Kura Sushi USA 2025 Q3 Earnings Strong Performance as Net Income Swings 201.3%

Kura Sushi USA (KRUS) reported its fiscal 2025 Q3 earnings on July 8th, 2025. The total revenue increased by 17.3% to $73.97 million in 2025 Q3, up from $63.08 million in 2024 Q3. The company returned to profitability with an EPS of $0.05, reversing from a loss of $0.05 per share in 2024 Q3. Kura Sushi USA expects total sales to be approximately $281 million for fiscal year 2025, with the anticipation of opening 15 new units.

Revenue
The total revenue for Kura Sushi USA in 2025 Q3 rose significantly by 17.3% to reach $73.97 million, compared to $63.08 million in the same period of the previous year. This growth includes sales revenue and total revenue, both of which amounted to $73.97 million, showcasing a successful period for the company.

Earnings/Net Income
Kura Sushi USA demonstrated a notable financial turnaround in 2025 Q3, achieving an EPS of $0.05 compared to a loss of $0.05 per share in the previous year’s quarter. The company’s net income reached $565,000, marking a 201.3% positive change from the net loss of $558,000 in 2024 Q3. This positive swing in earnings indicates a favorable EPS performance.

Price Action
The stock price of Kura Sushi USA saw a slight increase of 0.10% during the latest trading day, a climb of 0.81% over the past week, and a notable rise of 12.56% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Kura Sushi USA shares after a revenue beat and selling them 30 days later yielded a disappointing -14.68% return, underperforming the benchmark return of 27.90% for the same period. This strategy resulted in a compound annual growth rate (CAGR) of -4.30%, with a maximum drawdown of -61.72%. The Sharpe ratio stood at -0.10, reflecting the strategy’s high risk and underperformance. Investors who adopted this approach faced a challenging investment environment, as the strategy did not capitalize on the company's positive earnings report effectively.

CEO Commentary
Hajime Uba, Chairman, President & CEO of Kura Sushi USA, expressed his satisfaction with the company's performance across various fronts, including the reservation system, market opportunities, and marketing calendar. Uba highlighted total sales of $74 million, despite a comparable sales growth of negative 2.1%, driven by sequential improvements each month. He noted the successful opening of new restaurants and the potential of smaller DMAs to enhance growth, expressing optimism about future performance and ongoing efforts to leverage intellectual property collaborations and operational efficiencies.

Guidance
Kura Sushi USA anticipates total sales to be approximately $281 million for fiscal year 2025, with plans to open 15 new units. The company maintains an annual unit growth rate above 20%, and projects average net capital expenditures per unit at roughly $2.5 million. General and administrative expenses as a percentage of sales are expected to be below 13%, excluding any legal settlements.

Additional News
Recently, Kura Sushi USA has been active in expanding its restaurant footprint. The company opened three new locations during the fiscal third quarter of 2025 in Scottsdale, Arizona; Lynnwood, Washington; and McKinney, Texas. Additionally, subsequent to May 31, 2025, Kura Sushi launched two more restaurants in The Woodlands, Texas and Salt Lake City, Utah. These strategic openings are part of the company's ongoing efforts to tap into high-growth markets and expand its presence across the U.S. The company continues to focus on leveraging technology and innovative marketing strategies to enhance customer experience and drive growth.