Kura Sushi USA (KRUS) 28th Annual ICR Conference 2026 summary

Growth strategy and scale advantages

• Operating 83 units across 22 states and D.C., leveraging scale for competitive advantage and automation with a conveyor belt system.

• Targeting expansion to over 300 units in the U.S., growing at a 20% annual rate.

• Brand is recognized for portability and strong performance across diverse markets, not just coastal regions.

• Scale enables unique guest experiences, including a broad menu and accessibility for sushi newcomers.

• Increasing invitations to high-quality new developments, with landlords offering more tenant improvement allowances, keeping net build costs stable at $2.5 million per unit.

Financial performance and margin outlook

• Recent quarters saw high-quality growth driven by both increased traffic and higher ticket sizes, aided by successful limited-time offers and IP campaigns.

• Effective price increase of 4.5% as of November 1, with improved price mix and traffic, attributed to value perception amid industry-wide price fatigue.

• Tariffs have been managed through supplier negotiations, resulting in a 150-200 basis-point impact to COGS, with COGS expected at 30% for the year.

• Restaurant-level margin guidance is 18% for fiscal 2026, with a path to approach 20% in fiscal 2027 through pricing, robotics, insurance improvements, and reduced cannibalization.

• Shelf registration for $100 million filed to provide capital flexibility, with strong liquidity and no current need to tap credit lines.

Operational improvements and technology

• Robotic dishwashers being installed in the back half of fiscal 2026, expected to improve margins by 50 basis points and reduce labor needs.

• Access to proprietary technology from the majority shareholder in Japan, including future upgrades like robotic arms for dishwashing.

• Data analytics and AI-driven site selection have improved new unit performance, with the 2025 and 2026 classes outperforming prior years by at least 10%.

• Reservation system enhancements and decoupling from rewards program have increased convenience and engagement.