Kura Sushi USA (KRUS) Q1 2026 earnings summary

Executive summary

• Sales reached $73.5 million for fiscal Q1 2026, up 14% year-over-year, driven by new restaurant openings and menu price increases, despite a 2.5% decline in comparable sales.

• Four new restaurants opened in Q1, bringing the total to 83 locations in 22 states and Washington, DC, with 10 more under construction and a target of 16 new units for the year, maintaining over 20% annual unit growth.

• Operating loss widened to $3.7 million from $1.5 million year-over-year; net loss was $3.1 million (–$0.25/share) compared to $1 million (–$0.08/share) last year.

• Adjusted net loss (excluding litigation accrual) was $2.8 million (–$0.23/share).

• Aggressive cost management reduced G&A as a percentage of sales by 80 basis points (adjusted), and labor cost leverage is ahead of expectations.

Financial highlights

• Food and beverage costs were 29.9% of sales, up from 29% last year, mainly due to tariffs; labor costs were 32.5% of sales, down from 32.9%.

• Restaurant-level operating profit margin was 15.1%, down from 18.2% year-over-year; adjusted EBITDA was $2.4 million, down from $3.6 million, with margin at 3.3% from 5.5%.

• Cash and cash equivalents at quarter-end were $35.4 million, with total liquidity including investments at $78.5 million and no debt.

• General and administrative expenses grew 9.4% to $9.6 million, with litigation and professional fees contributing to the increase.

• Net cash provided by operating activities was $0.5 million; net cash used in investing activities was $12.7 million, mainly for new restaurant construction and investments.

Outlook and guidance

• FY26 sales expected between $330–$334 million; 16 new units planned, with average net capex per unit at $2.5 million.

• G&A expenses projected at 12–12.5% of sales; full-year restaurant-level operating profit margin expected at ~18%.

• No further menu price increases planned for FY26; confident in achieving flat to slightly positive comps for the year.

• Tariffs are anticipated to continue impacting food, construction, and equipment costs, with menu price increases partially offsetting these pressures.

• Management expects general and administrative expenses to rise to support growth.