Kura Sushi USA, Inc. (KRUS)

Kura Sushi delivered a strong Q3 double beat, with 17% revenue growth and a surprise profit, validating my earlier bullish call near $50 support. The company is executing well on its debt-free, high-growth model, expanding units over 20% year-over-year and managing costs despite macro headwinds. Same-store sales are still negative but improving sequentially, and new initiatives plus a robust IP calendar should drive further gains into FY 2026.

Kura Sushi USA, Inc. KRUS reported better-than-expected third-quarter financial results and raised its FY25 sales guidance on Tuesday.

Kura Sushi USA, Inc. (NASDAQ:KRUS ) Q3 2025 Earnings Conference Call July 8, 2025 5:00 PM ET Company Participants Benjamin Porten - Corporate Participant SVP of Investor Relations & System Development - Corporate Participant Hajime Uba - Chairman, President & CEO Jeffrey J. Uttz - CFO & Treasurer Conference Call Participants George Arthur Kelly - ROTH Capital Partners, LLC, Research Division James Jon Sanderson - Northcoast Research Partners, LLC Jeffrey Andrew Bernstein - Barclays Bank PLC, Research Division Zachary Ogden - TD Cowen, Research Division Jeremy Scott Hamblin - Craig-Hallum Capital Group LLC, Research Division Jon Michael Tower - Citigroup Inc., Research Division Mark Eric Smith - Lake Street Capital Markets, LLC, Research Division Matthew James Curtis - William Blair & Company L.L.C.

Kura Sushi (KRUS) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of a loss of $0.02 per share. This compares to break-even earnings per share a year ago.

Kura Sushi USA, Inc. has continued to expand rapidly. The company eyes 14 new openings in FY2025. Performance indicators suggest underlying weakness. Kura Sushi's comparable restaurant sales have declined beyond peers', and profitability remains thin. The current stock valuation makes the investment's risk-to-reward unattractive. I estimate a significant 53% downside to $41.9 in a base scenario.

Kura Sushi USA, Inc. KRUS will release earnings results for the third quarter, before the opening bell on Tuesday, July 8.

Tariffs and waning consumer confidence are significantly impacting Kura Sushi, leading to a downgrade to a sell rating due to supply chain uncertainties and declining same-store sales. Kura Sushi's Q2 results show a concerning trend, with a 5.3% y/y decline in comparable sales and an 8.5% drop in customer traffic. Despite maintaining its full-year sales target, Kura Sushi's ability to achieve 14% y/y growth in 2H appears unrealistic given current trends.

Kura Sushi's stock surged nearly 30% due to a tariff pause and a smoother-than-expected transition quarter, reaffirming its growth story. Despite higher construction costs from tariffs, Kura's expansion remains strong with 14 new locations planned for FY 2025. Same-store sales declined, but new openings and weather impacts suggest the dip isn't as severe as it appears.

Kura Sushi's rollout of a new reservation system and progress in penetrating new markets position it well for future growth. Yet, elevated costs are a concern.

KRUS' fiscal second-quarter top line reflects dismal comps performance, courtesy of a fall in traffic. Also, weather-related challenges created sales pressure.

U.S. stock futures were lower this morning, with the Dow futures falling more than 600 points on Wednesday.

Kura Sushi USA, Inc. (NASDAQ:KRUS ) Q2 2025 Earnings Conference Call April 8, 2025 5:00 PM ET Company Participants Benjamin Porten - Senior Vice President, Investor Relations and System Development Hajime Uba - President and Chief Executive Officer Jeff Uttz - Chief Financial Officer Conference Call Participants Andrew Charles - TD Cowen Jeffrey Bernstein - Barclays Jeremy Hamblin - Craig-Hallum Capital Group Matt Curtis - William Blair Mark Smith - Lake Street Capital John-Paul Wollam - ROTH Capital Partners Todd Brooks - Benchmark Company Jim Sanderson - Northcoast Research Operator Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Kura Sushi Fiscal Second Quarter 2025 Earnings Conference Call.

Kura Sushi (KRUS) came out with a quarterly loss of $0.14 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.09 per share a year ago.

IRVINE, Calif., April 08, 2025 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”) (NASDAQ: KRUS), a technology-enabled Japanese restaurant concept, today announced financial results for the fiscal second quarter ended February 28, 2025.

Kura Sushi USA, Inc KRUS will release its second-quarter financial results after the closing bell on Tuesday, April 8.

KRUS' fiscal Q2 performance is likely to have gained from unit expansion efforts, operational improvements and technological enhancements.