Kura Sushi USA, Inc.
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsKura Sushi USA, Inc. operates a technology-enabled revolving sushi restaurant chain in the U.S., with 82 locations across 22 states and Washington, DC.
What they do
Kura Sushi USA operates Japanese revolving sushi restaurants offering freshly prepared cuisine free from artificial seasonings, sweeteners, colorings, and preservatives. The company had 82 restaurants as of the latest filing, including 7 opened in the fiscal third quarter of 2026. It is majority-owned by Kura Japan, which holds 67% of combined voting power.
Revenue drivers
- Restaurant sales – food and beverages — All revenue comes from in-restaurant food and beverage sales. For fiscal Q3 2026, total sales were $85.9 million, up from $74.0 million in the prior-year quarter.
- New restaurant openings — Revenue growth is driven by unit expansion. The company opened 15 restaurants in fiscal 2025 and expects 16 new openings in fiscal 2026; 7 opened in Q3 2026 alone.
- Comparable restaurant sales growth — Comparable sales were down 0.4% in Q3 2026, with negative traffic of 5.1% offset by price/mix of 4.7%. Historical tariff-related menu price increases partially offset cost pressures.
Recent performance
In fiscal Q3 2026 (ended May 31, 2026), total sales were $85.9 million, up from $74.0 million a year ago, while comparable sales decreased 0.4%. Net income was $0.4 million, or $0.03 per diluted share, versus $0.6 million, or $0.05 per share, in the prior-year quarter. Restaurant-level operating profit was $16.4 million, or 19.1% of sales, up from $13.5 million and 18.2% last year. Adjusted EBITDA was $6.6 million, up from $5.4 million. Operating loss improved to $39 thousand from a $162 thousand loss in Q3 2025.
Strategy
The company continues to expand its restaurant base, with 16 planned openings in fiscal 2026. Management focuses on sustainable margin improvement, targeting a return to historical 20% restaurant-level operating profit margins. It uses operational efficiencies, pricing, and menu price increases to offset tariff-driven cost inflation on imported ingredients. General and administrative expenses are expected to rise on a dollar basis to support growth.
Risks
- Tariff exposure — Tariffs on imported ingredients caused food and beverage costs to rise to 30.2% of sales in Q3 2026, up 190 basis points year over year, and management expects considerable impact on costs in fiscal 2026.
- Negative comparable traffic — Comparable restaurant sales declined 0.4% in Q3 2026, driven by a 5.1% drop in traffic, indicating potential demand softness despite price increases.
- Majority ownership by Kura Japan — Kura Japan holds 67% of combined voting power, allowing it to exert significant influence over fundamental corporate matters, which may differ from minority shareholders' interests.
- Execution risk in expansion — The company's growth relies on opening new restaurants; any delays or underperformance could hurt revenue and profitability, as evidenced by occupancy costs rising due to new openings.
Outlook
Management expects to open 16 new restaurants in fiscal 2026 and anticipates revenue and restaurant operating costs to increase accordingly. General and administrative expenses are expected to rise on a dollar basis to support growth. Tariffs are expected to have a considerable impact on food and beverage costs, construction and equipment costs, and other restaurant operating costs in fiscal 2026, but management expects menu price increases to partially offset these impacts. The company also reported three additional restaurant openings subsequent to May 31, 2026.