Kura Sushi USA (NASDAQ:KRUS) Issues Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Kura Sushi USA (NASDAQ:KRUS) issued its quarterly earnings data on Thursday. The company reported $0.08 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.10), FiscalAI reports. The business had revenue of $88.88 million during the quarter, compared to analysts’ expectations of $90.88 million. Kura Sushi USA had a negative return on equity of 0.86% and a negative net margin of 1.41%.

Here are the key takeaways from Kura Sushi USA’s conference call:

• Fiscal Q4 comparable sales fell 5.7%, as an 11.5% traffic decline more than offset 5.8% growth from price and mix. The company reported a $0.3 million net loss versus $2.3 million of net income a year earlier, while restaurant-level operating margin declined to 19.1% from 19.8%.
• Management traced much of the traffic weakness to weekday lunches and plans to expand testing of $9.99 and $11.99 value combos, with a broader launch targeted for Q2; an initial three-day test accounted for 5% of sales mix without lowering average check. Fiscal Q1 comps to date improved to negative 3.1%, though management said the improvement came from mix, while traffic remained roughly steady with Q4.
• For fiscal 2027, Kura expects sales of $376 million to $381 million, 17 restaurant openings, and restaurant-level operating margin of about 19%. Management said it will forgo further pricing after 3.5% pricing rolled off, and expects labor improvements to help offset slightly higher food costs.
• Kura plans to shift from percentage-based expansion to a steadily rising unit count—currently envisioning 17 openings in fiscal 2027, followed by roughly 18 and 19—and targets positive free cash flow and self-funding by 2031. Management said the approach is intended to avoid another capital raise, while maintaining that recent restaurant unit economics remain strong.
• Tariffs increased costs by 180 basis points in fiscal 2026, but 190 basis points of labor leverage and 90 basis points of G&A leverage helped protect margins; adjusted EBITDA dollars and margin grew year over year. The company ended the quarter with $65.6 million in cash and investments and no debt.

Kura Sushi USA Trading Down 26.1%

Shares of NASDAQ:KRUS traded down $9.69 during midday trading on Friday, hitting $27.38. The stock had a trading volume of 1,020,507 shares, compared to its average volume of 225,510. The company has a market capitalization of $332.67 million, a PE ratio of -72.05 and a beta of 1.38. Kura Sushi USA has a 1 year low of $26.32 and a 1 year high of $80.84. The stock has a 50 day moving average price of $38.38 and a two-hundred day moving average price of $52.60.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. William Blair downgraded Kura Sushi USA from an “outperform” rating to a “market perform” rating in a research report on Friday. TD Cowen reduced their price target on shares of Kura Sushi USA from $51.00 to $38.00 and set a “hold” rating on the stock in a research report on Friday. Wall Street Zen cut shares of Kura Sushi USA from a “hold” rating to a “sell” rating in a report on Saturday, October 24th. Zacks Research raised shares of Kura Sushi USA from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, September 23rd. Finally, Citigroup reduced their target price on shares of Kura Sushi USA from $59.00 to $36.00 and set a “neutral” rating on the stock in a report on Monday, October 26th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $60.78.

Kura Sushi USA Company Profile

Kura Sushi USA, Inc operates technology-enabled Japanese restaurants in the United States under the Kura Revolving Sushi Bar brand. Its restaurants feature a conveyor-belt dining format in which customers select dishes as they pass by, along with touchscreen ordering and automated systems designed to support restaurant operations.

The company’s menu includes a variety of sushi and other Japanese dishes, including nigiri, rolls, sashimi, appetizers, desserts and beverages. Kura Sushi USA also incorporates interactive elements into the dining experience, such as its Bikkura-Pon reward system, which offers customers games and prizes based on returned plates.

Founded in 2008, Kura Sushi USA is headquartered in Irvine, California, and is affiliated with Kura Sushi, Inc, a Japanese restaurant company.