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

Recent performance and trends

• Positive momentum in comps and traffic continued from November and December into early 2026, with broad-based geographic improvement and strong consumer sentiment.

• Promotions, especially IP collaborations like Kirby and Sanrio, have driven strong results, but underlying performance remains robust even without them.

• Opening the reservation system to non-rewards members and macroeconomic factors have contributed to increased traffic.

• Value perception is growing, with pricing power supported by customer surveys and competitive positioning against mom-and-pop sushi restaurants.

• Effective pricing actions resulted in a 4.5% increase, mainly on sushi plates, with further adjustments considered based on value perception data.

Growth strategy and operational plans

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

• Focus remains on expanding the current standard restaurant model, but smaller two-lane prototypes are being considered for metropolitan areas.

• Smaller units in high-traffic areas have shown strong sales per square foot and cash returns, making them attractive for future expansion.

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

Margin outlook and cost management

• On track for 18% restaurant-level operating profit margins for the year, with a 100 basis point labor improvement expected.

• Confident in returning to 20% margins by fiscal 2027, aided by comp leverage, reduced cannibalization, and new technologies like robotic dishwashers.

• Robotic dishwashers are expected to contribute about 50 basis points to margins, with further labor savings from managerial staffing changes.

• Tariff impacts have been mitigated through supplier negotiations, maintaining COGS guidance at approximately 30%.