Overview

• US Japanese restaurant chain's fiscal Q3 sales rose, but slightly missed analyst expectations

• Adjusted EBITDA for fiscal Q3 beat analyst expectations, aided by margin improvement

• Comparable restaurant sales fell 0.4% as traffic declined, partly offset by higher prices

Outlook

• Company sees full-year sales between $330.5 mln and $331.5 mln

• Kura Sushi expects to open 16 new restaurants in fiscal 2026

• Company forecasts restaurant-level operating profit margin of about 18.5% for the year

Result Drivers

• TARIFF IMPACT - Co said higher food and beverage costs were primarily due to tariffs on imported ingredients, partially offset by menu price increases

• OPERATIONAL EFFICIENCY - Co attributed lower labor costs as a percentage of sales to operational efficiencies and pricing, despite wage inflation

• NEW RESTAURANTS - Co said higher occupancy expenses were mainly due to opening fifteen new restaurants since Q3 2025

Company press release: ID:nGNXDjZSn

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Sales	Slight Miss*	$85.90 mln	$86.46 mln (11 Analysts)
Q3 EPS		$0.03
Q3 Net Income		$400,000
Q3 Adjusted EBITDA	Beat	$6.60 mln	$6.42 mln (11 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 29.2% above its July 6 closing price of $56.11

• The stock recently traded at 386 times the next 12-month earnings vs. a P/E of 1,312 three months ago

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