Kura Sushi USA (NASDAQ:KRUS) Posts Earnings Results, Misses Expectations By $0.06 EPS

Kura Sushi USA (NASDAQ:KRUS) issued its quarterly earnings results on Wednesday. The company reported ($0.23) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.17) by ($0.06), Zacks reports. The company had revenue of $73.46 million during the quarter, compared to the consensus estimate of $72.98 million. Kura Sushi USA had a negative return on equity of 0.64% and a negative net margin of 1.37%.During the same quarter last year, the firm posted ($0.08) EPS.

Here are the key takeaways from Kura Sushi USA’s conference call:

• Company reiterated fiscal 2026 guidance of $330–$334M in sales, plans to open 16 new restaurants (keeping >20% unit growth) and targets ~18% restaurant‑level operating profit margin.
• Tariff-related headwinds pushed food & beverage costs toward ~30% of sales (management cites ~200 bps impact) and contributed to a Q1 operating loss of $3.7M and net loss of $3.1M.
• Management cites strong post‑Nov 1 pricing flow‑through (3.5% menu increase), with traffic and price/mix improving and confidence that Q2 comps will be positive and full‑year comps flat to slightly positive.
• Cost initiatives are showing progress—adjusted G&A declined ~80 bps and the company expects to improve labor by ~100 bps in FY26 while rolling out operational upgrades (reservations decoupling, touch panels, Mr. Fresh, robotic dishwashers).
• Balance sheet remains healthy with $78.5M in cash, cash equivalents and investments and no debt; a shelf registration is filed but no immediate capital raise is planned.

Kura Sushi USA Stock Up 16.7%

Shares of KRUS stock opened at $64.93 on Friday. The company has a market cap of $786.37 million, a P/E ratio of -196.76 and a beta of 1.68. The business has a 50 day moving average of $52.05 and a two-hundred day moving average of $67.44. Kura Sushi USA has a 52 week low of $40.03 and a 52 week high of $95.98.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Woodline Partners LP grew its stake in Kura Sushi USA by 270.3% during the 3rd quarter. Woodline Partners LP now owns 292,014 shares of the company’s stock worth $17,349,000 after buying an additional 213,158 shares during the last quarter. Two Sigma Investments LP boosted its holdings in shares of Kura Sushi USA by 102.6% during the third quarter. Two Sigma Investments LP now owns 223,767 shares of the company’s stock valued at $13,294,000 after acquiring an additional 113,311 shares during the period. Ameriprise Financial Inc. grew its position in shares of Kura Sushi USA by 17.5% during the second quarter. Ameriprise Financial Inc. now owns 345,958 shares of the company’s stock worth $29,780,000 after acquiring an additional 51,574 shares during the last quarter. Landscape Capital Management L.L.C. bought a new position in shares of Kura Sushi USA during the third quarter worth about $1,765,000. Finally, Balyasny Asset Management L.P. increased its holdings in shares of Kura Sushi USA by 13.0% in the 2nd quarter. Balyasny Asset Management L.P. now owns 213,105 shares of the company’s stock worth $18,344,000 after acquiring an additional 24,570 shares during the period. Institutional investors and hedge funds own 65.49% of the company’s stock.

Key Stories Impacting Kura Sushi USA

Here are the key news stories impacting Kura Sushi USA this week:

• Positive Sentiment: Company reiterated FY2026 guidance (total sales $330–$334M), announced a 16-unit expansion plan and set a target for ~18% restaurant‑level operating margin — management emphasized cost-management and pricing progress, which supports the growth narrative. Read More.
• Positive Sentiment: Top-line growth: total sales rose to $73.5M (vs $64.5M a year ago) and the company opened four new restaurants in the quarter, supporting the stated unit-growth strategy and future revenue runway. Read More.
• Neutral Sentiment: Management commentary from the earnings call highlighted progress on labor leverage and G&A as a percentage of sales and noted ten restaurants under construction — useful operational color but not an immediate earnings fix. Read More.
• Neutral Sentiment: Company reiterated its guidance despite a weak quarter, which can be read as management confidence but also forces investors to assume execution risk to hit targets. Read More.
• Negative Sentiment: Earnings miss and margin pressure: reported EPS of $(0.23) vs consensus $(0.17); net loss widened to $3.1M, adjusted EBITDA fell, and comparable-restaurant sales declined 2.5% — all negatives that explain investor concern about near-term profitability. Read More.
• Negative Sentiment: Analyst/coverage skepticism: independent commentary (e.g., Seeking Alpha) flags structural challenges and argues there are “no easy fix” issues — a narrative that can pressure the stock if investors focus on execution risk and margin sustainability. Read More.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Loop Capital set a $70.00 price objective on shares of Kura Sushi USA in a report on Thursday. TD Cowen reduced their price target on shares of Kura Sushi USA from $79.00 to $59.00 and set a “hold” rating on the stock in a research report on Friday, November 7th. Wall Street Zen raised Kura Sushi USA from a “sell” rating to a “hold” rating in a report on Saturday, December 6th. Sanford C. Bernstein set a $67.00 price objective on Kura Sushi USA in a research note on Wednesday, October 22nd. Finally, Lake Street Capital reiterated a “buy” rating and issued a $70.00 target price on shares of Kura Sushi USA in a research report on Thursday. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $77.11.

Kura Sushi USA Company Profile

Kura Sushi USA, Inc operates Japanese‐style revolving sushi restaurants across the United States. The company’s concept centers on delivering a modern sushi dining experience by combining fresh ingredients with automated conveyer belt and plate‐return systems. Guests can choose from a broad menu that includes nigiri, sashimi, maki rolls, tempura, udon noodles and chef‐inspired seasonal dishes, all served directly from the conveyor belt or ordered on tabletop touchscreens.

Each restaurant integrates patented technology to ensure food quality and operational efficiency.