KURA SUSHI U recently released its latest 10-Q report. Kura Sushi USA, Inc. operates technology-enabled Japanese restaurants in the United States and describes its concept as the “Kura Experience,” a revolving sushi service model built around freshly prepared Japanese cuisine. The company, founded in 2008 and headquartered in Irvine, California, is a subsidiary of Kura Sushi, Inc.
In Item 2, Management’s Discussion and Analysis, Kura Sushi said it expanded to 84 restaurants in 22 states and Washington, DC during the six months ended February 28, 2026 after opening five locations, then added four more locations after the period ended for a total of 88 restaurants. The company said it expects to open 16 new restaurants in fiscal 2026, which it expects will lift revenue and restaurant operating costs, while general and administrative expenses should also rise on a dollar basis to support growth.
Tariffs remained a major operating factor. Kura Sushi said tariffs had a “considerable impact” on business, financial condition, results of operations and cash flows during the six-month period, and it expects that impact to continue in fiscal 2026, particularly in food and beverage costs, construction and equipment costs, and other restaurant operating costs. The company also said commodity inflation has offset some tariff relief, leading it to expect food and beverage costs as a percentage of sales to remain reasonably consistent with the first half of fiscal 2026.
For the three months ended February 28, 2026, sales rose 23.3% to $80.0 million from $64.9 million a year earlier. Kura Sushi attributed the increase mainly to sales from 11 restaurants opened after February 28, 2025 and to menu price increases; comparable restaurant sales rose 8.6%, with traffic up 4.3% and price/mix up 4.3%.
Restaurant operating costs increased 21.8% to $71.1 million from $58.4 million. Food and beverage costs climbed 30.5% to $24.3 million and increased to 30.4% of sales from 28.7%, which the company linked mainly to tariffs on imported ingredients, partly offset by higher menu prices. Labor and related costs rose 8.8% to $24.6 million, but fell to 30.7% of sales from 34.8% because of operational initiatives including the reservation system and scheduling, higher menu prices and improved sales leverage, partly offset by low-single-digit wage inflation.
Occupancy and related expenses increased 27.8% to $6.5 million, while depreciation and amortization within restaurant operating costs rose 26.0% to $4.1 million. Other costs increased 32.0% to $11.6 million. Total operating expenses were $82.2 million, up 18.4% from $69.5 million, and the quarterly operating loss narrowed to $2.2 million from $4.6 million. Net loss improved to $1.7 million from $3.8 million.
For the six months ended February 28, 2026, sales increased 18.6% to $153.5 million from $129.4 million. Food and beverage costs rose 24.0% to $46.3 million, labor and related costs increased 10.6% to $48.5 million, occupancy and related expenses climbed 25.4% to $12.4 million, and other costs increased 29.1% to $23.4 million. Total restaurant operating costs were $138.6 million, up 20.0%, while total operating expenses increased 17.7% to $159.4 million. The six-month operating loss narrowed to $5.9 million from $6.1 million, and net loss was $4.8 million compared with $4.7 million a year earlier. Today the company's shares have moved 0.14% to a price of $67.00. If you want to know more, read the company's complete 10-Q report here.
