] - Kura Japan controls 67% of the combined voting power of the company's equity interests, influencing corporate management and decisions [172] - Future sales of common stock could depress the market price, particularly if substantial shares are sold by Kura Japan [161] Governance and Compliance - The company is considered a "controlled company" under Nasdaq standards, exempting it from certain corporate governance requirements [173] - The exclusive forum provisions in the company's charter may limit stockholders' ability to bring claims in favorable judicial forums [169] - The board of directors is authorized to issue up to 1,000,000 shares of preferred stock without stockholder approval, which could negatively affect the rights and value of Class A common stock [164] - Cybersecurity vulnerabilities could result in breaches of customer and employee data, adversely impacting the company's reputation and financial condition [125] - The company relies heavily on social media for marketing, and failure to adapt to digital trends could negatively affect brand relevance and sales [127] - Long-term non-cancelable leases represent a significant portion of operating expenses, and failure to negotiate renewals could lead to increased costs or restaurant closures [132] - Macroeconomic conditions affecting landlords could impact the company's lease agreements and overall restaurant traffic [134] Strategic Relationships - The company relies on Kura Japan for strategic, operational, and financial support, which may be affected by changes in ownership interest [101] - The company has a $45.0 million revolving credit line with Kura Japan, with no outstanding balance as of August 31, 2025 [104] - Kura Japan purchased 126,500 shares of Class A common stock in fiscal year 2021 as part of a public offering of 1,265,000 shares [135] - In fiscal year 2023 and fiscal year 2025, the company completed public offerings of 1,265,000 shares and 800,328 shares of Class A common stock, respectively [135] - The company may face conflicts of interest due to Kura Japan's significant influence over corporate decisions and potential differing interests [175]

Sales Performance - Total sales for Q4 2025 were $79.4 million, up from $66.0 million in Q4 2024, representing a growth of approximately 20.5%[6] - Total sales for fiscal year 2025 were $282.8 million, an increase from $237.9 million in fiscal year 2024, reflecting a growth of approximately 18.8%[13] - Sales for the three months ended August 31, 2025, increased to $79,448,000, up 20.4% from $66,012,000 in the same period of 2024[33] Profitability - Adjusted net income for Q4 2025 was $2.5 million, or $0.20 per diluted share, compared to $1.0 million, or $0.09 per diluted share in Q4 2024, marking a 150% increase[8] - Net loss for fiscal year 2025 was $1.9 million, or $(0.16) per diluted share, significantly improved from a net loss of $8.8 million, or $(0.79) per diluted share in fiscal year 2024[14] - Net income for the three months ended August 31, 2025, was $2,273,000, compared to a net loss of $5,201,000 in the same period of 2024[33] - The company reported an operating income of $1,464,000 for the three months ended August 31, 2025, compared to a loss of $5,805,000 in the same period of 2024[33] Operating Metrics - Restaurant-level operating profit for Q4 2025 was $15.7 million, or 19.8% of sales, compared to $13.8 million, or 20.9% of sales in Q4 2024[12] - Restaurant-level operating profit for the three months ended August 31, 2025, was $15,698,000, with a margin of 19.8%, slightly down from 20.9% in 2024[42] - Comparable restaurant sales increased by 0.2% in Q4 2025, driven by a traffic increase of 0.5% and a price/mix decrease of 0.3% compared to Q4 2024[6] - Comparable restaurant sales performance for the three months ended August 31, 2025, was 0.2%, a recovery from a decline of 3.1% in the same period of 2024[34] Expenses and Efficiency - General and administrative expenses as a percentage of sales decreased to 11.7% in Q4 2025 from 20.3% in Q4 2024, primarily due to sales leverage and reduced litigation expenses[10] - General and administrative expenses for the three months ended August 31, 2025, decreased to $9,288,000 from $13,416,000 in 2024, improving efficiency[38] Future Projections and Expansion - For fiscal year 2026, the company projects total sales between $330 million and $334 million, with plans to open 16 new restaurants[17] - The company opened a record of 15 new locations during fiscal year 2025, contributing to its expansion strategy[5] Asset Growth - Total assets as of August 31, 2025, rose to $430,942,000, up from $328,522,000 in 2024, indicating strong asset growth[35] - Total stockholders' equity increased to $231,070,000 as of August 31, 2025, compared to $162,538,000 in 2024, reflecting improved financial health[35] EBITDA - Adjusted EBITDA for fiscal year 2025 was $19.1 million, compared to $14.6 million in fiscal year 2024, indicating a growth of approximately 30.8%[15] - Adjusted EBITDA for the twelve months ended August 31, 2025, was $19,065,000, a significant increase from $14,564,000 in 2024, reflecting a margin improvement to 6.7% from 6.1%[40]

Core Insights - Kura Sushi reported Q3 CY2025 results that exceeded market revenue expectations, with a year-on-year sales increase of 20.4% to $79.45 million [1][7] - The company's full-year revenue guidance of $332 million at the midpoint was 1.9% below analysts' estimates [1] - Non-GAAP profit of $0.20 per share was 63.4% above analysts' consensus estimates [1] Company Performance - Kura Sushi opened a record of 15 new locations during fiscal 2025, contributing to its growth [3] - The company managed to control corporate G&A expenses, resulting in an annual adjusted EBITDA growth of over 30% [3] - Despite challenges such as a volatile consumer environment and tariff pressures, Kura Sushi remains optimistic about continued growth in fiscal 2026 [3] Revenue and Growth Metrics - Kura Sushi's revenue over the past 12 months was $282.8 million, indicating potential for faster growth compared to larger competitors [5] - The company achieved a compounded annual growth rate of 28% in sales over the last six years, normalizing for COVID-19 impacts [6] - Same-store sales were flat year on year, with a slight decline of 3.1% in the same quarter last year [7] Financial Highlights - Revenue for Q3 was $79.45 million, beating analyst estimates of $78.95 million by 0.6% [7] - Adjusted EPS of $0.20 surpassed analyst estimates of $0.12 by 63.4% [7] - Adjusted EBITDA was $7.41 million, slightly above analyst estimates of $7.36 million, with a margin of 9.3% [7] - Operating margin improved to 1.8%, up from -8.8% in the same quarter last year [7] - The company had 79 locations at the end of the quarter, an increase from 64 in the same quarter last year [7] - Market capitalization stood at $711.5 million [7]

Core Insights - Kura Sushi USA, Inc. reported strong financial results for the fiscal fourth quarter and fiscal year ended August 31, 2025, with total sales reaching $79.4 million, a significant increase from $66.0 million in the same quarter of 2024 [5][10]. - The company opened a record 15 new locations during fiscal 2025, contributing to its growth despite challenges in the consumer environment and tariff pressures [4][16]. Fiscal Fourth Quarter 2025 Highlights - Total sales increased to $79.4 million from $66.0 million in Q4 2024, with comparable restaurant sales rising by 0.2% [5][10]. - Restaurant-level operating profit was $15.7 million, representing 19.8% of sales, compared to $13.8 million or 20.9% of sales in Q4 2024 [11][38]. - Adjusted EBITDA for the quarter was $7.4 million, up from $5.5 million in Q4 2024 [12][38]. - Net income was $2.3 million, or $0.18 per diluted share, compared to a net loss of $5.2 million, or $(0.46) per diluted share, in Q4 2024 [10][11]. Fiscal Year 2025 Financial Results - Total sales for the fiscal year reached $282.8 million, up from $237.9 million in fiscal year 2024 [13]. - Comparable restaurant sales decreased by 1.3%, with traffic down 3.1% but offset by a price/mix increase of 1.8% [13]. - The average unit volume (AUV) was $3.9 million, down from $4.2 million in the previous year [13]. - Adjusted net income for the fiscal year was $0.4 million, or $0.03 per diluted share, compared to an adjusted net loss of $1.8 million, or $(0.16) per diluted share, in fiscal year 2024 [14]. Restaurant Development - In Q4 2025, Kura Sushi opened three new restaurants in Texas, Utah, and Colorado, with an additional three locations opened post-August 31, 2025, in California and New Jersey [16]. Fiscal Year 2026 Outlook - The company projects total sales between $330 million and $334 million for fiscal year 2026, with plans to open 16 new restaurants, maintaining an annual unit growth rate above 20% [21]. - General and administrative expenses are expected to be between 12.0% and 12.5% of sales, with restaurant-level operating profit margins around 18% [21].

Core Points - Kura Sushi USA, Inc. will host a conference call on November 6, 2025, to discuss its fiscal fourth quarter and fiscal year 2025 financial results [1] - The conference call will be led by key executives including the President and CEO, CFO, and SVP of Investor Relations [1] - A press release with the financial results will be issued after market close on the same day [1] Company Overview - Kura Sushi USA, Inc. operates 81 locations across 22 states and Washington DC, offering a unique dining experience with authentic Japanese cuisine and a revolving sushi service model [3] - The company was established in 2008 as a subsidiary of Kura Sushi, Inc., which has over 650 restaurants globally and a 45-year brand history [3]