Kura Sushi’s (NASDAQ:KRUS) Q4 CY2025 Financial Results: Revenue Meets Projections

Kura Sushi Q4 CY2025 Earnings Overview

Kura Sushi (NASDAQ: KRUS), a popular sushi restaurant chain, reported fourth-quarter revenue of $73.46 million for CY2025, reflecting a 14% increase compared to the same period last year and matching Wall Street's projections. The company's full-year revenue outlook stands at $332 million at the midpoint, which is 0.7% higher than what analysts had anticipated. However, the adjusted net loss per share was $0.23, falling short of consensus estimates by 45.6%.

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Highlights from Q4 CY2025

• Revenue: $73.46 million, nearly matching analyst expectations of $73.65 million (14% year-over-year growth)
• Adjusted EPS: -$0.23, compared to the expected -$0.16 (missed by 45.6%)
• Adjusted EBITDA: $2.44 million, slightly below the $3.41 million forecast (margin of 3.3%)
• Full-Year Revenue Guidance: Reaffirmed at $332 million at the midpoint
• Operating Margin: -5%, down from -2.3% in the same quarter last year
• Total Locations: 83 at quarter’s end, up from 70 a year ago
• Same-Store Sales: Declined 2.5% year-over-year (compared to a 1.8% drop last year)
• Market Cap: $712.5 million

President and CEO Hajime Uba commented, “We are making meaningful strides toward our annual objectives. Of our target to open sixteen new restaurants, ten are currently under construction, in addition to the four already launched this year. Our focus on disciplined cost control has improved our G&A expenses as a share of sales, and we’ve also made progress in managing labor costs, boosting our confidence for fiscal 2026. The first quarter has set a solid base for the rest of the year.”

About Kura Sushi

Kura Sushi (NASDAQ: KRUS) is recognized for its unique conveyor belt system that delivers Japanese dishes directly to diners. The chain blends traditional Japanese cuisine with innovative technology and modern touches.

Revenue Trends

Evaluating a company’s performance over several years can reveal its underlying strength. While any business may experience short-term gains, sustained growth is a hallmark of quality.

With $291.8 million in revenue over the past year, Kura Sushi remains a relatively small player in the restaurant industry. This can be a disadvantage compared to larger brands with greater recognition and economies of scale. However, its smaller size also allows for faster expansion as it opens new locations in untapped markets.

Over the last six years, Kura Sushi has achieved an impressive annualized revenue growth rate of 27.4%, largely driven by opening new restaurants and expanding its footprint.

In the most recent quarter, revenue rose 14% year-over-year to $73.46 million, aligning with analyst forecasts.

Looking forward, analysts predict an 18% revenue increase over the next year—a slower pace than the previous six years, but still a strong outlook that suggests confidence in Kura Sushi’s menu and growth strategy.

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Restaurant Expansion and Performance

Growth in Restaurant Count

The number of locations a restaurant chain operates directly impacts its sales potential and growth rate.

Kura Sushi ended the quarter with 83 restaurants, having rapidly expanded over the past two years with an average annual growth rate of 26.5%—outpacing much of the industry. This rapid expansion positions the company to evolve into a mid-sized chain over time.

Opening new locations typically signals strong demand and opportunities in markets where the brand is still establishing its presence.

Same-Store Sales Analysis

While expanding the number of restaurants is important, the performance of existing locations is equally crucial. Same-store sales measure organic growth at restaurants open for at least a year, offering insight into the health of established outlets.

Over the past two years, Kura Sushi’s same-store sales have remained flat, indicating limited growth in customer traffic at existing locations. The company may need to focus on boosting efficiency and attracting more guests before further expanding its footprint.

In the latest quarter, same-store sales dropped by 2.5% year-over-year, marking a further slowdown from previous trends. There is hope that the business can regain momentum in the coming quarters.

Summary of Q4 Results

Kura Sushi exceeded expectations for same-store sales this quarter and slightly raised its full-year revenue guidance above Wall Street’s consensus. However, both EBITDA and EPS fell short of forecasts, making this a weaker quarter overall. Following the report, shares fell 2% to $54.59.

While the recent earnings were disappointing, a single quarter does not define the company’s long-term prospects. To determine if Kura Sushi is a worthwhile investment at current prices, it’s important to consider both business quality and valuation.