Kura Sushi (KRUS) Q4 2025 Earnings Beat, Revenue Rises 20.3% Year-on-Year

On November 6, 2025, Kura Sushi USA Inc (KRUS) delivered financial results that exceeded expectations for its fiscal fourth quarter ended August 31, 2025. The company reported revenue of $79.4 million, surpassing the estimated $78.36 million and reflecting a 20.3% year-on-year increase. Earnings per share (EPS) came in at $0.18 per diluted share, surpassing the forecast of $0.12 and showcasing an impressive turnaround from a net loss in the same period in 2024.

The performance was driven by strong revenue growth and improved operational efficiencies, with the company posting a net income of $2.3 million compared to a net loss of $5.2 million in the previous year. Operating income reached $1.5 million, a stark improvement from an operating loss of $5.8 million a year earlier. The adjusted EBITDA increased to $7.4 million, up from $5.5 million in the same quarter of 2024, reflecting effective cost management and a focus on operational improvements.

Kura Sushi also announced three new restaurant openings during the quarter, expanding its total number of locations to 79 by the end of the fiscal fourth quarter. The company’s strategic expansion continued through fiscal 2025, with the addition of 15 new restaurants across the United States.

The company’s general and administrative expenses saw a significant reduction, dropping to $9.3 million in Q4 2025 from $13.4 million in the prior year. This was primarily due to reduced litigation expenses, a move that contributed to the company’s improved profitability. Hajime Uba, President and CEO of Kura Sushi, expressed pride in the team’s achievements, emphasizing the resilience of the business amid a volatile consumer environment.

The improved financial performance was accompanied by a more favorable cost structure. Food and beverage costs remained stable at 28.4% of sales, and labor costs slightly decreased to 31.1% of sales, driven by operational efficiencies and pricing strategies. These adjustments allowed Kura Sushi to maintain profitability despite external pressures such as inflation and rising labor costs.

Kura Sushi’s balance sheet remains robust, with $47.5 million in cash and cash equivalents as of August 31, 2025. Total assets amounted to $430.9 million, while liabilities stood at $199.9 million. The company’s stockholders’ equity totaled $231.1 million, providing a strong foundation for future growth initiatives.

The company also highlighted its fiscal 2026 outlook, with projected sales between $330 million and $334 million. Kura Sushi plans to open 16 new restaurants in fiscal 2026, maintaining an annual unit growth rate above 20%. The company aims to achieve restaurant-level operating profit margins of approximately 18% and keep general and administrative expenses as a percentage of sales between 12.0% and 12.5%.

Despite the positive results, the company faces challenges in driving traffic and price/mix improvements, as comparable restaurant sales only increased by 0.2% during the quarter. This indicates that there is room for further improvement in terms of customer engagement and menu pricing strategies.