Kura Sushi USA 2026 Q1 Earnings Deepened Losses Despite 14% Revenue Growth

Kura Sushi USA (KRUS) reported fiscal 2026 Q1 results on Jan. 7, 2026, showing a 14% revenue increase to $73.45 million but a 218.4% wider net loss year-over-year. The company reiterated its $330–334 million sales guidance for 2026 while acknowledging ongoing operational challenges.

Revenue

Total revenue rose 14% to $73.45 million in Q1 2026, outpacing the $64.46 million recorded in the prior-year period. This growth was driven by the opening of four new locations and a 14.0% year-over-year sales increase.

Earnings/Net Income

The company’s losses widened significantly, with a net loss of $3.06 million ($0.25 per share), a 218.4% increase from $961,000 ($0.08 per share) in Q1 2025. The EPS decline reflects persistent operational pressures, with the EPS performance notably worse than expected.

Post-Earnings Price Action Review

The strategy of buying KRUS when revenues miss and holding for 30 days delivered moderate performance, achieving a 65.35% return, slightly higher than the benchmark’s 57.22%. The Sharpe ratio of 0.19 indicates reasonable risk-adjusted returns, though the maximum drawdown of 0.00% suggests no significant losses during the backtest period.

CEO Commentary

CEO Hajime Uba highlighted progress toward 2026 guidance, emphasizing sequential sales improvement and a 10-unit construction pipeline. Strategic priorities include reducing G&A expenses by 80 basis points and labor costs by 100 basis points. Uba expressed cautious optimism about labor efficiency and pricing effectiveness despite COGS pressures from tariffs.

Guidance

Kura Sushi reiterated full-year 2026 guidance: $330–334 million in sales, 16 new restaurant openings, and 12–12.5% G&A expenses as a percentage of sales. Restaurant-level operating profit margins are expected to reach ~18%, with positive comp sales anticipated in Q2 due to easier comparisons and pricing benefits.

Additional News

1. Collaboration Expansion: The company emphasized leveraging its reservation system and partnerships, such as with Kirby, to drive traffic and offset challenges like COGS pressures from tariffs.

2. New Unit Openings: Four new locations opened in Q1 2026, with 10 units under construction and a 20%+ unit growth target for 2026.

3. Analyst Activity: Institutional investors, including Ameriprise Financial and Woodline Partners, adjusted holdings, with some increasing stakes in KRUS despite mixed analyst ratings.