[Q3 2025 Financial Highlights](index=1&type=section&id=Fiscal%20Third%20Quarter%202025%20Highlights) Kura Sushi reported total sales of $74.0 million, a significant increase from the previous year, achieved a net income of $0.6 million, and opened three new restaurants, despite a 2.1% decrease in comparable restaurant sales Q3 2025 Key Performance Indicators (vs. Q3 2024) | Metric | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | Total Sales | $74.0 million | $63.1 million | | Comparable Restaurant Sales | -2.1% | N/A | | Operating Loss | $0.2 million | $1.2 million | | Net Income (Loss) | $0.6 million | $(0.6) million | | Diluted EPS | $0.05 | $(0.05) | | Adjusted Net Income | $0.6 million | $4 thousand | | Restaurant-level Operating Profit* | $13.5 million | N/A | | Adjusted EBITDA* | $5.4 million | N/A | | New Restaurants Opened | 3 | N/A | - CEO Hajime Uba expressed satisfaction with the quarter's results, highlighting progress in the new reservation system, exploration of new market opportunities, and strategy for Bikkurapon collaborations to prepare for fiscal 2026[4](index=4&type=chunk) [Detailed Financial Analysis (Q3 2025)](index=1&type=section&id=Review%20of%20Fiscal%20Third%20Quarter%202025%20Financial%20Results) The company's total sales grew due to new restaurant openings, though comparable sales declined, while the operating loss narrowed significantly and the company swung to a net profit, with improved food and beverage expenses as a percentage of sales, but increased labor costs [Sales and Profitability](index=1&type=section&id=Sales%20and%20Profitability) Total sales increased by 17.3% to $74.0 million, primarily driven by the opening of thirteen new restaurants, partially offset by a 2.1% decrease in comparable restaurant sales, leading to a turnaround from a prior-year net loss to a net income of $0.6 million Q3 Sales and Profitability Comparison (in millions) | Metric | Q3 2025 | Q3 2024 | Change | | :--- | :--- | :--- | :--- | | Total Sales | $74.0 | $63.1 | +17.3% | | Comparable Restaurant Sales | -2.1% | N/A | N/A | | Operating Loss | $(0.2) | $(1.2) | +82.9% | | Net Income (Loss) | $0.6 | $(0.6) | Turnaround to Profit | - The **2.1% decrease** in comparable restaurant sales was composed of a **2.9% decrease** in traffic, partially offset by a **0.8% increase** from price and product mix[5](index=5&type=chunk) [Cost Structure Analysis](index=1&type=section&id=Cost%20Structure%20Analysis) Food and beverage costs improved to 28.3% of sales from 29.2% year-over-year, while labor costs rose to 33.1% of sales from 32.6%, and General and Administrative (G&A) expenses decreased to 11.8% of sales from 14.0% Cost as a Percentage of Sales | Cost Category | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | Food and Beverage | 28.3% | 29.2% | | Labor and Related | 33.1% | 32.6% | | Other Costs | 14.7% | 14.1% | | General & Administrative | 11.8% | 14.0% | - The decrease in G&A expenses as a percentage of sales was primarily due to sales leverage and a reduction in professional fees and litigation expenses[9](index=9&type=chunk) - Occupancy expenses increased in absolute terms to **$5.5 million** from **$4.3 million**, driven by the opening of thirteen new restaurants since Q3 2024[7](index=7&type=chunk) [Restaurant Development](index=2&type=section&id=Restaurant%20Development) Kura Sushi continued its expansion by opening three new restaurants during the third quarter in Arizona, Washington, and Texas, with two additional restaurants opened subsequent to the quarter's end, bringing the total to 78 locations - **Three new restaurants** were opened during Q3 2025 in: - Scottsdale, Arizona - Lynnwood, Washington - McKinney, Texas[12](index=12&type=chunk) - Subsequent to the quarter end (May 31, 2025), **two more restaurants** were opened in The Woodlands, Texas and Salt Lake City, Utah[12](index=12&type=chunk) [Fiscal Year 2025 Outlook](index=2&type=section&id=Fiscal%20Year%202025%20Outlook) The company updated its full-year guidance for fiscal 2025, projecting total sales of approximately $281 million, planning to open 15 new restaurants, and expecting general and administrative expenses to be below 13.0% of sales Updated FY 2025 Guidance | Metric | Guidance | | :--- | :--- | | Total Sales | Approx. $281 million | | New Restaurants | 15 (annual unit growth > 20%) | | Avg. Net Capex per Unit | Approx. $2.5 million | | G&A Expenses (% of Sales) | Below 13.0% (excl. legal settlements) | [Financial Statements](index=6&type=section&id=Financial%20Statements) This section provides the detailed, unaudited financial statements for the third quarter and nine months ended May 31, 2025, including the income statement, selected balance sheet and operating data, and reconciliations of GAAP to non-GAAP measures [Statements of Operations](index=6&type=section&id=Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) For the three months ended May 31, 2025, the company reported sales of $74.0 million and a net income of $0.6 million, or $0.05 per diluted share, a significant improvement from the same period in 2024, which saw sales of $63.1 million and a net loss of $0.6 million Consolidated Statements of Operations (in thousands, for Three Months Ended May 31) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Sales | $73,965 | $63,082 | | Total operating expenses | $74,127 | $64,251 | | **Operating loss** | **$(162)** | **$(1,169)** | | Income (loss) before income taxes | $620 | $(498) | | **Net income (loss)** | **$565** | **$(558)** | | Diluted EPS | $0.05 | $(0.05) | [Selected Balance Sheet and Operating Data](index=7&type=section&id=Selected%20Balance%20Sheet%20Data%20and%20Selected%20Operating%20Data) As of May 31, 2025, the company held $47.1 million in cash and cash equivalents and had total assets of $419.4 million, with the total number of restaurants growing to 76, while restaurant-level operating profit margin was 18.2% and Adjusted EBITDA margin slightly increased to 7.3% Selected Balance Sheet Data (in thousands) | Account | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $47,132 | $50,986 | | Total assets | $419,373 | $328,522 | | Total liabilities | $192,369 | $165,984 | | Total stockholders' equity | $227,004 | $162,538 | Selected Operating Data (for Three Months Ended May 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Restaurants at end of period | 76 | 63 | | Comparable restaurant sales | (2.1)% | 0.6% | | Adjusted EBITDA | $5,410 | $4,451 | | Restaurant-level operating profit | $13,492 | $12,604 | | Restaurant-level operating profit margin | 18.2% | 20.0% | [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The company provides reconciliations for its non-GAAP metrics, showing Adjusted Net Income of $0.6 million, Adjusted EBITDA of $5.4 million, and Restaurant-level operating profit of $13.5 million for Q3 2025 Reconciliation to Adjusted EBITDA (Q3 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $565 | | Interest income, net | $(782) | | Income tax expense | $55 | | Depreciation and amortization | $3,559 | | **EBITDA** | **$3,397** | | Stock-based compensation | $1,293 | | Non-cash lease expense | $720 | | Litigation | $— | | **Adjusted EBITDA** | **$5,410** | Reconciliation to Restaurant-level Operating Profit (Q3 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Operating loss | $(162) | | Add: Depreciation & amortization | $3,559 | | Add: Stock-based compensation | $1,293 | | Add: Pre-opening costs | $404 | | Add: Non-cash lease expense | $720 | | Add: General & administrative | $8,741 | | Less: Corp-level stock comp | $(1,063) | | **Restaurant-level operating profit** | **$13,492** |

Core Insights - Kura Sushi USA, Inc. reported financial results for the fiscal third quarter ended May 31, 2025, highlighting a total sales increase to $74.0 million from $63.1 million in the same quarter of 2024, despite a 2.1% decrease in comparable restaurant sales [5][10][11]. Financial Performance - Total sales reached $74.0 million, a 17.5% increase from $63.1 million in Q3 2024 [5][10]. - Comparable restaurant sales decreased by 2.1%, driven by a 2.9% decline in traffic and a 0.8% increase in price/mix [5][10]. - Net income was $0.6 million, or $0.05 per diluted share, compared to a net loss of $0.6 million, or $(0.05) per diluted share, in Q3 2024 [9][10]. - Adjusted net income was $0.6 million, or $0.05 per diluted share, compared to an adjusted net income of $4,000, or $0.00 per diluted share, in Q3 2024 [11][31]. - Restaurant-level operating profit was $13.5 million, representing 18.2% of sales, down from $12.6 million, or 20.0% of sales, in Q3 2024 [11][30]. - Adjusted EBITDA was $5.4 million, an increase from $4.5 million in Q3 2024 [11][33]. Cost Structure - Food and beverage costs as a percentage of sales decreased to 28.3% from 29.2% in Q3 2024, attributed to menu price increases and supply chain initiatives [6]. - Labor and related costs increased to 33.1% of sales from 32.6% in Q3 2024, primarily due to rising wage rates [6]. - Occupancy and related expenses rose to $5.5 million from $4.3 million in Q3 2024, mainly due to the opening of thirteen new restaurants [7]. - General and administrative expenses were $8.7 million, slightly down from $8.9 million in Q3 2024, with a decrease in percentage of sales to 11.8% from 14.0% [8]. Restaurant Development - The company opened three new restaurants during the fiscal third quarter of 2025, located in Scottsdale, Arizona; Lynnwood, Washington; and McKinney, Texas [12]. - Following the quarter, two additional restaurants were opened in The Woodlands, Texas, and Salt Lake City, Utah [12]. Fiscal Year 2025 Outlook - For the full fiscal year of 2025, the company anticipates total sales of approximately $281 million and plans to open 15 new restaurants, maintaining an annual unit growth rate above 20% [18].

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Group 1: Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1] Group 2: Market Focus - The investment strategy encompasses markets in the US, Canada, and Europe, indicating a broad geographical focus for potential investment opportunities [1]

Group 1 - Kura Sushi USA, Inc. is set to release its third-quarter earnings results on July 8, with analysts expecting a quarterly loss of 1 cent per share and projected revenue of $71.82 million, up from $63.08 million a year earlier [1] - In the previous quarter, Kura Sushi reported a loss of 14 cents per share, which was worse than the analyst consensus estimate of a loss of 13 cents per share, and quarterly sales of $64.89 million, slightly missing the consensus estimate of $64.91 million [2] - Kura Sushi shares experienced a gain of 5.3%, closing at $86.08 on the day prior to the earnings announcement [2] Group 2 - Barclays analyst Jeffrey Bernstein maintained an Equal-Weight rating and raised the price target from $52 to $71 [5] - Citigroup analyst Jon Tower maintained a Neutral rating and reduced the price target from $71 to $47 [5] - TD Securities analyst Andrew Charles maintained a Hold rating and cut the price target from $72 to $44 [5] - Craig-Hallum analyst Jeremy Hamblin maintained a Buy rating and increased the price target from $85 to $120 [5] - Piper Sandler analyst Brian Mullan maintained a Neutral rating and raised the price target from $63 to $98 [5]

Company Overview - Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept with 77 locations across 20 states and Washington DC [3] - The company offers a distinctive dining experience based on authentic Japanese cuisine and a revolving sushi service model [3] - Established in 2008 as a subsidiary of Kura Sushi, Inc., which has over 650 restaurants internationally and 45 years of brand history [3] Upcoming Financial Results - Kura Sushi will host a conference call to discuss fiscal third quarter 2025 financial results on July 8, 2025, at 5:00 p.m. ET [1] - A press release with the financial results will be issued on the same day after market close [1] - The conference call will be hosted by key executives including Hajime "Jimmy" Uba, Jeff Uttz, and Benjamin Porten [1]

Summary of Kura Sushi Conference Call Company Overview - Kura Sushi is a subsidiary of Kura Japan, established in the U.S. in 2009, and went public in February 2022. [3][4] - The company has expanded from 4 states to 20 states plus Washington D.C., with over 70 restaurants. [4] - Kura Sushi has maintained a unit growth rate of over 20% annually for the last five years, positioning itself as a significant player in a fragmented sushi industry. [4][5] Core Business Insights - The sushi industry is highly fragmented, with Kura Sushi and Nobu controlling only about 2% of the market revenue. [5] - Kura Sushi leverages technology to enhance operational efficiency, including the implementation of a reservation system and the introduction of the Ishrobot for automation. [5][6] Value Proposition - Kura Sushi focuses on providing high-quality ingredients at competitive prices, with a price gap of approximately 50% compared to competitors. [10][11] - Recent limited-time offers (LTOs) have included high-quality items at lower prices, showcasing the brand's unique value proposition. [9][10] IP Collaborations and Comp Trends - The company has increased its IP collaborations to 7-8 for the next fiscal year, aiming to reduce volatility in comparable sales. [12][13] - The first month of IP campaigns tends to outperform the second month, which is a strategy to enhance sales consistency. [13] Reservation System Rollout - Over 60 units have implemented the reservation system, which is expected to significantly improve customer experience by reducing wait times. [15][16] - The reservation system aims to eliminate the two-step decision-making process for customers, enhancing overall satisfaction. [17][18] Tariff Impact and Cost Management - Approximately 60% of Kura Sushi's supplies are sourced overseas, primarily from Asia and Japan. [20] - The company has experienced a minimal impact of 20 basis points on cost of goods sold (COGS) due to tariffs, thanks to strong supplier relationships. [22][26] - Kura Sushi has successfully reduced its COGS from 30% to the low 29% range over the past three years. [23] Labor Costs and Inflation - The company has faced unexpected high single-digit labor inflation but anticipates a return to low to mid-single digits. [30][31] - Labor-related initiatives are expected to yield significant benefits during high sales periods, improving operational efficiency. [32][33] Expansion Strategy - Kura Sushi aims for a 20% unit growth rate, focusing on quality site selection and management. [44] - The company has a strong pipeline for new locations, with a goal to achieve a 50-50 split between new and existing markets by fiscal 2027. [42][43] Financial Position - Kura Sushi has $100 million on its balance sheet and does not anticipate needing additional capital raises to sustain its growth. [45][46] Customer Feedback and Improvements - The primary customer complaints have been related to wait times and the accuracy of wait times, which the reservation system aims to address. [48][51] - Adjustments have been made to the prize system for families to enhance customer experience and increase plate consumption. [52] Conclusion - Kura Sushi is positioned for continued growth through strategic expansion, technological advancements, and a focus on customer satisfaction, while effectively managing costs and navigating market challenges. [54]

Company Overview - Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept with 76 locations across 20 states and Washington DC [1] - The company offers a distinctive dining experience based on authentic Japanese cuisine and a revolving sushi service model [1] - Established in 2008 as a subsidiary of Kura Sushi, Inc., which has over 650 restaurants internationally and 45 years of brand history [1] Upcoming Events - On June 3, 2025, the company will host a fireside chat at William Blair's 45th Annual Growth Stock Conference in Chicago, IL, starting at 12:00 p.m. CT [2] - On June 4, 2025, the company will host a fireside chat at TD Cowen's 9th Annual Future of the Consumer Conference in New York, NY, starting at 2:45 p.m. ET [2] - Both discussions will be webcast live on the company's corporate website under the investor relations section [2]

Core Insights - The Japan Go IPO Summit will take place on June 5, 2025, in Tokyo, co-hosted by Nasdaq and MarcumAsia, featuring a lineup of prominent speakers discussing cross-border listings and IPO strategies [1][4]. Group 1: Keynote and Speakers - Keitaro Ishii, Director of Kura Sushi USA, will deliver a keynote address on achieving long-term success as a U.S. public company, highlighting Kura Sushi's transition from Japan to the U.S. market [2][5]. - Coincheck Group's executives will share insights on their successful U.S. listing via a SPAC merger, discussing lessons learned and strategies for building investor confidence post-listing [3][5]. - Junsei Ryu, CEO of TOYO Co. Ltd. and Abalance Corporation, will provide perspectives on managing public companies listed on both Nasdaq and the Tokyo Stock Exchange [3]. Group 2: Summit Focus Areas - The summit will cover essential topics such as IPO readiness, cross-border strategies, and capital raising in U.S. public markets, featuring discussions from industry leaders who have facilitated Japanese companies' public offerings [4][5]. - Specific sessions will address the state of the U.S. IPO market, elements of IPO success, and the advantages and lessons learned from SPACs [6]. Group 3: Registration and Attendance - Registration for the invitation-only event is now open, with attendance being free but limited in capacity [6].

Group 1 - Kura Sushi (KRUS) has been experiencing a decline in stock price, influenced by market sentiment and recent news related to 'Liberation Day' [1] - The company operates in the restaurant sector, focusing on various dining segments including QSR, fast casual, casual dining, fine dining, and family dining [1] - The founder of Goulart's Restaurant Stocks emphasizes the use of advanced analytical models and specialized valuation techniques to provide insights and strategies for investors [1] Group 2 - The article does not provide any specific financial data or performance metrics related to Kura Sushi or the restaurant industry [2][3]

Kura Sushi USA, Inc. (KRUS) reported second-quarter fiscal 2025 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line increased year over year, while the bottom line fell from the prior-year quarter’s figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Management pointed out meaningful progress across key initiatives, including tapping into new market opportunities following a successful launch in Bakersfield, advancing its intellectual property p ...