Kura Sushi USA (KRUS) Q1 2026 earnings summary

Executive summary

• Fiscal Q1 2026 sales reached $73.5 million, up 14% year-over-year, driven by new restaurant openings and menu price increases, despite a 2.5% decrease in comparable sales.

• Four new restaurants opened in Q1, bringing the total to 83 locations in 22 states and Washington, DC, with 10 more under construction and a target of 16 new units for the year, maintaining over 20% annual unit growth.

• Operating loss widened to $3.7 million from $1.5 million year-over-year; net loss was $3.1 million or -$0.25/share, compared to $1.0 million or -$0.08/share prior year.

• Adjusted net loss (excluding litigation accrual) was $2.8 million or -$0.23/share.

• Aggressive cost management initiatives reduced G&A as a percentage of sales by 80 basis points (adjusted), and labor cost leverage is expected to improve by 100 basis points in fiscal 2026.

Financial highlights

• Comparable sales declined 2.5% year-over-year, with negative traffic and flat price/mix; West Coast and Southwest markets saw similar declines.

• Food and beverage costs rose to 29.9% of sales (from 29%), mainly due to tariffs; labor costs improved to 32.5% (from 32.9%).

• Restaurant-level operating profit margin was 15.1% (down from 18.2%); adjusted EBITDA was $2.4 million (down from $3.6 million), with margin at 3.3% (down from 5.5%).

• Cash and cash equivalents at quarter-end were $35.4 million, with total liquidity including investments at $78.5 million and no debt.

• General and administrative expenses grew to $9.6 million, with litigation and professional fees contributing to the increase.

Outlook and guidance

• Fiscal 2026 sales expected between $330–$334 million, with 16 new units planned and average net capital expenditures per unit at $2.5 million.

• G&A expenses projected at 12–12.5% of sales; full-year restaurant-level operating profit margin targeted at 18%.

• No further price increases planned for fiscal 2026; confident in achieving flat to slightly positive comps for the year.

• Tariffs are anticipated to continue impacting food, construction, and equipment costs, with menu price increases partially offsetting these pressures.

• Management expects G&A expenses to rise to support growth.