Kura Sushi USA-Buy 5 U.S. Restaurant Stocks With Solid Short-Term Price Upside Left

Industry Overview - The U.S. restaurant industry faced challenges in 2024 due to high wages, food cost inflation, and traffic issues, but showed recovery in early 2025 following a significant interest rate cut by the Fed in the second half of 2024 [1] - The Zacks-defined Retail – Restaurant Industry is currently in the top 23% of the Zacks Industry Rank, indicating an expectation for the restaurant industry to outperform the market in the next three to six months, with a year-to-date increase of 7.8% compared to the S&P 500's 4.1% rise [2] Near-Term Catalysts - The Fed's 1% reduction in the benchmark lending rate in 2024 is expected to lower borrowing costs, benefiting both restaurant owners and consumers, which typically boosts consumer spending [4] - Sales at U.S. restaurants continue to rise despite inflation, with a 0.9% month-over-month and 5.4% year-over-year increase reported in January [5] - Restaurant operators are focusing on digital innovation, sales-building initiatives, and cost-saving efforts, partnering with delivery channels and digital platforms to drive incremental sales [6][7] Company Recommendations - Five U.S. restaurant stocks are recommended for their favorable Zacks Rank and strong near-term price upside potential: Texas Roadhouse Inc. (TXRH), Shake Shack Inc. (SHAK), Kura Sushi USA Inc. (KRUS), Sweetgreen Inc. (SG), and Potbelly Corp. (PBPB) [3][9] Company-Specific Insights Texas Roadhouse Inc. (TXRH) - Expected revenue and earnings growth rates for TXRH are 9.9% and 13.4%, respectively, for the current year, with a 0.6% improvement in earnings estimates over the last 30 days [12] - The short-term average price target indicates a potential increase of 16.6% from the last closing price of $171.70, with a maximum upside of 51.4% [13] Shake Shack Inc. (SHAK) - SHAK has expected revenue and earnings growth rates of 16.8% and 39.1%, respectively, for the current year, with a 1.6% improvement in earnings estimates in the last week [16] - The short-term average price target suggests a 23.3% increase from the last closing price of$ 108.40, with a maximum upside of 47.6% [17] Kura Sushi USA Inc. (KRUS) - KRUS is projected to have revenue and earnings growth rates of 18.3% and over 100%, respectively, for the current year, with earnings estimates improving by over 100% in the last 60 days [21] - The short-term average price target indicates a 37.5% increase from the last closing price of $77.44, with a maximum upside of 55% [22] Sweetgreen Inc. (SG) - SG is expected to achieve revenue and earnings growth rates of 18.3% and over 100%, respectively, for the current year, with earnings estimates improving by over 100% in the last 60 days [24] - The short-term average price target suggests a 52.1% increase from the last closing price of$ 27.19, with a maximum upside of 80.2% [25] Potbelly Corp. (PBPB) - PBPB has expected revenue and earnings growth rates of 4.3% and 12.5%, respectively, for the current year, with an 8% improvement in earnings estimates over the last 60 days [27] - The short-term average price target indicates a 20.7% increase from the last closing price of $12.39, with a maximum upside of 29.1% [28]