Kura Sushi USA Reports 17.3% Revenue Growth and New Restaurant Openings

Kura Sushi USA, Inc. reported a notable increase in financial performance for the three and nine months ended May 31, 2025, with sales reaching $73.965 million for the quarter, up 17.3% from $63.082 million in the same period last year. For the nine-month period, sales totaled $203.315 million, an 18.3% increase from $171.848 million. The company achieved a net income of $565,000 for the quarter, a significant turnaround from a net loss of $558,000 in the prior year. However, for the nine months, Kura Sushi recorded a net loss of $4.177 million, compared to a loss of $3.603 million in the same period last year.

The company's operational metrics reflected substantial changes, particularly in restaurant openings. Kura Sushi expanded its footprint by opening 13 new restaurants, bringing its total to 76 locations across 20 states and Washington, D.C. This expansion contributed to increased sales, although comparable restaurant sales saw a decline of 2.1% for the quarter, driven by a 2.9% drop in traffic. The company anticipates opening a total of 15 new restaurants by the end of fiscal year 2025, which is expected to further boost revenue.

Kura Sushi's operating costs also rose, with total restaurant operating costs increasing to $65.277 million for the quarter, up 18.1% from $55.287 million a year earlier. This rise was attributed to higher food and beverage costs, labor expenses, and occupancy costs, which were influenced by the new restaurant openings. Food and beverage costs increased by 13.8% to $20.928 million, while labor costs surged by 19.2% to $24.478 million. Despite these increases, the company managed to reduce its general and administrative expenses slightly to $8.741 million, down from $8.857 million.

In terms of liquidity, Kura Sushi reported cash and cash equivalents of $47.132 million as of May 31, 2025, down from $50.986 million at the end of the previous fiscal year. The company generated $15.338 million in net cash from operating activities during the nine months, slightly up from $14.943 million in the prior year. However, net cash used in investing activities surged to $84.183 million, primarily due to significant investments in property and equipment and purchases of investments. The company also completed a follow-on public offering in November 2024, raising approximately $64.4 million in net proceeds, which it plans to use for general corporate purposes.

Looking ahead, Kura Sushi remains optimistic about its growth trajectory, expecting continued revenue increases driven by new restaurant openings and menu price adjustments. The company is also monitoring the impact of market conditions, including potential changes in import laws and tariffs, which could affect food and beverage costs. Overall, Kura Sushi aims to leverage its expansion strategy to enhance its market presence and improve financial performance in the upcoming quarters.