Kura Sushi’s first quarter results were shaped by ongoing expansion into new U.S. markets, successful restaurant openings, and the impact of severe winter weather, which management estimates reduced comparable sales by 400 to 500 basis points. CEO Hajime Jimmy Uba highlighted the company’s operational progress, particularly in opening new locations and rolling out technology upgrades. Despite facing a challenging same-store sales comparison due to the absence of a major IP collaboration and weather disruptions, management emphasized improved supply chain efficiency and cost controls. CFO Jeff Uttz noted that “cost of goods sold as a percentage of sales improved by 90 basis points over the prior year quarter,” pointing to pricing and sourcing changes as key drivers.
Is now the time to buy KRUS? Find out in our full research report (it’s free).
Kura Sushi (KRUS) Q1 CY2025 Highlights:
- Revenue: $64.89 million vs analyst estimates of $65.07 million (13.3% year-on-year growth, in line)
- Adjusted EPS: -$0.14 vs analyst estimates of -$0.14 (in line)
- Adjusted EBITDA: $2.67 million vs analyst estimates of $2.93 million (4.1% margin, relatively in line)
- The company reconfirmed its revenue guidance for the full year of $277 million at the midpoint
- Operating Margin: -7.1%, down from -2.9% in the same quarter last year
- Locations: 73 at quarter end, up from 59 in the same quarter last year
- Same-Store Sales fell 5.3% year on year (3% in the same quarter last year)
- Market Capitalization: $1.10 billion
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 Q1 Earnings Call
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Andrew Charles (TD Cowen) asked about the recovery in traffic after weather disruptions, and CFO Jeff Uttz replied that March performance was smooth but uncertainty remains due to recent tariff announcements.
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Jeffrey Bernstein (Barclays) pressed for evidence distinguishing weather impacts from broader consumer softness; Uttz maintained that recent trends reflected weather rather than consumer weakness, but flagged uncertainty from tariffs.
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Jeremy Hamblin (Craig Hallum) inquired about sources of wage pressure, with Uttz clarifying that high single-digit wage inflation was seen across all markets, not just California, and was driven by statutory minimum wages and market competitiveness.
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Matt Curtis (William Blair) questioned the assumptions behind second-half comparable sales, and Uttz responded that guidance reflects expectations for improved performance from new unit openings and upcoming IP collaborations but did not provide explicit comp guidance.
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JP Wellm (Roth Capital Partners) focused on the reservation system rollout and loyalty-driven marketing, with Uttz emphasizing that system-wide implementation is a top priority and that rewards members are expected to drive higher frequency and spend.
Catalysts in Upcoming Quarters
In upcoming quarters, our analyst team will be monitoring (1) the pace and impact of the reservation system rollout on guest traffic and visit frequency, (2) execution and guest response to new IP collaboration campaigns, and (3) the effect of tariffs and wage inflation on both costs and competitive positioning. Ongoing progress in new market expansion and the adoption of technology upgrades will also be important indicators of future growth.
Kura Sushi currently trades at $90.77, up from $41.36 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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