Kura Sushi USA Announces Election of Claudia Schaefer to the Company’s Board of Directors

Sushi restaurant chain Kura Sushi met Wall Streets revenue expectations in Q4 CY2025, with sales up 14% year on year to $73.46 million. The company’s full-year revenue guidance of $332 million at the midpoint came in 0.7% above analysts’ estimates. Its non-GAAP loss of $0.23 per share was 45.6% below analysts’ consensus estimates.

Kura Sushi (KRUS) Q4 CY2025 Highlights:

• Revenue: $73.46 million vs analyst estimates of $73.65 million (14% year-on-year growth, in line)
• Adjusted EPS: -$0.23 vs analyst expectations of -$0.16 (45.6% miss)
• Adjusted EBITDA: $2.44 million vs analyst estimates of $3.41 million (3.3% margin, relatively in line)
• The company reconfirmed its revenue guidance for the full year of $332 million at the midpoint
• Operating Margin: -5%, down from -2.3% in the same quarter last year
• Locations: 83 at quarter end, up from 70 in the same quarter last year
• Same-Store Sales fell 2.5% year on year (1.8% in the same quarter last year)
• Market Capitalization: $712.5 million

Hajime Uba, President and Chief Executive Officer of Kura Sushi, stated, “We’re making great progress towards the goals we laid out in our annual guidance. Regarding our goal of sixteen new restaurant openings, we have ten units under construction, on top of the four restaurants opened to date. Our commitment to aggressive cost management has leveraged G&A as a percentage of sales. We were also able to lever labor as a percentage of sales, renewing our confidence in our ability to improve labor costs in fiscal 2026. The first quarter has created a strong foundation for us to build on for the remainder of the fiscal year.”

Company Overview

Known for its conveyor belt that transports dishes to diners, Kura Sushi is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

With $291.8 million in revenue over the past 12 months, Kura Sushi is a small restaurant chain, which sometimes brings disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. On the bright side, it can grow faster because it has more white space to build new restaurants.

As you can see below, Kura Sushi’s 27.4% annualized revenue growth over the last six years was incredible as it opened new restaurants and expanded its reach.

This quarter, Kura Sushi’s year-on-year revenue growth was 14%, and its $73.46 million of revenue was in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 18% over the next 12 months, a deceleration versus the last six years. Despite the slowdown, this projection is admirable and implies the market is baking in success for its menu offerings.

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Restaurant Performance

Number of Restaurants

A restaurant chain’s total number of dining locations influences how much it can sell and how quickly revenue can grow.

Kura Sushi operated 83 locations in the latest quarter. It has opened new restaurants at a rapid clip over the last two years, averaging 26.5% annual growth, much faster than the broader restaurant sector. This gives it a chance to scale into a mid-sized business over time.

When a chain opens new restaurants, it usually means it’s investing for growth because there’s healthy demand for its meals and there are markets where its concepts have few or no locations.

Same-Store Sales

The change in a company's restaurant base only tells one side of the story. The other is the performance of its existing locations, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales gives us insight into this topic because it measures organic growth at restaurants open for at least a year.

Kura Sushi’s demand within its existing dining locations has barely increased over the last two years as its same-store sales were flat. Kura Sushi should consider improving its foot traffic and efficiency before expanding its restaurant base.

In the latest quarter, Kura Sushi’s same-store sales fell by 2.5% year on year. This decrease represents a further deceleration from its historical levels. We hope the business can get back on track.

Key Takeaways from Kura Sushi’s Q4 Results

We were impressed by how significantly Kura Sushi blew past analysts’ same-store sales expectations this quarter. We were also glad its full-year revenue guidance slightly exceeded Wall Street’s estimates. On the other hand, its EBITDA missed and its EPS fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 2% to $54.59 immediately after reporting.

Kura Sushi didn’t show it’s best hand this quarter, but does that create an opportunity to buy the stock right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after analysts at Bernstein highlighted a potential recovery for the sector in 2026. After a challenging 2025 marked by weakened consumer confidence, the firm anticipates a gradual traffic recovery. 

Several factors could stimulate consumer demand, including an upcoming Tax Bill and the U.S.-hosted Soccer World Cup, with effects potentially starting in the spring. This optimistic outlook was supported by restaurant valuations hitting 10-year lows, suggesting significant upside if consumer spending data improves. Following a period where households cut back on dining out due to inflation, larger tax rebate checks are also seen as a potential catalyst for a rebound in casual dining.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Traditional Fast Food company Jack in the Box jumped 8.2%. Is now the time to buy Jack in the Box? Access our full analysis report here, it’s free for active Edge members.
• Sit-Down Dining company Kura Sushi jumped 4.2%. Is now the time to buy Kura Sushi? Access our full analysis report here, it’s free for active Edge members.
• Traditional Fast Food company Starbucks jumped 4.3%. Is now the time to buy Starbucks? Access our full analysis report here, it’s free for active Edge members.
• Traditional Fast Food company Wendy's jumped 3.3%. Is now the time to buy Wendy's? Access our full analysis report here, it’s free for active Edge members.
• Sit-Down Dining company The Cheesecake Factory jumped 3.2%. Is now the time to buy The Cheesecake Factory? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Jack in the Box (JACK)

Jack in the Box’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 14 days ago when the stock dropped 3.3% on the news that it completed the sale of its Del Taco subsidiary for approximately $119 million, crystallizing a significant loss on the investment. The fast-food chain had acquired Del Taco in 2022 for about $585 million, meaning the sale resulted in a substantial financial hit. While the company stated the deal was part of a plan to reduce debt and shift to a business model with fewer physical assets, the transaction highlighted broader financial issues.

Jack in the Box is up 9.7% since the beginning of the year, but at $20.55 per share, it is still trading 51.7% below its 52-week high of $42.58 from February 2025. Investors who bought $1,000 worth of Jack in the Box’s shares 5 years ago would now be looking at an investment worth $212.66.

Sushi restaurant chain Kura Sushi will be reporting results this Wednesday afternoon. Here’s what to look for.

Kura Sushi beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $79.45 million, up 20.4% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations.

Is Kura Sushi a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Kura Sushi’s revenue to grow 14.3% year on year to $73.65 million, slowing from the 25.2% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kura Sushi has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Kura Sushi’s peers in the restaurants segment, only Darden has reported results so far. It beat analysts’ revenue estimates by 1%, delivering year-on-year sales growth of 7.3%. The stock price was unchanged following the results. Read our full analysis of Darden’s earnings results here.

There has been positive sentiment among investors in the restaurants segment, with share prices up 3.1% on average over the last month. Kura Sushi is up 6.4% during the same time and is heading into earnings with an average analyst price target of $75.44 (compared to the current share price of $58.03).

What Happened?

Shares of sushi restaurant chain Kura Sushi jumped 4.3% in the afternoon session after investor anticipation built ahead of its first-quarter earnings report, which was scheduled for release later in the month.

Analysts expected the Irvine, California-based company to report a wider quarterly loss of 16 cents per share, compared to a loss of 8 cents per share in the same period a year ago. Despite the projected decline in profitability, the forecast for revenue showed growth. The consensus estimate for Kura Sushi's quarterly revenue was $73.05 million, an increase from $64.46 million a year earlier. The market's positive reaction suggested that investors focused more on the company's expected sales growth than on its near-term earnings pressure.

After the initial pop the shares cooled down to $53.84, up 2.9% from previous close.

What Is The Market Telling Us

Kura Sushi’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 18 days ago when the stock gained 4.2% on the news that investors reacted to the company's ongoing expansion efforts, which included a new restaurant opening and plans for further growth. The revolving sushi chain opened a new 3,692-square-foot location in Freehold, New Jersey, marking its sixth restaurant in the state. This opening was part of a larger growth story, as the company had already opened 15 new locations in 2025. Looking ahead, Kura Sushi planned to build on its status as the country's largest revolving sushi chain by adding 16 more restaurants by 2026.

Investors who bought $1,000 worth of Kura Sushi’s shares 5 years ago would now be looking at an investment worth $2,989.

What Happened?

Shares of sushi restaurant chain Kura Sushi jumped 4.2% in the afternoon session after investors reacted to the company's ongoing expansion efforts, which included a new restaurant opening and plans for further growth. 

The revolving sushi chain opened a new 3,692-square-foot location in Freehold, New Jersey, marking its sixth restaurant in the state. This opening was part of a larger growth story, as the company had already opened 15 new locations in 2025. Looking ahead, Kura Sushi planned to build on its status as the country's largest revolving sushi chain by adding 16 more restaurants by 2026.

The shares closed the day at $52.08, up 0.9% from previous close.

Is now the time to buy Kura Sushi? Access our full analysis report here.

What Is The Market Telling Us

Kura Sushi’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 12 days ago when the stock gained 5.5% on the news that news that an activist investor took a stake in peer restaurant chain Noodles & Company sparked broader interest in the sector. 

Galloway Capital Partners acquired a 6% stake in Noodles & Company, a move that often suggests an investor sees potential for improvement or considers the company undervalued. This development occurred as many restaurant chains faced difficulties, including shifts in customer spending and tough economic conditions. The positive reaction in the sector indicated that investors might be looking for similar opportunities in other restaurant stocks, potentially viewing them as undervalued as well.

Kura Sushi is down 45.6% since the beginning of the year, and at $52.08 per share, it is trading 49.4% below its 52-week high of $103.01 from January 2025. Investors who bought $1,000 worth of Kura Sushi’s shares 5 years ago would now be looking at an investment worth $2,988.