Kura Sushi USA's Q2 sales, profit beat estimates

Overview

• U.S. sushi restaurant operator's fiscal Q2 sales rose 23% yr/yr, beating analyst expectations

• Adjusted EPS and adjusted net income for Q2 beat consensus, losses narrowed yr/yr

• Adjusted EBITDA for Q2 beat analyst expectations, driven by improved labor leverage and sales

Outlook

• Kura Sushi USA sees fiscal 2026 sales between $333 mln and $335 mln

• Company expects to open 16 new restaurants in fiscal 2026, maintaining unit growth above 20%

• Kura Sushi USA forecasts restaurant-level operating profit margin of 18.0% to 18.5% for fiscal 2026

Result Drivers

• COMPARABLE SALES GROWTH - Comparable restaurant sales rose 8.6%, driven equally by higher customer traffic and increased average check (price/mix)

• LABOR LEVERAGE - Labor and related costs as a percentage of sales declined, mainly due to operational efficiencies, pricing, and better sales leverage, partially offset by wage inflation

• TARIFFS AND MENU PRICING - Food and beverage costs as a percentage of sales increased, mainly due to tariffs on imported ingredients, partially offset by menu price increases

Company press release: ID:nGNX8fkF71

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for Kura Sushi USA Inc is $72.50, about 0.1% below its April 6 closing price of $72.60

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