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 due to lower consumer spending.

• 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.

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

• Aggressive cost management reduced G&A as a percentage of sales by 80 basis points (adjusted), and labor cost leverage is ahead of plan.

• Marketing efforts, including IP collaborations and a decoupled reservation system, are driving guest engagement and operational efficiency.

Financial highlights

• Comparable restaurant sales declined 2.5% year-over-year, with negative traffic and flat price/mix.

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

• 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%).

• General and administrative expenses grew 9.4% to $9.6 million, with litigation and professional fees contributing to the increase.

• Cash and cash equivalents at quarter-end were $35.4 million, with no debt outstanding.

Outlook and guidance

• FY26 sales expected between $330–$334 million, with 16 new units planned and annual unit growth above 20%.

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

• No further menu price increases planned for FY26; 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 general and administrative expenses to rise to support growth.