Latest news with #KuraSushiUSA
Yahoo
08-07-2025
- Business
- Yahoo
Kura Sushi USA Announces Fiscal Third Quarter 2025 Financial Results
IRVINE, Calif., July 08, 2025 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. ('Kura Sushi' or the 'Company') (NASDAQ: KRUS), a technology-enabled Japanese restaurant concept, today announced financial results for the fiscal third quarter ended May 31, 2025. Fiscal Third Quarter 2025 Highlights Total sales were $74.0 million, compared to $63.1 million in the third quarter of 2024; Comparable restaurant sales decreased 2.1% for the third quarter of 2025 as compared to the third quarter of 2024; Operating loss was $0.2 million, compared to an operating loss of $1.2 million in the third quarter of 2024; Net income was $0.6 million, or $0.05 per diluted share, compared to net loss of $0.6 million, or $(0.05) per diluted share, in the third quarter of 2024; Adjusted net income* was $0.6 million, or $0.05 per diluted share, compared to an adjusted net income* of four thousand dollars or $0.00 per diluted share, in the third quarter of 2024; Restaurant-level operating profit* was $13.5 million, or 18.2% of sales; Adjusted EBITDA* was $5.4 million; and Three new restaurants opened during the fiscal third quarter of 2025. *Adjusted net income (loss), Restaurant-level operating profit and Adjusted EBITDA are non-GAAP measures and are defined below under 'Key Financial Definitions.' Please see the reconciliation of non-GAAP measures accompanying this release. See also 'Non-GAAP Financial Measures' below. Hajime Uba, President and Chief Executive Officer of Kura Sushi, stated, 'The third quarter was a very busy one for us, between rolling out the new reservation system, investigating new market opportunities, and building out our IP pipeline and strategizing on how to get the most out of our Bikkurapon collaborations. I'm extremely pleased with the results on all three fronts, and very proud of the efforts by our team members to capture the full opportunity of the summer season and set ourselves up for a great fiscal 2026.' Review of Fiscal Third Quarter 2025 Financial Results Total sales were $74.0 million compared to $63.1 million in the third quarter of 2024. Comparable restaurant sales decreased 2.1%, consisting of negative traffic of 2.9% and price/mix of 0.8% for the third quarter of 2025 as compared to the third quarter of 2024. Food and beverage costs as a percentage of sales were 28.3% compared to 29.2% in the third quarter of 2024. The decrease is primarily due to increases in menu prices and supply chain initiatives, partially offset by food cost inflation. Labor and related costs as a percentage of sales were 33.1% compared to 32.6% in the third quarter of 2024. The increase is primarily due to increases in wage rates, partially offset by increases in menu prices and operational efficiencies. Occupancy and related expenses were $5.5 million compared to $4.3 million in the third quarter of 2024. The increase is primarily due to thirteen new restaurants opening since the third quarter of 2024. Other costs as a percentage of sales were 14.7% compared to 14.1% the third quarter of 2024. The increase is primarily driven by utilities, repairs and maintenance, partially offset by lower marketing expenses. General and administrative expenses were $8.7 million compared to $8.9 million in the third quarter of 2024. As a percentage of sales, general and administrative expenses decreased to 11.8%, as compared to 14.0% in the third quarter of 2024, primarily due to sales leverage and a decrease in professional fees and litigation expenses. Operating loss was $0.2 million compared to an operating loss of $1.2 million in the third quarter of 2024. Income tax expense was $55 thousand compared to income tax expense of $60 thousand in the third quarter of 2024. Net income was $0.6 million, or $0.05 per diluted share, compared to net loss of $0.6 million, or $(0.05) per diluted share, in the third quarter of 2024. Adjusted net income* was $0.6 million, or $0.05 per diluted share, compared to adjusted net income* of four thousand dollars or $0.00 per diluted share, in the third quarter of 2024. Restaurant-level operating profit* was $13.5 million, or 18.2% of sales, compared to $12.6 million, or 20.0% of sales, in the third quarter of 2024. Adjusted EBITDA* was $5.4 million compared to $4.5 million in the third quarter of 2024. Restaurant Development During the fiscal third quarter of 2025, the Company opened three new restaurants in Scottsdale, Arizona; Lynnwood, Washington; and McKinney, Texas. Subsequent to May 31, 2025, the Company opened two new restaurants in The Woodlands, Texas and Salt Lake City, Utah. Fiscal Year 2025 Outlook For the full fiscal year of 2025, the Company updates the following annual guidance: Total sales of approximately $281 million; 15 new restaurants, maintaining an annual unit growth rate above 20%, with average net capital expenditures per unit of approximately $2.5 million; and General and administrative expenses as a percentage of sales to be below 13.0% exclusive of legal settlements. Conference Call A conference call and webcast to discuss Kura Sushi's financial results is scheduled for 5:00 p.m. EDT today. Hosting the conference call and webcast will be Hajime 'Jimmy' Uba, President and Chief Executive Officer, Jeff Uttz, Chief Financial Officer, and Benjamin Porten, SVP Investor Relations & System Development. Interested parties may listen to the conference call via telephone by dialing 201-689-8471. A telephone replay will be available shortly after the call has concluded and can be accessed by dialing 412-317-6671; the passcode is 13751708. The webcast will be available at under the investor relations section and will be archived on the site shortly after the call has concluded. About Kura Sushi USA, Inc. Kura Sushi USA, Inc. is a leading technology-enabled Japanese restaurant concept with 78 locations across 21 states and Washington DC. The Company offers guests a distinctive dining experience built on authentic Japanese cuisine and an engaging revolving sushi service model. Kura Sushi USA, Inc. was established in 2008 as a subsidiary of Kura Sushi, Inc., a Japan-based revolving sushi chain with more than 650 restaurants internationally and 45 years of brand history. For more information, please visit Key Financial Definitions a non-GAAP measure, is defined as net income (loss) before certain items, such as litigation expenses, that the Company believes are not indicative of its core operating results. Adjusted net income (loss) per diluted share represents adjusted net income (loss) divided by the number of diluted shares. a non-GAAP measure, is defined as net income (loss) before interest, income taxes and depreciation and amortization expenses. a non-GAAP measure, is defined as EBITDA plus stock-based compensation expense, non-cash lease expense and asset disposals, closure costs and restaurant impairments, as well as certain items, such as litigation expenses that the Company believes are not indicative of its core operating results. Adjusted EBITDA margin is defined as adjusted EBITDA divided by sales. a non-GAAP measure, is defined as operating income (loss) plus depreciation and amortization expenses; stock-based compensation expense; pre-opening costs and general and administrative expenses which are considered normal, recurring, cash operating expenses and are essential to supporting the development and operations of restaurants; non-cash lease expense; and asset disposals, closure costs and restaurant impairments; less corporate-level stock-based compensation expense recognized within general and administrative expenses. Restaurant-level operating profit (loss) margin is defined as restaurant-level operating profit (loss) divided by sales. refers to the percent change in year-over-year sales for the comparable restaurant base. The Company includes restaurants in the comparable restaurant base that have been in operation for at least 18 full calendar months by the end of the accounting period presented due to new restaurants experiencing a period of higher sales upon opening. For restaurants that were temporarily closed the comparative period was also adjusted accordingly. Non-GAAP Financial Measures To supplement the financial statements presented in accordance with U.S. generally accepted accounting principles ('GAAP'), the Company presents certain financial measures, such as adjusted net income (loss), EBITDA, adjusted EBITDA, adjusted EBITDA margin, restaurant-level operating profit (loss) and restaurant-level operating profit (loss) margin ('non-GAAP measures') that are not recognized under GAAP. These non-GAAP measures are intended as supplemental measures of its performance that are neither required by, nor presented in accordance with, GAAP. The Company is presenting these non-GAAP measures because the Company believes that they provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and operating results. These measures also may not provide a complete understanding of the operating results of the Company as a whole and such measures should be reviewed in conjunction with its GAAP financial results. Additionally, the Company presents restaurant-level operating profit (loss) because it excludes the impact of general and administrative expenses which are not incurred at the restaurant-level. The Company also uses restaurant-level operating profit (loss) to measure operating performance and returns from opening new restaurants. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware that restaurant-level operating profit (loss) and restaurant-level operating profit (loss) margin are financial measures which are not indicative of overall results for the Company, and restaurant-level operating profit (loss) and restaurant-level operating profit (loss) margin do not accrue directly to the benefit of stockholders because of corporate-level and certain other expenses excluded from such measures. In addition, you should be aware when evaluating these non-GAAP financial measures that in the future the Company may incur expenses similar to those excluded when calculating these measures. The Company's presentation of these measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. The Company's computation of these non-GAAP financial measures may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate these non-GAAP financial measures in the same fashion. Because of these limitations, these non-GAAP financial measures should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. The Company compensates for these limitations by relying primarily on its GAAP results and using these non-GAAP financial measures on a supplemental basis. Forward-Looking Statements Except for historical information contained herein, the statements in this press release or otherwise made by the Company's management in connection with the subject matter of this press release are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and involve risks and uncertainties and are subject to change based on various important factors. This press release includes forward-looking statements that are based on management's current estimates or expectations of future events or future results. These statements are not historical in nature and can generally be identified by such words as 'target,' 'may,' 'might,' 'will,' 'objective,' 'intend,' 'should,' 'could,' 'can,' 'would,' 'expect,' 'believe,' 'design,' 'estimate,' 'continue,' 'predict,' 'potential,' 'plan,' 'anticipate' or the negative of these terms, and similar expressions. Management's expectations and assumptions regarding future results are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements included in this press release. These risks and uncertainties include but are not limited to: the Company's ability to successfully maintain increases in our comparable restaurant sales; the Company's ability to successfully execute our growth strategy and open new restaurants that are profitable; the Company's ability to expand in existing and new markets; the Company's projected growth in the number of its restaurants; macroeconomic conditions and other economic factors; the Company's ability to compete with many other restaurants; the Company's reliance on vendors, suppliers and distributors, including its majority stockholder Kura Sushi, Inc.; changes in food and supply costs, including the impact of inflation and tariffs; concerns regarding food safety and foodborne illness; changes in consumer preferences and the level of acceptance of the Company's restaurant concept in new markets; minimum wage increases and mandated employee benefits that could cause a significant increase in labor costs, as well as the impact of labor availability; the failure of the Company's automated equipment or information technology systems or the breach of its network security; the loss of key members of the Company's management team; the impact of governmental laws and regulations; volatility in the price of the Company's common stock; and other risks and uncertainties as described in the Company's filings with the Securities and Exchange Commission ('SEC'). These and other factors that could cause results to differ materially from those described in the forward-looking statements contained in this press release can be found in the Company's other filings with the SEC. Undue reliance should not be placed on forward-looking statements, which are only current as of the date they are made. The Company assumes no obligation to update or revise its forward-looking statements, except as may be required by applicable law. Investor Relations Contact:Jeff Priester or Steven Boediarto(657) 333-4010investor@ Kura Sushi USA, of Operations and Comprehensive Income (Loss)(in thousands, except for per share data; unaudited) Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 2025 2024 Sales $ 73,965 $ 63,082 $ 203,315 $ 171,848 Restaurant operating costs: Food and beverage costs 20,928 18,391 58,225 50,691 Labor and related costs 24,478 20,534 68,306 55,712 Occupancy and related expenses 5,538 4,318 15,391 12,179 Depreciation and amortization expenses 3,450 3,124 9,827 8,294 Other costs 10,883 8,920 29,004 24,720 Total restaurant operating costs 65,277 55,287 180,753 151,596 General and administrative expenses 8,741 8,857 28,459 25,634 Depreciation and amortization expenses 109 107 328 318 Total operating expenses 74,127 64,251 209,540 177,548 Operating loss (162 ) (1,169 ) (6,225 ) (5,700 ) Other expense (income): Interest expense 30 15 56 35 Interest income (812 ) (686 ) (2,236 ) (2,280 ) Income (loss) before income taxes 620 (498 ) (4,045 ) (3,455 ) Income tax expense 55 60 132 148 Net income (loss) $ 565 $ (558 ) $ (4,177 ) $ (3,603 ) Net income (loss) income per Class A and Class B shares Basic $ 0.05 $ (0.05 ) $ (0.35 ) $ (0.32 ) Diluted $ 0.05 $ (0.05 ) $ (0.35 ) $ (0.32 ) Weighted average Class A and Class B shares outstanding Basic 12,086 11,188 11,855 11,167 Diluted 12,311 11,188 11,855 11,167 Other comprehensive income (loss): Unrealized loss on short-term investments $ (8 ) (76 ) $ (8 ) (43 ) Comprehensive income (loss) $ 557 $ (634 ) $ (4,185 ) $ (3,646 ) Kura Sushi USA, Balance Sheet Data and Selected Operating Data(in thousands, except restaurants and percentages; unaudited) May 31, 2025 August 31, 2024 Selected Balance Sheet Data: Cash and cash equivalents $ 47,132 $ 50,986 Total assets $ 419,373 $ 328,522 Total liabilities $ 192,369 $ 165,984 Total stockholders' equity $ 227,004 $ 162,538 Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 2025 2024 Selected Operating Data: Restaurants at the end of period 76 63 76 63 Comparable restaurant sales performance (2.1 )% 0.6 % (1.9 )% 2.4 % EBITDA $ 3,397 $ 2,062 $ 3,930 $ 2,912 Adjusted EBITDA $ 5,410 $ 4,451 $ 11,656 $ 9,068 Adjusted EBITDA margin 7.3 % 7.1 % 5.7 % 5.3 % Operating loss $ (162 ) $ (1,169 ) $ (6,225 ) $ (5,700 ) Operating loss margin (0.2 )% (1.9 )% (3.1 )% (3.3 )% Restaurant-level operating profit $ 13,492 $ 12,604 $ 36,423 $ 33,874 Restaurant-level operating profit margin 18.2 % 20.0 % 17.9 % 19.7 % Kura Sushi USA, of Net Income (Loss) and Net Income (Loss) Per Diluted Share toAdjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Diluted Share(in thousands, except for per share data; unaudited) Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 2025 2024 Net income (loss) $ 565 $ (558 ) $ (4,177 ) $ (3,603 ) Litigation(3) — 562 2,105 767 Adjusted net income (loss) $ 565 $ 4 $ (2,072 ) $ (2,836 ) Net income (loss) per Class A and Class B diluted shares $ 0.05 $ (0.05 ) $ (0.35 ) $ (0.32 ) Litigation(3) — 0.05 0.18 0.07 Adjusted net income (loss) per Class A and Class B diluted shares $ 0.05 $ 0.00 $ (0.17 ) $ (0.25 ) Weighted average Class A and Class B shares outstanding Diluted shares 12,311 11,188 11,855 11,167 Adjusted diluted shares 12,311 11,531 11,855 11,167 Kura Sushi USA, of Net Income (Loss) to EBITDA and Adjusted EBITDA(in thousands; unaudited) Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 2025 2024 Net income (loss) $ 565 $ (558 ) $ (4,177 ) $ (3,603 ) Interest income, net (782 ) (671 ) (2,180 ) (2,245 ) Income tax expense 55 60 132 148 Depreciation and amortization expenses 3,559 3,231 10,155 8,612 EBITDA 3,397 2,062 3,930 2,912 Stock-based compensation expense(1) 1,293 1,197 3,500 3,169 Non-cash lease expense(2) 720 630 2,121 2,220 Litigation(3) — 562 2,105 767 Adjusted EBITDA $ 5,410 $ 4,451 $ 11,656 $ 9,068 Kura Sushi USA, of Operating Loss to Restaurant-level Operating Profit(in thousands; unaudited) Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 2025 2024 Operating loss $ (162 ) $ (1,169 ) $ (6,225 ) $ (5,700 ) Depreciation and amortization expenses 3,559 3,231 10,155 8,612 Stock-based compensation expense(1) 1,293 1,197 3,500 3,169 Pre-opening costs(4) 404 861 1,305 2,611 Non-cash lease expense(2) 720 630 2,121 2,220 General and administrative expenses 8,741 8,857 28,459 25,634 Corporate-level stock-based compensation in general and administrative expenses (1,063 ) (1,003 ) (2,892 ) (2,672 ) Restaurant-level operating profit $ 13,492 $ 12,604 $ 36,423 $ 33,874 ________________ (1) Stock-based compensation expense includes non-cash stock-based compensation, which is comprised of restaurant-level stock-based compensation included in labor and related costs and corporate-level stock-based compensation included in general and administrative expenses in the statements of operations and comprehensive income (loss). (2) Non-cash lease expense includes lease expense from the date of possession of our restaurants that did not require cash outlay in the respective periods. (3) Litigation includes expenses related to legal claims or settlements. (4) Pre-opening costs consist of labor costs and travel expenses for new employees and trainers during the training period, recruitment fees, legal fees, cash-based lease expenses incurred between the date of possession and opening day of our restaurants, and other related pre-opening costs.
Business Insider
24-06-2025
- Business
- Business Insider
Kura Sushi USA (KRUS) Receives a Buy from William Blair
William Blair analyst Sharon Zackfia maintained a Buy rating on Kura Sushi USA (KRUS – Research Report) today. The company's shares closed today at $80.01. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Zackfia covers the Consumer Cyclical sector, focusing on stocks such as CarMax, Lululemon Athletica, and Kura Sushi USA. According to TipRanks, Zackfia has an average return of 12.0% and a 54.36% success rate on recommended stocks. Kura Sushi USA has an analyst consensus of Moderate Buy, with a price target consensus of $69.13. The company has a one-year high of $110.66 and a one-year low of $40.03. Currently, Kura Sushi USA has an average volume of 310.2K.
Business Insider
04-06-2025
- Business
- Business Insider
Analysts Conflicted on These Consumer Cyclical Names: Boyd Group Services (OtherBYDGF) and Kura Sushi USA (KRUS)
Analysts have been eager to weigh in on the Consumer Cyclical sector with new ratings on Boyd Group Services (BYDGF – Research Report) and Kura Sushi USA (KRUS – Research Report). Confident Investing Starts Here: Boyd Group Services (BYDGF) Noble Financial analyst Mark Jordan initiated coverage with a Hold rating on Boyd Group Services yesterday and set a price target of C$231.00. The company's shares closed last Tuesday at $149.00, close to its 52-week low of $140.89. According to Jordan is ranked #989 out of 9596 analysts. The word on The Street in general, suggests a Strong Buy analyst consensus rating for Boyd Group Services with a $197.01 average price target. Kura Sushi USA (KRUS) William Blair analyst Sharon Zackfia maintained a Buy rating on Kura Sushi USA yesterday. The company's shares closed last Tuesday at $72.60. According to Zackfia is a 5-star analyst with an average return of 13.1% and a 55.4% success rate. Zackfia covers the NA sector, focusing on stocks such as Birkenstock Holding plc, OneSpaWorld Holdings, and Lululemon Athletica. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Kura Sushi USA with a $64.38 average price target.
Yahoo
06-04-2025
- Business
- Yahoo
Kura Sushi USA, Inc. (KRUS): Among the Small Cap Stocks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Kura Sushi USA, Inc. (NASDAQ:KRUS) stands against other small cap stocks with huge upside potential. In times when everyone is chasing high-cap powerhouses, knowing the right stock to invest in at the right time and the right price is highly essential. In this race for Wall Street giants, one must slow down and ask if the stock is really worth it. Or better – is it set to yield the same returns as a high-growth small-cap stock? As Francis Gannon, Co-Chief Investment Officer at Royce Investment Partners, says: 'Small-cap stocks are a 'forgotten' group that present lucrative opportunities for investors seeking diversification amid market uncertainties.' Small-cap stocks have a market capitalization between $300 million and $2 billion. Although generally more volatile and risky, history shows that small-cap stocks have often outperformed large-cap stocks. During the tech bubble of the 1990s, large-cap stocks were everyone's favorite, until the bubble burst in March 2000, when more and more small-cap companies witnessed better performance. In general, the performance of the stock doesn't entirely depend on whether the stock is large-cap or small-cap but more on where the macro and micro environments are taking the business. However, since the small-cap stocks are usually away from the analysts' eyes, they are more undervalued, and so can provide a solid return on the investment. Since there is a high growth potential for such a stock, small-cap stocks are highly valued by analysts. As the business itself is in an early stage of growth, there is more room for a stock boom. Volatility is another reason for holding these stocks. There is an increased likelihood of short-term trading and price swings that an investor can capitalize on. Additionally, many such stocks operate in specialized or niche markets, allowing the analysts to leverage interesting and unique business models, and that too, if successful, can return immensely. The fact that small-cap stocks are common targets for mergers and acquisitions is another reason to believe in these stocks. Analysts keep track of these stocks with the expectation of buyouts, which often leads to a premium in share price. A research report by John Hancock Investment Management on understanding the performance of small-cap stocks indicated that, historically, small-cap stocks have had higher average returns than large-cap stocks. As small-cap stocks work well in diversified portfolios, they behave differently than large-cap stocks. The study examined the existence of size premiums in the United States, emphasizing the historical performance of Fama/French U.S. Small and Large Cap portfolios. The findings show that since the 1920s, small-cap stocks have outperformed large-cap stocks. Another research by Invesco in 2020 revealed that small caps have outpaced large caps from the past four recessions in all but one of the following 1- and 3-year periods. To decide which small-cap stock is right for you, it is pertinent to monitor closely not only the stock itself but also its peers, as it provides a bigger picture. The factors that are crucial in the choice you make include the liquidity position, sensitivity to market swings, financial stability, and connection to AI. The stocks that we have selected are among the ones yielding high upside potential across a range of industries like financial, food, and mining. We have used Finviz and Stock Analysis screeners to select ten stocks with market capitalizations between $300 million and $2 billion. The one-year price targets have been extracted from Yahoo Finance to calculate the upside potential based on the stocks' prices as of March 28, 2025. These companies are then listed according to their upside potential. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a sushi chef, displaying his care and attention to detail in making a dish. Upside Potential: 97% Market Capitalization: $622.611 million Kura Sushi USA, Inc. (NASDAQ:KRUS) is a technology-enabled Japanese restaurant in the United States. The company was formerly known as Kula Sushi USA, Inc. until it revised its name in 2017. This California-based restaurant chain mainly provides access to on-demand ordering screens, plate slots, Bikkura-Pon rewards machines, and express conveyor belts. Here, authentic Japanese cuisine, including Sweet Shrimp, Tuna, Garlic Tuna Steak, and Salmon, is offered through innovative and advanced models. Belonging to a small circle of high-growth restaurant stocks, Kura Sushi USA, Inc. (NASDAQ:KRUS) has gained a lot of attention, particularly from Wall Street. There's hardly any debate. The company's double-digit growth year after year, robust debt management, and considerably high restaurant-level margins are just a few reasons to believe in the stock. Who doesn't love good sushi, especially if it comes with huge upside potential? Its speed is what stands out the most. With plans to open around 14 restaurants in 2025, Kura Sushi USA, Inc. (NASDAQ:KRUS) is maintaining a growth rate of nearly 20% YoY. Not only this, but the company is gearing up to expand in even more locations in the next fiscal year by adopting a real market strategy that aids in maximizing its potential. But expansion isn't the only growth driver for Kura Sushi USA, Inc. (NASDAQ:KRUS). The company recently unveiled an upgraded reservations strategy and a self-service system with an emphasis on operations. When we view this with the 'Perfect Pair' promotion and pricing techniques, despite its weak IP calendar in the first half of FY 2025, we can say that the next half will show a somewhat different picture. Todd Brooks, an analyst at Benchmark, maintains a Buy rating with a price target of $100. The analyst considers Kura Sushi a top pick in the dining industry as it is one of the best stocks with the biggest upside. Overall, KRUS ranks 7th on our list of small cap stocks with huge upside potential. While we acknowledge the potential of KRUS, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KRUS but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
06-04-2025
- Business
- Yahoo
Kura Sushi USA (NASDAQ:KRUS) pulls back 15% this week, but still delivers shareholders strong 29% CAGR over 5 years
Kura Sushi USA, Inc. (NASDAQ:KRUS) shareholders might understandably be very concerned that the share price has dropped 58% in the last quarter. But that doesn't change the fact that the returns over the last five years have been very strong. It's fair to say most would be happy with 258% the gain in that time. We think it's more important to dwell on the long term returns than the short term returns. Only time will tell if there is still too much optimism currently reflected in the share price. Although Kura Sushi USA has shed US$96m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Kura Sushi USA isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. In the last 5 years Kura Sushi USA saw its revenue grow at 35% per year. Even measured against other revenue-focussed companies, that's a good result. So it's not entirely surprising that the share price reflected this performance by increasing at a rate of 29% per year, in that time. This suggests the market has well and truly recognized the progress the business has made. Kura Sushi USA seems like a high growth stock - so growth investors might want to add it to their watchlist. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So it makes a lot of sense to check out what analysts think Kura Sushi USA will earn in the future (free profit forecasts) . We regret to report that Kura Sushi USA shareholders are down 60% for the year. Unfortunately, that's worse than the broader market decline of 2.0%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 29% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. You could get a better understanding of Kura Sushi USA's growth by checking out this more detailed historical graph of earnings, revenue and cash flow. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
