Kura Sushi USA (KRUS) Piper Sandler Growth Frontiers Conference summary

Sales trends and outlook

• Recent months showed a clear recovery in consumer strength and general sales across all regions, reversing earlier negative comp guidance.

• August sales were boosted by a successful One Piece IP collaboration, though the impact is hard to isolate.

• Strategy for the new fiscal year focuses on driving efficiencies rather than relying on a strong consumer environment.

Operational efficiencies and cost management

• Rolled out a new kitchen operational mode, reducing stations from four to three in about two-thirds of locations, completed by end of August.

• Early results from the operational change are positive, contributing to maintaining a 20% restaurant-level margin despite sales deceleration.

• Further G&A leverage is expected, with a target of 50-60 basis points improvement per year.

• Office and support center are well-positioned to continue driving cost efficiencies.

Development strategy and market expansion

• Cannibalization from new store openings is within expectations and managed through a balanced pipeline approach.

• Fiscal 2025 pipeline is expected to be 30-40% new markets and 60-70% existing markets, shifting toward a 50/50 mix in 2026.

• Expansion into top 100 DMAs, with high expectations for new units in Bakersfield, CA, and Fishers, IN.

• The 300-unit target is considered conservative due to market fragmentation and increased white space post-pandemic.