Kura Sushi USA (KRUS) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales reached $64.9 million, up 13.3% year-over-year, driven by new restaurant openings and menu price increases, but comparable sales declined 5.3% due to reduced traffic, weather, and lack of an IP campaign.

• Net loss widened to $3.8 million ($0.31 per share) for the quarter, impacted by higher operating and administrative costs, including a $2.1 million litigation settlement.

• Opened 11 new units year-to-date, with 6 more under construction; 14 new openings expected for fiscal 2025, expanding the base to 73 locations at quarter-end and 75 as of the report date.

• System development projects, including a new order panel and reservation system, are advancing, with positive guest response and expected operational efficiencies.

• Adjusted net loss was $1.7 million ($0.14 per share), excluding litigation expenses.

Financial highlights

• Total Q2 sales were $64.9 million, up from $57.3 million in the prior year; six-month sales reached $129.4 million, up 18.9%.

• Comparable sales declined 5.3% for the quarter and 1.6% for the six months, with traffic down 8.5% and price/mix up 3.2%.

• Restaurant-level operating profit margin was 17.3% for the quarter, down from 19.6% last year.

• Adjusted EBITDA was $2.7 million (4.1% margin), down from $2.9 million (5.0%) year-over-year.

• Cash and cash equivalents at quarter-end were $85.2 million, up from $51.0 million at prior year-end.

Outlook and guidance

• Fiscal 2025 sales guidance remains $275–$279 million, with 14 new unit openings and annual unit growth above 20%.

• General and administrative expenses expected at approximately 13.5% of sales, including litigation expense.

• Management expects revenue and restaurant operating costs to increase in fiscal 2025 due to continued expansion.

• No material impact from tariffs yet, but potential cost pressures anticipated for the remainder of fiscal 2025.

• Positive comparable sales for the full year are targeted, contingent on stable consumer behavior and no major external shocks.