Kura Sushi (KRUS) Q4 2025 Earnings Surpass Expectations, Revenue Grows 20.3% Compared to Last Year
- Kura Sushi (KRUS) reported Q4 2025 revenue of $79.4M, up 20.3% YoY, with $0.18 EPS exceeding forecasts. - Net income turned positive at $2. 3M vs. $5.2M loss in 2024, driven by cost cuts and 15 new U.S. locations. - 2026 guidance targets $330-334M sales with 16 new restaurants, but faces challenges in boosting traffic and pricing.
On November 6, 2025,
This strong performance was attributed to robust revenue gains and enhanced operational efficiency. Net income was $2.3 million, a turnaround from the $5.2 million net loss reported a year earlier. Operating income improved to $1.5 million, reversing an operating loss of $5.8 million in the prior year. Adjusted EBITDA rose to $7.4 million from $5.5 million in the fourth quarter of 2024, highlighting successful cost control and operational enhancements.
Kura
General and administrative expenses experienced a notable decline, falling to $9.3 million in Q4 2025 from $13.4 million in the same period last year. This reduction was mainly due to lower litigation costs, which contributed to the company’s improved profitability. Hajime Uba, President and CEO of
The company’s financial improvements were supported by a more efficient cost structure. Food and beverage expenses held steady at 28.4% of sales, while labor costs edged down to 31.1% of sales, thanks to operational improvements and pricing initiatives. These measures enabled Kura Sushi to remain profitable despite inflationary pressures and increasing labor expenses.
Kura Sushi’s financial position remains strong, with $47.5 million in cash and cash equivalents as of August 31, 2025. Total assets reached $430.9 million, with liabilities at $199.9 million. Shareholders’ equity stood at $231.1 million, providing a solid base for future expansion plans.
The company also shared its outlook for fiscal 2026, forecasting sales in the range of $330 million to $334 million. Kura Sushi intends to open 16 additional restaurants in fiscal 2026, sustaining an annual growth rate above 20%. The company targets restaurant-level operating profit margins near 18% and aims to keep general and administrative expenses between 12.0% and 12.5% of sales.
Although the results were positive, the company continues to face challenges in boosting customer traffic and improving price/mix, as comparable restaurant sales grew by just 0.2% during the quarter. This suggests there is still potential to enhance customer engagement and refine menu pricing strategies.
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