Kura Sushi’s second quarter results were received positively by the market, reflecting outperformance compared to Wall Street’s expectations. Management cited the successful rollout of a new reservation system and a robust marketing calendar as important contributors to sequential improvement in same-store sales through the quarter. CEO Hajime Jimmy Uba credited “meaningful progress on building a restaurant pipeline” and early traction from recent openings, particularly in new markets like the Pacific Northwest, as key operational highlights. The company also pointed to improved food cost management and continued execution on supply chain initiatives.
Is now the time to buy KRUS? Find out in our full research report (it’s free).
Kura Sushi (KRUS) Q2 CY2025 Highlights:
- Revenue: $73.97 million vs analyst estimates of $72.13 million (17.3% year-on-year growth, 2.5% beat)
- Adjusted EPS: $0.05 vs analyst estimates of -$0.01 (significant beat)
- Adjusted EBITDA: $5.41 million vs analyst estimates of $4.84 million (7.3% margin, 11.8% beat)
- The company lifted its revenue guidance for the full year to $281 million at the midpoint from $277 million, a 1.4% increase
- Operating Margin: -0.2%, up from -1.9% in the same quarter last year
- Locations: 76 at quarter end, up from 63 in the same quarter last year
- Same-Store Sales fell 2.1% year on year (0.6% in the same quarter last year)
- Market Capitalization: $917.8 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Kura Sushi’s Q2 Earnings Call
- Jeremy Hamblin (Craig Hallum) asked about the interplay between the reservation system rollout and IP collaborations in driving comp trends. Senior Vice President Benjamin Porten explained that both contributed to sequential monthly improvement and that further upside may come as reservation messaging expands to all guests.
- Jeffrey Bernstein (Barclays) pressed for more detail on tariff risk, asking how recent changes might affect cost structure. CFO Jeff Uttz said it’s too early to quantify, but supplier negotiations should blunt the impact, and pricing action would be a last resort.
- Zach Ogden (TD Cowen) questioned whether new store productivity is improving. Porten confirmed that the 2025 class is performing better than 2024, driven by strong openings in new and smaller markets.
- Todd Brooks (Benchmark Company) inquired about the broader customer reach of the reservation system and plans for non-loyalty members. Porten said expanding communication is a priority and noted early data showing improved guest seating times and potential for increased loyalty registrations.
- Jon Tower (Citi) asked about the sustainability of restaurant-level margins and the impact of more frequent IP campaigns. CEO Uba affirmed the target to return to 20%+ margins as comps improve, aided by continuous IP campaigns and operational levers like the new reservation system.
Catalysts in Upcoming Quarters
In coming quarters, StockStory analysts will watch (1) the measurable impact of the reservation system on guest traffic and labor efficiency, (2) the effectiveness and sales contribution of uninterrupted IP collaborations, and (3) continued performance of new and existing restaurant locations, especially as the company expands into smaller markets. Progress on cost containment and technology adoption will also be key signposts.
Kura Sushi currently trades at $75.66, down from $86.78 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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