Kura Sushi USA (KRUS) AI Stock Analysis

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Kura Sushi USA

(NASDAQ:KRUS)

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Neutral 58 (OpenAI - 4o)

Rating:58Neutral

Price Target:

$79.00

▲(7.61% Upside)

Kura Sushi USA's overall stock score is primarily influenced by its strong revenue growth and improved profitability metrics. However, the negative net income, increased debt levels, and bearish technical indicators weigh heavily on the score. The positive sentiment from the earnings call provides some optimism, but valuation concerns remain due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing market penetration and customer acceptance, providing a solid foundation for future expansion and profitability.

Cash Position

A robust cash position with no debt enhances financial flexibility, allowing for strategic investments and cushioning against economic downturns.

Market Expansion

Strategic expansion into new markets supports long-term growth potential and increases brand presence, driving future revenue opportunities.

Negative Factors

Negative Net Income

Ongoing net income losses can hinder reinvestment into the business and may affect investor confidence, necessitating a focus on achieving profitability.

Increased Labor Costs

Rising labor costs can compress margins and reduce profitability, posing challenges to maintaining cost efficiency and operational effectiveness.

Operating Profit Margin Decline

A declining operating profit margin indicates pressure on profitability, necessitating improved cost management to sustain financial health.

Kura Sushi USA (KRUS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$887.82M

Dividend YieldN/A

Average Volume (3M)224.03K

Price to Earnings (P/E)―

Beta (1Y)1.59

Revenue Growth18.76%

EPS Growth-1259.53%

CountryUS

Employees3,300

SectorConsumer Cyclical

Sector Strength84

IndustryRestaurants

Share Statistics

EPS (TTM)0.05

Shares Outstanding11,093,889

10 Day Avg. Volume212,072

30 Day Avg. Volume224,032

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.04

Enterprise Value/Revenue3.41

Enterprise Value/Gross Profit8.02

Enterprise Value/Ebitda232.58

Forecast

1Y Price Target

$90.71

Price Target Upside23.57% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering9

Kura Sushi USA Business Overview & Revenue Model

Company DescriptionKura Sushi USA, Inc. operates technology-enabled Japanese restaurants in the United States. The company's restaurants provide Japanese cuisine through an engaging revolving sushi service model, which is known as 'Kura Experience'. As of August 31, 2021, it operated 33 restaurants in nine states and Washington DC. The company was formerly known as Kula Sushi USA, Inc. and changed its name to Kura Sushi USA, Inc. in October 2017. The company was founded in 2008 and is headquartered in Irvine, California. Kura Sushi USA, Inc. is a subsidiary of Kura Sushi, Inc.

How the Company Makes MoneyKura Sushi generates revenue primarily through the sale of food and beverages at its restaurants. The company's revenue model is built on providing a unique dining experience that encourages repeat visits. Key revenue streams include sales from sushi and other Japanese dishes, beverages, and dessert items. Additionally, Kura Sushi may benefit from partnerships with suppliers that provide high-quality ingredients, which can enhance its menu offerings and customer satisfaction. The company also focuses on effective cost management and operational efficiency to maximize profit margins. Seasonal promotions and loyalty programs may further contribute to customer retention and increased sales.

Kura Sushi USA Key Performance Indicators (KPIs)

Any

Comparable Restaurant Sales Growth

Comparable Restaurant Sales Growth
Measures the sales performance of restaurants open for a year or more, indicating how well existing locations are doing without the influence of new openings. This metric reveals customer loyalty, brand strength, and operational efficiency, providing insight into the company's ability to drive growth through its current footprint.

Chart InsightsKura Sushi USA is experiencing a downturn in comparable restaurant sales growth, with recent quarters showing negative trends. Despite opening new locations and improving food and beverage costs, challenges persist due to declining traffic and rising labor costs. The company is optimistic about future growth, driven by a new reservation system and planned IP collaborations. However, ongoing tariff concerns and labor cost pressures could continue to impact margins and sales performance.

Data provided by:

Main Street Data

Kura Sushi USA Earnings Call Summary

Earnings Call Date:Jul 08, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted several positive developments, including the successful implementation of a new reservation system, improved food and beverage costs, and strong EBITDA growth. However, these were offset by challenges such as negative comparable sales growth and increased labor costs. The company's cash position remains robust, and sales guidance has been raised, indicating optimism about future performance.

Q3-2025 Updates

Positive Updates

Successful Rollout of New Reservation System

Completed the system-wide rollout of the reservation system ahead of schedule, which has been received positively by guests and team members.

Improved Food and Beverage Costs

Food and beverage costs as a percentage of sales improved by 90 basis points to 28.3% compared to the prior year, driven by pricing and supply chain efforts.

New Restaurant Openings and Market Expansion

Opened three new restaurants in North Scottsdale, Arizona, Lynnwood, Washington, and McKinney, Texas, with subsequent openings in Woodlands, Texas, and Salt Lake City, Utah. Lynnwood quickly became one of the top five restaurants.

Strong Adjusted EBITDA Growth

Adjusted EBITDA increased by 20% to $5.4 million compared to $4.5 million in the prior year quarter, despite higher restaurant operating costs.

Robust Cash Position

The company ended the fiscal third quarter with $93 million in cash, cash equivalents, and investments, and no debt.

Increase in Annual Sales Guidance

The company raised its full fiscal year 2025 sales guidance to approximately $281 million.

Negative Updates

Negative Comparable Sales Growth

Total sales for the fiscal third quarter were $74 million, with comparable sales growth of negative 2.1%, driven by negative traffic of 2.9%.

Increased Labor Costs

Labor as a percentage of sales increased by 50 basis points due to high single-digit wage inflation.

Operating Profit Margin Decline

Operating profit margin decreased to 18.2% from 20% in the prior year, due to higher labor, occupancy, and other costs.

Mixed IP Collaboration Results

Some IP collaborations have not translated into bigger sales, highlighting the importance of selecting the right partners.

Company Guidance

During the fiscal third quarter of 2025, Kura Sushi USA, Inc. reported total sales of $74 million, with a comparable sales decline of 2.1%, driven by a traffic decrease of 2.9% but partially offset by a positive price and mix impact of 0.8%. The company showcased operational improvements, with food and beverage costs as a percentage of sales improving by 90 basis points to 28.3% from the prior year's 29.2%. Despite facing high single-digit wage inflation, labor costs as a percentage of sales rose by only 50 basis points. The operating profit margin declined to 18.2% from 20% in the previous year due to increased labor and occupancy costs. The company opened three new restaurants in the quarter and two more subsequent to the quarter-end. Looking ahead, Kura Sushi expects to achieve total sales of $281 million in fiscal 2025, with a plan to open 15 new units. They anticipate general and administrative expenses to remain below 13% of sales, excluding any legal settlements, while maintaining an annual unit growth rate above 20%.

Kura Sushi USA Financial Statement Overview

Summary

Kura Sushi USA shows strong revenue growth and improved gross profitability. However, challenges persist with negative net income and increasing debt levels, indicating a need for sustainable profitability and effective leverage management.

Income Statement

Positive

Kura Sushi USA has shown significant revenue growth over the years, with a notable increase from $141 million in 2022 to $269 million in TTM (Trailing-Twelve-Months). Despite the revenue growth, profitability remains a challenge with negative net income and EBIT margins. The gross profit margin has improved, indicating better cost management, but the net profit margin remains negative, reflecting ongoing challenges in achieving profitability.

Balance Sheet

Positive

The balance sheet indicates a moderate debt-to-equity ratio, which suggests manageable leverage. The equity ratio has remained stable, showing a solid asset base. However, the company has experienced an increase in total debt over the years, which could pose risks if profitability does not improve. The return on equity is negative, reflecting the net income losses.

Cash Flow

Neutral

Cash flow analysis reveals an improving operating cash flow, which is a positive indicator of the company's ability to generate cash from operations. However, the free cash flow remains volatile, and the ratio of operating cash flow to net income is skewed due to negative net income. The company needs to focus on increasing free cash flow to ensure financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	269.33M	237.86M	187.43M	141.09M	64.89M	45.17M
Gross Profit	114.60M	29.52M	28.78M	21.89M	6.11M	-4.25M
EBITDA	3.95M	3.20M	9.64M	5.01M	-5.84M	-13.07M
Net Income	-9.38M	-8.80M	1.50M	-764.00K	-10.29M	-17.36M
Balance Sheet
Total Assets	419.37M	328.52M	304.66M	201.36M	177.67M	118.38M
Cash, Cash Equivalents and Short-Term Investments	60.50M	50.99M	78.24M	35.78M	40.43M	9.26M
Total Debt	166.04M	141.35M	119.56M	90.81M	72.96M	64.51M
Total Liabilities	192.37M	165.98M	140.02M	108.06M	86.83M	72.67M
Stockholders Equity	227.00M	162.54M	164.64M	93.29M	90.84M	45.71M
Cash Flow
Free Cash Flow	8.25M	-28.91M	-22.75M	-3.97M	-21.38K	-27.46M
Operating Cash Flow	16.01M	15.61M	18.06M	23.69M	-7.15K	-13.00M
Investing Cash Flow	-93.39M	-36.46M	-49.90M	-28.17M	-14.67K	-14.78M
Financing Cash Flow	65.12M	2.14M	65.75M	-170.00K	52.98K	-1.00M

Kura Sushi USA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price73.41

Price Trends

50DMA

81.35

Negative

100DMA

77.05

Negative

200DMA

75.00

Negative

Market Momentum

MACD

-1.35

Positive

RSI

36.35

Neutral

STOCH

14.07

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRUS, the sentiment is Negative. The current price of 73.41 is below the 20-day moving average (MA) of 80.39, below the 50-day MA of 81.35, and below the 200-day MA of 75.00, indicating a bearish trend. The MACD of -1.35 indicates Positive momentum. The RSI at 36.35 is Neutral, neither overbought nor oversold. The STOCH value of 14.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRUS.

Kura Sushi USA Risk Analysis

Kura Sushi USA disclosed 54 risk factors in its most recent earnings report. Kura Sushi USA reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Kura Sushi USA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BJRI	67 Neutral	658.19M	25.02	7.12%	―	4.07%	-1.24%
PTLO	67 Neutral	477.71M	13.88	7.36%	―	3.62%	17.67%
FWRG	63 Neutral	972.72M	243.73	3.18%	―	14.53%	-83.26%
BH	63 Neutral	964.77M	24.53	6.70%	―	4.14%	0.00%
KRUS	58 Neutral	$887.82M	―	-4.77%	―	18.76%	-1259.53%
BLMN	47 Neutral	581.02M	-83.09	-1.25%	10.10%	-11.45%	-121.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

KRUS

Kura Sushi USA

73.41

-10.79

-12.81%

Biglari Holdings

312.36

140.19

81.43%

BJRI

BJ's Restaurants

29.75

-2.17

-6.80%

BLMN

Bloomin' Brands

6.83

-8.74

-56.13%

FWRG

First Watch Restaurant Group

15.94

0.52

3.37%

PTLO

Portillo's

6.34

-6.93

-52.22%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 17, 2025