Kura Sushi USA: Overcoming Challenges with Strategic Growth and Pricing Adjustments

William Blair analyst Sharon Zackfia has reiterated their bullish stance on KRUS stock, giving a Buy rating on April 2.

Sharon Zackfia’s rating is based on several factors that highlight the potential for Kura Sushi USA’s growth despite recent challenges. The company experienced a decline in same-store sales during the fiscal second quarter, primarily due to adverse weather conditions, wildfires, and the absence of a successful promotional collaboration from the previous year. However, total revenue still increased by 13%, indicating strong performance from new store openings.
Despite the drop in traffic, which worsened due to tougher comparisons and external challenges, the average ticket size saw a 3.2% increase, driven by a rise in pricing. This suggests that while fewer customers visited, those who did were spending more. The regional performance showed a decline in the West and Southwest, but the overall resilience in revenue growth and strategic pricing adjustments underpin Zackfia’s confidence in the company’s future prospects, justifying the Buy rating.

In another report released on April 2, Craig-Hallum also reiterated a Buy rating on the stock with a $100.00 price target.