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 automation and a conveyor belt system for efficiency and differentiation.

• Targeting expansion to over 300 units in the U.S., with a 20% annual unit growth rate.

• Scale enables competitive pricing and a broad menu, attracting both new and experienced sushi customers.

• Landlord relationships have improved, leading to better site opportunities and increased tenant improvement allowances, keeping net build costs stable at $2.5 million per unit.

• Invitations to high-quality new developments are increasing as brand presence grows.

Financial performance and margin outlook

• Recent quarters saw strong traffic and ticket-driven growth, especially in November and December, attributed to successful limited-time offers and IP campaigns.

• Effective price increases (4.5% as of November 1) and value positioning have driven improved flow-through and guest traffic.

• Tariffs impacted cost of goods sold by 150-200 basis points, but supplier negotiations split the burden 50/50.

• Fiscal 2026 restaurant-level margin guidance is 18%, with expectations to approach 20% in fiscal 2027 through pricing, robotics, and improved insurance structure.

• New market openings and reduced cannibalization are expected to provide margin tailwinds.

Technology and operational innovation

• Robotic dishwashers, developed by the parent company, will be installed in the back half of fiscal 2026, expected to improve margins by 50 basis points.

• Access to proprietary technology from the parent company for a fixed royalty supports ongoing automation and efficiency.

• Future upgrades (Dishwasher 2.0) aim to further reduce labor needs in dishwashing, potentially lowering staffing requirements.