Kura Sushi USA Announces Fiscal First Quarter 2026 Financial Results
Rhea-AI Summary
Kura Sushi (NASDAQ: KRUS) reported fiscal Q1 2026 results for the period ended Nov 30, 2025. Total sales were $73.5M vs $64.5M year‑ago. Comparable restaurant sales decreased 2.5%. Operating loss widened to $3.7M and net loss was $3.1M (loss of $0.25 per diluted share); adjusted net loss was $2.8M. Restaurant‑level operating profit was $11.1M (15.1% of sales). Adjusted EBITDA was $2.4M. The company opened four restaurants in Q1 and reiterates FY26 guidance of $330–334M sales and 16 new restaurants.
Positive
- Total sales +14% to $73.5M vs prior-year quarter
- 4 new restaurants opened in Q1 (Arcadia, Modesto, Freehold, Lawrenceville)
- FY26 guidance: $330–334M total sales and 16 new restaurants
- G&A guidance of 12.0%–12.5% of sales indicating planned cost discipline
Negative
- Operating loss widened to $3.7M from $1.5M a year earlier
- Net loss increased to $3.1M (−$0.25 per diluted share) vs −$1.0M prior
- Restaurant-level operating margin down 310 bps to 15.1% from 18.2%
- Adjusted EBITDA declined to $2.4M from $3.6M in prior-year quarter
News Market Reaction – KRUS
On the day this news was published, KRUS gained 16.70%, reflecting a significant positive market reaction. Argus tracked a peak move of +24.5% during that session. Our momentum scanner triggered 28 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $114M to the company's valuation, bringing the market cap to $799M at that time. Trading volume was above average at 2.0x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
KRUS was up 3.12% pre-release while peers were mixed: SG up 7.98%, CBRL up 8.17%, BH up 5.65%, FWRG down 1.06%, HDL down 6.89%, suggesting a stock-specific setup rather than a uniform restaurant-sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 17 | Earnings date notice | Neutral | +0.7% | Announcement of Q1 2026 earnings release date and conference call details. |
| Nov 06 | Q4 & FY25 earnings | Positive | -7.0% | Q4 and FY2025 sales growth, return to Q4 profitability, FY2026 guidance issued. |
| Oct 16 | Earnings date notice | Neutral | -0.7% | Scheduled Q4 and FY2025 results release and accompanying conference call. |
| Sep 02 | Investor conferences | Neutral | -0.5% | Participation in September investor conferences and a webcast fireside chat. |
| Jul 08 | Q3 2025 earnings | Positive | -11.9% | Q3 2025 sales growth, swing to net income, updated FY2025 guidance and openings. |
Earnings releases have often led to sharp moves, with some positive fundamental updates followed by negative price reactions.
Over the last few quarters, Kura Sushi reported steady sales growth and active unit expansion, alongside periods of net losses and margin pressure. Fiscal Q3 and Q4 2025 earnings showed higher sales and, at times, positive net income, yet shares moved -11.87% and -6.97% afterward, indicating sensitivity to expectations. Earlier in 2025, Q2 results with weaker comps coincided with a 31.62% gain, highlighting volatile reactions. Against that backdrop, the latest Q1 2026 update continues the theme of growth with pressured profitability.
Market Pulse Summary
The stock surged +16.7% in the session following this news. A strong positive reaction aligns with Kura Sushi’s history of sizeable post-earnings moves, where the average change has been 15.57%. The Q1 2026 report shows continued sales growth to $73.5 million but also wider losses and softer margins. Past instances saw shares fall after seemingly solid updates, underscoring expectations risk. Investors have also focused on comparable sales trends and restaurant-level profitability, which could influence how durable any strength proves after the initial response.
Key Terms
comparable restaurant sales financial
operating loss financial
non-gaap financial
adjusted ebitda financial
general and administrative expenses financial
AI-generated analysis. Not financial advice.
Company to host fireside chat and investor meetings at the 28th Annual ICR Conference
IRVINE, Calif., Jan. 07, 2026 (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 first quarter ended November 30, 2025.
Fiscal First Quarter 2026 Highlights
- Total sales were
$73.5 million , compared to$64.5 million in the first quarter of 2025; - Comparable restaurant sales decreased
2.5% for the first quarter of 2026 as compared to the first quarter of 2025; - Operating loss was
$3.7 million , compared to an operating loss of$1.5 million in the first quarter of 2025; - Net loss was
$3.1 million , or$(0.25) per diluted share, compared to net loss of$1.0 million , or$(0.08) per diluted share, in the first quarter of 2025; - Adjusted net loss* was
$2.8 million , or$(0.23) per diluted share, compared to an adjusted net loss* of$1.0 million or$(0.08) per diluted share, in the first quarter of 2025; - Restaurant-level operating profit* was
$11.1 million , or15.1% of sales; - Adjusted EBITDA* was
$2.4 million ; and - Four new restaurants opened during the fiscal first quarter of 2026.
*Adjusted net loss, Restaurant-level operating profit and Adjusted EBITDA are non-GAAP measures and are defined below under “Key Financial Definitions.” Please see the reconciliation of non-GAAP measures accompanying this release. See also “Non-GAAP Financial Measures” below.
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.”
Review of Fiscal First Quarter 2026 Financial Results
Total sales were
Food and beverage costs as a percentage of sales were
Labor and related costs as a percentage of sales were
Occupancy and related expenses were
Other costs as a percentage of sales were
General and administrative expenses were
Operating loss was
Income tax expense was
Net loss was
Adjusted net loss* was
Restaurant-level operating profit* was
Adjusted EBITDA* was
Restaurant Development
During the fiscal first quarter of 2026, the Company opened four new restaurants in Arcadia, California; Modesto, California; Freehold; New Jersey and Lawrenceville, New Jersey.
Fiscal Year 2026 Outlook
For the full fiscal year of 2026, the Company reiterates the following annual guidance:
- Total sales between
$330 million and$334 million ; - 16 new restaurants, maintaining an annual unit growth rate above
20% , with average net capital expenditures per unit of approximately$2.5 million ; - General and administrative expenses as a percentage of sales between
12.0% and12.5% ; and - Restaurant-level operating profit margins of approximately
18% .
Conference Call
A conference call and webcast to discuss Kura Sushi’s financial results is scheduled for 5:00 p.m. EDT today. Hosting the conference call and webcast will be Hajime “Jimmy” Uba, President and Chief Executive Officer, Jeff Uttz, Chief Financial Officer, and Benjamin Porten, SVP Investor Relations & System Development.
Interested parties may listen to the conference call via telephone by dialing 201-689-8471. A telephone replay will be available shortly after the call has concluded and can be accessed by dialing 412-317-6671; the passcode is 13757545. The webcast will be available at www.kurasushi.com under the investor relations section and will be archived on the site shortly after the call has concluded.
ICR Conference Participation
The Company will host a fireside chat at the 28th Annual ICR Conference on Tuesday, January 13, 2026 in Orlando, FL. Kura Sushi’s discussion will begin at 10:00 a.m. ET and will be webcast live on our corporate website at www.kurasushi.com under the investor relations section.
About Kura Sushi USA, Inc.
Kura Sushi USA, Inc. is a leading technology-enabled Japanese restaurant concept with 83 locations across 22 states and Washington DC. The Company offers guests a distinctive dining experience built on authentic Japanese cuisine and an engaging revolving sushi service model. Kura Sushi USA, Inc. was established in 2008 as a subsidiary of Kura Sushi, Inc., a Japan-based revolving sushi chain with more than 650 restaurants internationally and 45 years of brand history. For more information, please visit www.kurasushi.com.
Key Financial Definitions
Adjusted Net Income (Loss), a non-GAAP measure, is defined as net income (loss) before certain items, such as litigation expenses, that the Company believes are not indicative of its core operating results. Adjusted net income (loss) per diluted share represents adjusted net income (loss) divided by the number of diluted shares.
EBITDA, a non-GAAP measure, is defined as net income (loss) before interest, income taxes and depreciation and amortization expenses.
Adjusted EBITDA, a non-GAAP measure, is defined as EBITDA plus stock-based compensation expense, non-cash lease expense and asset disposals, closure costs and restaurant impairments, as well as certain items, such as litigation expenses that the Company believes are not indicative of its core operating results. Adjusted EBITDA margin is defined as adjusted EBITDA divided by sales.
Restaurant-level Operating Profit (Loss), a non-GAAP measure, is defined as operating income (loss) plus depreciation and amortization expenses; stock-based compensation expense; pre-opening costs and general and administrative expenses which are considered normal, recurring, cash operating expenses and are essential to supporting the development and operations of restaurants; non-cash lease expense; and asset disposals, closure costs and restaurant impairments; less corporate-level stock-based compensation expense recognized within general and administrative expenses. Restaurant-level operating profit (loss) margin is defined as restaurant-level operating profit (loss) divided by sales.
Comparable Restaurant Sales Performance refers to the percent change in year-over-year sales for the comparable restaurant base. The Company includes restaurants in the comparable restaurant base that have been in operation for at least 18 full calendar months by the end of the accounting period presented due to new restaurants experiencing a period of higher sales upon opening. For restaurants that were temporarily closed the comparative period was also adjusted accordingly.
Non-GAAP Financial Measures
To supplement the financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain financial measures, such as adjusted net income (loss), EBITDA, adjusted EBITDA, adjusted EBITDA margin, restaurant-level operating profit (loss) and restaurant-level operating profit (loss) margin (“non-GAAP measures”) that are not recognized under GAAP. These non-GAAP measures are intended as supplemental measures of its performance that are neither required by, nor presented in accordance with, GAAP. The Company is presenting these non-GAAP measures because the Company believes that they provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and operating results. These measures also may not provide a complete understanding of the operating results of the Company as a whole and such measures should be reviewed in conjunction with its GAAP financial results. Additionally, the Company presents restaurant-level operating profit (loss) because it excludes the impact of general and administrative expenses which are not incurred at the restaurant-level. The Company also uses restaurant-level operating profit (loss) to measure operating performance and returns from opening new restaurants.
The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware that restaurant-level operating profit (loss) and restaurant-level operating profit (loss) margin are financial measures which are not indicative of overall results for the Company, and restaurant-level operating profit (loss) and restaurant-level operating profit (loss) margin do not accrue directly to the benefit of stockholders because of corporate-level and certain other expenses excluded from such measures. In addition, you should be aware when evaluating these non-GAAP financial measures that in the future the Company may incur expenses similar to those excluded when calculating these measures. The Company’s presentation of these measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. The Company’s computation of these non-GAAP financial measures may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate these non-GAAP financial measures in the same fashion. Because of these limitations, these non-GAAP financial measures should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. The Company compensates for these limitations by relying primarily on its GAAP results and using these non-GAAP financial measures on a supplemental basis.
Forward-Looking Statements
Except for historical information contained herein, the statements in this press release or otherwise made by the Company’s management in connection with the subject matter of this press release are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and involve risks and uncertainties and are subject to change based on various important factors. This press release includes forward-looking statements that are based on management’s current estimates or expectations of future events or future results. These statements are not historical in nature and can generally be identified by such words as “target,” “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “continue,” “predict,” “potential,” “plan,” “anticipate” or the negative of these terms, and similar expressions. Management’s expectations and assumptions regarding future results are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements included in this press release. These risks and uncertainties include but are not limited to: the Company’s ability to successfully maintain increases in our comparable restaurant sales; the Company’s ability to successfully execute our growth strategy and open new restaurants that are profitable; the Company’s ability to expand in existing and new markets; the Company’s projected growth in the number of its restaurants; macroeconomic conditions and other economic factors; the Company’s ability to compete with many other restaurants; the Company’s reliance on vendors, suppliers and distributors, including its majority stockholder Kura Sushi, Inc.; changes in food and supply costs, including the impact of inflation and tariffs; concerns regarding food safety and foodborne illness; changes in consumer preferences and the level of acceptance of the Company’s restaurant concept in new markets; minimum wage increases and mandated employee benefits that could cause a significant increase in labor costs, as well as the impact of labor availability; the failure of the Company’s automated equipment or information technology systems or the breach of its network security; the loss of key members of the Company’s management team; the impact of governmental laws and regulations; volatility in the price of the Company’s common stock; and other risks and uncertainties as described in the Company’s filings with the Securities and Exchange Commission (“SEC”). These and other factors that could cause results to differ materially from those described in the forward-looking statements contained in this press release can be found in the Company’s other filings with the SEC. Undue reliance should not be placed on forward-looking statements, which are only current as of the date they are made. The Company assumes no obligation to update or revise its forward-looking statements, except as may be required by applicable law.
Investor Relations Contact:
Jeff Priester or Steven Boediarto
(657) 333-4010
investor@kurausa.com
| Kura Sushi USA, Inc. Statements of Operations and Comprehensive Loss (in thousands, except for per share data; unaudited) | ||||||||
| Three Months Ended November 30, | ||||||||
| 2025 | 2024 | |||||||
| Sales | $ | 73,455 | $ | 64,456 | ||||
| Restaurant operating costs: | ||||||||
| Food and beverage costs | 21,934 | 18,667 | ||||||
| Labor and related costs | 23,898 | 21,235 | ||||||
| Occupancy and related expenses | 5,838 | 4,754 | ||||||
| Depreciation and amortization expenses | 3,980 | 3,091 | ||||||
| Other costs | 11,805 | 9,341 | ||||||
| Total restaurant operating costs | 67,455 | 57,088 | ||||||
| General and administrative expenses | 9,551 | 8,733 | ||||||
| Depreciation and amortization expenses | 129 | 109 | ||||||
| Total operating expenses | 77,135 | 65,930 | ||||||
| Operating loss | (3,680 | ) | (1,474 | ) | ||||
| Other expense (income): | ||||||||
| Interest expense | 18 | 13 | ||||||
| Interest income | (674 | ) | (565 | ) | ||||
| Loss before income taxes | (3,024 | ) | (922 | ) | ||||
| Income tax expense | 36 | 39 | ||||||
| Net loss | $ | (3,060 | ) | $ | (961 | ) | ||
| Net loss income per Class A and Class B shares | ||||||||
| Basic | $ | (0.25 | ) | $ | (0.08 | ) | ||
| Diluted | $ | (0.25 | ) | $ | (0.08 | ) | ||
| Weighted average Class A and Class B shares outstanding | ||||||||
| Basic | 12,111 | 11,416 | ||||||
| Diluted | 12,111 | 11,416 | ||||||
| Other comprehensive loss: | ||||||||
| Unrealized gain on short-term investments | $ | 40 | — | |||||
| Comprehensive loss | $ | (3,020 | ) | $ | (961 | ) | ||
| Kura Sushi USA, Inc. Selected Balance Sheet Data and Selected Operating Data (in thousands, except restaurants and percentages; unaudited) | ||||||||
| November 30, 2025 | August 31, 2025 | |||||||
| Selected Balance Sheet Data: | ||||||||
| Cash and cash equivalents | $ | 35,365 | $ | 47,498 | ||||
| Total assets | $ | 443,511 | $ | 430,942 | ||||
| Total liabilities | $ | 214,310 | $ | 199,872 | ||||
| Total stockholders’ equity | $ | 229,201 | $ | 231,070 | ||||
| Three Months Ended November 30, | ||||||||
| 2025 | 2024 | |||||||
| Selected Operating Data: | ||||||||
| Restaurants at the end of period | 83 | 70 | ||||||
| Comparable restaurant sales performance | (2.5 | )% | 1.8 | % | ||||
| EBITDA | $ | 429 | $ | 1,726 | ||||
| Adjusted EBITDA | $ | 2,435 | $ | 3,572 | ||||
| Adjusted EBITDA margin | 3.3 | % | 5.5 | % | ||||
| Operating loss | $ | (3,680 | ) | $ | (1,474 | ) | ||
| Operating loss margin | (5.0 | )% | (2.3 | )% | ||||
| Restaurant-level operating profit | $ | 11,088 | $ | 11,714 | ||||
| Restaurant-level operating profit margin | 15.1 | % | 18.2 | % | ||||
| Kura Sushi USA, Inc. Reconciliation of Net Loss and Net Loss Per Diluted Share to Adjusted Net Loss and Adjusted Net Loss Per Diluted Share (in thousands, except for per share data; unaudited) | ||||||||
| Three Months Ended November 30, | ||||||||
| 2025 | 2024 | |||||||
| Net loss | $ | (3,060 | ) | $ | (961 | ) | ||
| Litigation(3) | 243 | — | ||||||
| Adjusted net loss | $ | (2,817 | ) | $ | (961 | ) | ||
| Net loss per Class A and Class B diluted shares | $ | (0.25 | ) | $ | (0.08 | ) | ||
| Litigation(3) | 0.02 | — | ||||||
| Adjusted net loss per Class A and Class B diluted shares | $ | (0.23 | ) | $ | (0.08 | ) | ||
| Weighted average Class A and Class B shares outstanding | ||||||||
| Diluted shares | 12,111 | 11,416 | ||||||
| Adjusted diluted shares | 12,111 | 11,416 | ||||||
| Kura Sushi USA, Inc. Reconciliation of Net Loss to EBITDA and Adjusted EBITDA (in thousands; unaudited) | ||||||||
| Three Months Ended November 30, | ||||||||
| 2025 | 2024 | |||||||
| Net loss | $ | (3,060 | ) | $ | (961 | ) | ||
| Interest income, net | (656 | ) | (552 | ) | ||||
| Income tax expense | 36 | 39 | ||||||
| Depreciation and amortization expenses | 4,109 | 3,200 | ||||||
| EBITDA | 429 | 1,726 | ||||||
| Stock-based compensation expense(1) | 1,099 | 1,126 | ||||||
| Non-cash lease expense(2) | 664 | 720 | ||||||
| Litigation(3) | 243 | — | ||||||
| Adjusted EBITDA | $ | 2,435 | $ | 3,572 | ||||
| Adjusted EBITDA margin | 3.3 | % | 5.5 | % | ||||
| Kura Sushi USA, Inc. Reconciliation of Operating Loss to Restaurant-level Operating Profit (in thousands; unaudited) | ||||||||
| Three Months Ended November 30, | ||||||||
| 2025 | 2024 | |||||||
| Operating loss | $ | (3,680 | ) | $ | (1,474 | ) | ||
| Depreciation and amortization expenses | 4,109 | 3,200 | ||||||
| Stock-based compensation expense(1) | 1,099 | 1,126 | ||||||
| Pre-opening costs(4) | 263 | 356 | ||||||
| Non-cash lease expense(2) | 664 | 720 | ||||||
| General and administrative expenses | 9,551 | 8,733 | ||||||
| Corporate-level stock-based compensation in general and administrative expenses | (918 | ) | (947 | ) | ||||
| Restaurant-level operating profit | $ | 11,088 | $ | 11,714 | ||||
| Operating loss margin | (5.0 | )% | (2.3 | )% | ||||
| Restaurant-level operating profit margin | 15.1 | % | 18.2 | % | ||||
____________________
| (1) | Stock-based compensation expense includes non-cash stock-based compensation, which is comprised of restaurant-level stock-based compensation included in labor and related costs and corporate-level stock-based compensation included in general and administrative expenses in the statements of operations and comprehensive loss. | |
| (2) | Non-cash lease expense includes lease expense from the date of possession of our restaurants that did not require cash outlay in the respective periods. | |
| (3) | Litigation includes expenses related to legal claims or settlements. | |
| (4) | Pre-opening costs consist of labor costs and travel expenses for new employees and trainers during the training period, recruitment fees, legal fees, cash-based lease expenses incurred between the date of possession and opening day of our restaurants, and other related pre-opening costs. | |
FAQ
What were Kura Sushi (KRUS) total sales and comparable sales in Q1 2026?
How large was Kura Sushi's net loss and loss per share in Q1 2026 (KRUS)?
How did Kura Sushi's restaurant-level operating profit and margin perform in Q1 2026?
What FY2026 guidance did Kura Sushi reaffirm on Jan 7, 2026 (KRUS)?
How many restaurants did Kura Sushi open in fiscal Q1 2026 and where?
Where can investors access Kura Sushi's Q1 2026 earnings webcast and replay?
