Kura Sushi USA (KRUS) The 38th Annual Roth Conference summary

Recent performance and trends

• Positive momentum in comps and traffic continued through December and into early 2026, with broad-based geographic improvement and strong performance across markets.

• Promotions, especially IP collaborations like Kirby and Sanrio, have driven strong results, but improvements are also attributed to macro factors and enhancements to the reservation system.

• Value perception is increasing, with pricing power supported by customer surveys and competitive positioning against local sushi restaurants.

• Pricing actions resulted in a 4.5% increase, mainly on sushi plates, with future increases expected to be more moderate and targeted.

• Restaurant-level operating profit margins are targeted at 18% for the year, with a 100 basis point labor improvement on track.

Growth strategy and operational initiatives

• Confident in maintaining 20% annual unit growth for the foreseeable future, with strong new unit performance and no current cause for concern.

• Exploring smaller restaurant formats, such as two-lane models, to enter new markets and optimize performance in metropolitan areas.

• Balance sheet remains strong with $75 million in cash and a $100 million shelf filed; no urgency to raise capital, providing a 1.5–2 year runway.

• Integrated financial and POS systems provide daily real-time data, with potential ERP implementation considered in the next few years.

Margin outlook and cost management

• Confident in achieving 30% COGS for the year despite tariff impacts, aided by supplier negotiations and cost controls.

• Path to restoring 20%+ four-wall margins includes comp leverage, labor efficiencies, and reduced cannibalization from new unit openings.

• Robotic dishwashers and managerial staffing reductions are expected to deliver labor savings, with dishwashers contributing about 50 basis points and staffing changes already largely implemented.

• Additional technology enhancements are in the pipeline, but details are withheld until further development.