Fiscal fourth quarter and fiscal year 2026
Filed Nov 5, 2026Kura Sushi USA Announces Fiscal Fourth Quarter and Fiscal Year 2026 Financial Results
Fiscal fourth-quarter comparable restaurant sales decreased 5.7%, operating results moved to a loss, and adjusted net income declined, while fiscal-year sales and adjusted EBITDA increased and the Company issued fiscal year 2027 growth targets.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales, three months ended August 31, 2026GAAP | $88.88M | – | – |
| Sales, twelve months ended August 31, 2026GAAP | $328.3M | – | – |
| Food and beverage costs, three months ended August 31, 2026GAAP | $26.43M | – | – |
| Labor and related costs, three months ended August 31, 2026GAAP | $27.05M | – | – |
| Occupancy and related expenses, three months ended August 31, 2026GAAP | $6.94M | – | – |
| Depreciation and amortization expenses, restaurant operating costs, three months ended August 31, 2026GAAP | $4.86M | – | – |
| Other costs, three months ended August 31, 2026GAAP | $12.97M | – | – |
| Total restaurant operating costs, three months ended August 31, 2026GAAP | $78.25M | – | – |
| General and administrative expenses, three months ended August 31, 2026GAAP | $9.92M | – | – |
| Impairment and disposal of long-lived assets, three months ended August 31, 2026GAAP | $1.23M | – | – |
| Total operating expenses, three months ended August 31, 2026GAAP | $89.52M | – | – |
| Operating income (loss), three months ended August 31, 2026GAAP | −$643K | – | – |
| Operating income (loss) margin, three months ended August 31, 2026GAAP | (0.7)% | – | – |
| Interest expense, three months ended August 31, 2026GAAP | $17K | – | – |
| Interest income, three months ended August 31, 2026GAAP | −$450K | – | – |
| Income (loss) before income taxes, three months ended August 31, 2026GAAP | −$210K | – | – |
| Income tax expense, three months ended August 31, 2026GAAP | $86K | – | – |
| Net income (loss), three months ended August 31, 2026GAAP | −$296K | – | – |
| Net income (loss) per Class A and Class B diluted shares, three months ended August 31, 2026GAAP | $(0.02) | – | – |
| Weighted average Class A and Class B diluted shares outstanding, three months ended August 31, 2026GAAP | 12.15M | – | – |
| Comprehensive income (loss), three months ended August 31, 2026GAAP | −$267K | – | – |
| Comparable restaurant sales performance, three months ended August 31, 2026other | (5.7)% | – | (5.7)% |
| EBITDA, three months ended August 31, 2026non-GAAP | $4.34M | – | – |
| Adjusted EBITDA, three months ended August 31, 2026non-GAAP | $7.71M | – | – |
| Adjusted EBITDA margin, three months ended August 31, 2026non-GAAP | 8.7% | – | – |
| Adjusted net income (loss), three months ended August 31, 2026non-GAAP | $931K | – | – |
| Adjusted net income (loss) per Class A and Class B diluted shares, three months ended August 31, 2026non-GAAP | $0.08 | – | – |
| Restaurant-level operating profit, three months ended August 31, 2026non-GAAP | $16.96M | – | – |
| Restaurant-level operating profit margin, three months ended August 31, 2026non-GAAP | 19.1% | – | – |
| Sales, twelve months ended August 31, 2026GAAP | $328.3M | – | – |
| Food and beverage costs, twelve months ended August 31, 2026GAAP | $98.59M | – | – |
| Labor and related costs, twelve months ended August 31, 2026GAAP | $101.8M | – | – |
| Occupancy and related expenses, twelve months ended August 31, 2026GAAP | $25.97M | – | – |
| Depreciation and amortization expenses, restaurant operating costs, twelve months ended August 31, 2026GAAP | $17.21M | – | – |
| Other costs, twelve months ended August 31, 2026GAAP | $48.92M | – | – |
| Total restaurant operating costs, twelve months ended August 31, 2026GAAP | $292.5M | – | – |
| General and administrative expenses, twelve months ended August 31, 2026GAAP | $40.63M | – | – |
| Impairment and disposal of long-lived assets, twelve months ended August 31, 2026GAAP | $1.23M | – | – |
| Total operating expenses, twelve months ended August 31, 2026GAAP | $334.9M | – | – |
| Operating income (loss), twelve months ended August 31, 2026GAAP | −$6.59M | – | – |
| Operating income (loss) margin, twelve months ended August 31, 2026GAAP | (2.0)% | – | – |
| Income tax expense, twelve months ended August 31, 2026GAAP | $222K | – | – |
| Net income (loss), twelve months ended August 31, 2026GAAP | −$4.64M | – | – |
| Net income (loss) per Class A and Class B diluted shares, twelve months ended August 31, 2026GAAP | $(0.38) | – | – |
| Comparable restaurant sales performance, twelve months ended August 31, 2026other | (0.4)% | – | (0.4)% |
| Average unit volumes, twelve months ended August 31, 2026other | $3.8M | – | – |
| EBITDA, twelve months ended August 31, 2026non-GAAP | $11.12M | – | – |
| Adjusted EBITDA, twelve months ended August 31, 2026non-GAAP | $22.19M | – | – |
| Adjusted EBITDA margin, twelve months ended August 31, 2026non-GAAP | 6.8% | – | – |
| Adjusted net income (loss), twelve months ended August 31, 2026non-GAAP | −$1.97M | – | – |
| Adjusted net income (loss) per Class A and Class B diluted shares, twelve months ended August 31, 2026non-GAAP | $(0.16) | – | – |
| Adjusted general and administrative expenses, twelve months ended August 31, 2026non-GAAP | $39.18M | – | – |
| Adjusted general and administrative expenses as a percentage of sales, twelve months ended August 31, 2026non-GAAP | 11.9% | – | – |
| Restaurant-level operating profit, twelve months ended August 31, 2026non-GAAP | $58.99M | – | – |
| Restaurant-level operating profit margin, twelve months ended August 31, 2026non-GAAP | 18.0% | – | – |
| Restaurants at the end of periodother | 95 | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal Year 2027 outlook
- RevenueTotal sales between $376 million and $381 million
- Operating expensesGeneral and administrative expenses as a percentage of sales of approximately 11.5%
- Note17 new restaurants, with average net capital expenditures per unit of approximately $2.6 million
- NoteRestaurant-level operating profit margins of approximately 19.0%
What drove it
- Fourth-quarter comparable restaurant sales decreased 5.7%, consisting of negative traffic of 11.5% and price/mix increase of 5.8%.
- Fiscal-year comparable restaurant sales decreased 0.4%, consisting of negative traffic of 4.3% and price/mix increase of 3.9%.
- Food and beverage costs were affected by tariffs on imported ingredients, partially offset by menu-price increases.
- Fourth-quarter labor and related costs as a percentage of sales decreased to 30.4% from 31.1%, primarily due to operational efficiencies and pricing, partially offset by low-single digit wage inflation.
- Four new restaurants opened during the fiscal fourth quarter, and sixteen new restaurants had opened since the fourth quarter of 2025.
- Other costs in the fiscal fourth quarter included a one-time tariff refund benefit of approximately $0.5 million for some promotional items.
Concerns
- Fourth-quarter operating loss was $0.6 million, compared to operating income of $1.5 million in the fourth quarter of 2025.
- Fiscal-year operating loss was $6.6 million, compared to operating loss of $4.8 million in fiscal year 2025.
- Fourth-quarter net loss was $0.3 million, compared to net income of $2.3 million.
- Fiscal-year adjusted net loss was $2.0 million, compared to adjusted net income of $0.4 million.
- Impairment and disposal of long-lived assets were $1.2 million in fiscal year 2026, including an impairment charge related to one restaurant location as a result of its performance and other restaurants’ losses on disposal of equipment.
- Cash and cash equivalents declined to $28,384 (in thousands) as of August 31, 2026 from $47,498 (in thousands) as of August 31, 2025.
What to watch
- Comparable restaurant sales, including traffic and price/mix.
- Execution of the fiscal year 2027 plan for 17 new restaurants.
- Restaurant-level operating profit margins targeted at approximately 19.0%.
- General and administrative expenses as a percentage of sales targeted at approximately 11.5%.
- The effect of tariffs and consumer headwinds on food and beverage costs and traffic.
Balance sheet and cash flow
- Cash and cash equivalents were $28,384 (in thousands) as of August 31, 2026, compared to $47,498 (in thousands) as of August 31, 2025.
- Total assets were $481,131 (in thousands) as of August 31, 2026, compared to $430,942 (in thousands) as of August 31, 2025.
- Total liabilities were $249,194 (in thousands) as of August 31, 2026, compared to $199,872 (in thousands) as of August 31, 2025.
- Total stockholders’ equity was $231,937 (in thousands) as of August 31, 2026, compared to $231,070 (in thousands) as of August 31, 2025.
Analysis
Kura Sushi closed fiscal 2026 with fourth-quarter sales of $88.9 million, compared to $79.4 million in the fourth quarter of 2025, but comparable restaurant sales decreased 5.7%. The comparable-sales decline consisted of negative traffic of 11.5%, partly offset by a price/mix increase of 5.8%. Fiscal-year sales were $328.3 million compared to $282.8 million, while fiscal-year comparable restaurant sales decreased 0.4%, with negative traffic of 4.3% and price/mix increase of 3.9%.
Fourth-quarter profitability weakened materially. Operating loss was $0.6 million versus operating income of $1.5 million, and net loss was $0.3 million, or $(0.02) per diluted share, versus net income of $2.3 million, or $0.18 per diluted share. Adjusted net income was $0.9 million, or $0.08 per diluted share, compared to $2.5 million, or $0.20 per diluted share. The quarter included $1.2 million of impairment and disposal of long-lived assets.
The cost mix reflects tariff pressure and the benefits of operating leverage in labor. Food and beverage costs were 29.7% of sales compared to 28.4%, primarily due to tariffs on imported ingredients, partially offset by menu-price increases. Labor and related costs were 30.4% of sales compared to 31.1%, primarily due to operational efficiencies and pricing. Restaurant-level operating profit increased to $17.0 million from $15.7 million, but its margin declined to 19.1% from 19.8%. Adjusted EBITDA increased to $7.7 million from $7.4 million, while adjusted EBITDA margin declined to 8.7% from 9.3%.
For the full year, adjusted EBITDA increased to $22.2 million from $19.1 million and adjusted EBITDA margin increased to 6.8% from 6.7%. However, GAAP operating loss widened to $6.6 million from $4.8 million, while net loss widened to $4.6 million from $1.9 million. The Company expanded to 95 restaurants at period end from 79 and reported average unit volumes of $3.8 million compared to $3.9 million. Cash and cash equivalents were $28,384 (in thousands) at August 31, 2026, compared with $47,498 (in thousands) a year earlier.
Fiscal year 2027 guidance calls for total sales between $376 million and $381 million, 17 new restaurants, average net capital expenditures per unit of approximately $2.6 million, general and administrative expenses as a percentage of sales of approximately 11.5%, and restaurant-level operating profit margins of approximately 19.0%. The outlook places emphasis on unit growth and maintaining restaurant-level margins while traffic, tariff costs, cash usage, and the execution of new openings remain central reported watch items.
Management, verbatim
As we look back at our fiscal year 2026, I’m proud of our efforts to protect margin despite tariffs and consumer headwinds. While tariffs collectively increased our costs of goods sold and other costs by 180 basis points, we were able to offset these increases with labor leverage of 190 basis points as compared to fiscal year 2025, driven by the technological innovation that is core to our concept. Our continued commitment to G&A leverage is reflected in the 90 basis point improvement, and we were also able to grow Adjusted EBITDA margin and dollars as compared to fiscal year 2025.
Hajime Uba, President, Chief Executive Officer and Chief Financial Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Debt was not reported.
- Share repurchases were not reported.
- Dividends were not reported.
- Prior-period outlook was not provided, so comparison of actual results with prior guidance was not available.
- Fiscal year 2027 gross-margin guidance was not reported.
- Fiscal year 2027 tax-rate guidance was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.