GICS Sector : Consumer Cyclical
Kura 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'.
Kura Sushi USA reported total sales of $79.4 million for the fiscal fourth quarter, representing a 20.3% increase from $66 million in the prior year period. Adjusted EBITDA was $7.4 million, up from $5.5 million in the prior year quarter. The company's earnings per share (EPS) came in at $0.2, beating analyst estimates of $0.17. The cost of goods sold as a percentage of sales was 28.4%, and labor as a percentage of sales improved by 30 basis points to 31.1%.
Publication Date: Nov -26
The company provided guidance for fiscal year 2026, expecting total sales between $330 million and $334 million, with 16 new units, maintaining an annual unit growth rate above 20%. The company expects general and administrative expenses as a percentage of sales to be between 12% and 12.5%. Full-year restaurant-level operating profit margins are expected to be approximately 18%. As Jeff Uttz stated, "We're expecting COGS for fiscal '26 to be around 30%, which we've never shared before."
The company delivered its strongest class of restaurant openings, adding 15 new locations, and successfully managed corporate G&A expenses, resulting in an annual adjusted EBITDA growth of over 30%. The company is working on improving products from menu development and sourcing perspectives, and is excited about Japan-sourced LTOs and IP campaigns. The reservation system is off to a strong start, supporting the quarter from being weaker.
Analysts estimate next year's revenue growth at 17.1%. Given the current valuation metrics, with a P/S Ratio of 2.02 and EV/EBITDA of 57.12, the market is pricing in a certain level of growth. However, with the company's guidance and operational highlights, it remains to be seen if Kura Sushi USA can meet these expectations. The company's focus on traffic and menu development to offer new great items that guests want to try and return to will be crucial in achieving its growth expectations.
The company took a 3.5% menu price increase in November and saw a 70 basis point impact in Q4. The negotiations with suppliers are ongoing, and the company is considering additional pricing to offset the costs. As Jeff Uttz mentioned, "We're controlling the rest of the P&L, despite the COGS expectation of 30% next year, which is 140 basis points higher than this year."
Kura Sushi USA, Inc. (KRUS) Q4 2025 Earnings Call Transcript
Nov -07
Kura Sushi (KRUS) Surpasses Q4 Earnings and Revenue Estimates
Nov -07
The Ultimate Growth Stock to Buy With $1,000 Right Now
Oct -02
Kura Sushi USA to Participate in Two Investor Conferences in September
Sep -02
Kura Sushi: We Ate Well In The $50s, Now It's Time To Digest (Rating Downgrade)
Jul -11
These Analysts Boost Their Forecasts On Kura Sushi USA Following Upbeat Q3 Results
Jul -09
Kura Sushi USA, Inc. (KRUS) Q3 2025 Earnings Call Transcript
Jul -09
Kura Sushi (KRUS) Q3 Earnings and Revenues Beat Estimates
Jul -08
Kura Sushi USA's 10.27% growth is driven by increasing popularity of technology-enabled dining experiences, rising demand for convenient and affordable Japanese cuisine, successful implementation of conveyor belt sushi concept, strategic expansion into new markets, and effective marketing strategies targeting health-conscious millennials and Gen Z consumers.
A variety of traditional and innovative sushi rolls, sashimi, and nigiri made with fresh, sustainable ingredients
Japanese-inspired hot dishes, including udon, ramen, and tempura, made with high-quality ingredients
A selection of Japanese beers, sake, and specialty drinks, including Ramune and Mugicha
Traditional Japanese-style desserts, such as mochi and manju, as well as unique fusion desserts
Customizable catering services for events and parties, featuring Kura Sushi's signature dishes
Kura Sushi USA, Inc. faces moderate threat from substitutes, as customers have alternative dining options such as other sushi restaurants and food delivery services.
Kura Sushi USA, Inc. has a high bargaining power of customers, as customers have many options and can easily switch to competitors, making it essential for the company to maintain high-quality products and services.
Kura Sushi USA, Inc. has a low bargaining power of suppliers, as the company has multiple suppliers for its ingredients and materials, reducing the dependence on a single supplier.
Kura Sushi USA, Inc. faces a moderate threat of new entrants, as entering the sushi restaurant market requires significant investment and expertise, but new entrants can still pose a threat to the company's market share.
Kura Sushi USA, Inc. operates in a highly competitive market, with many established players, making it essential for the company to differentiate itself through its unique revolving sushi bar concept and high-quality products.
| Value | |
|---|---|
| Debt Weight | 42.07% |
| Debt Cost | 3.95% |
| Equity Weight | 57.93% |
| Equity Cost | 13.88% |
| WACC | 9.70% |
| Leverage | 72.62% |
Value: 2.4
Growth: 6.0
Quality: 3.5
Yield: 0.0
Momentum: 9.5
Volatility: 3.0
1-Year Total Return ->
Value: 8.2
Growth: 1.4
Quality: 3.6
Yield: 0.0
Momentum: 7.5
Volatility: 1.0
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Value: 8.1
Growth: 5.0
Quality: 4.1
Yield: 0.0
Momentum: 1.0
Volatility: 3.3
1-Year Total Return ->
Value: 9.3
Growth: 6.4
Quality: 2.1
Yield: 0.0
Momentum: 2.0
Volatility: 1.3
1-Year Total Return ->
Value: 7.9
Growth: 5.2
Quality: 2.5
Yield: 0.0
Momentum: 1.0
Volatility: 3.0
1-Year Total Return ->
Value: 3.4
Growth: 6.0
Quality: 2.7
Yield: 0.0
Momentum: 1.5
Volatility: 2.3
1-Year Total Return ->