Q2 2026 Kura Sushi USA Inc Earnings Call Transcript
Key Points
- Kura Sushi USA Inc (KRUS) reported strong fiscal second-quarter sales of $80 million, representing an 8.6% growth in comparable sales.
- The company achieved a significant improvement in labor costs, reducing them from 34.8% to 30.7% of sales, driven by operational efficiencies and better sales leverage.
- Kura Sushi USA Inc (KRUS) opened five new locations, with plans to open a total of 16 new units in fiscal 2026, maintaining a unit growth rate above 20%.
- The company's marketing strategy, including successful IP collaborations with brands like Nintendo, has been effective in driving customer engagement and sales.
- Kura Sushi USA Inc (KRUS) has no debt and holds $69.7 million in cash, cash equivalents, and investments, providing a strong financial position for future growth.
- The cost of goods sold increased to 30.4% of sales from 28.7% in the prior year, due to tariffs on imported ingredients and commodity inflation.
- Despite improvements, the company reported a net loss of $1.7 million or negative $0.14 per share, although this was an improvement from the previous year's loss.
- Occupancy and related expenses slightly increased to 8.1% of sales compared to 7.9% in the prior year quarter.
- General and administrative expenses, although reduced, still accounted for 13.7% of sales, indicating room for further efficiency improvements.
- The company faces ongoing litigation expenses, particularly in California, which remain a financial burden despite efforts to minimize them.
Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Kura Sushi USA, Inc. fiscal second-quarter 2026 earnings conference call. (Operator Instructions) Please note that this call is being recorded.
On the call today, we have Hajime Jimmy Uba, President and Chief Executive Officer; Jeff Uttz, Chief Financial Officer; and Benjamin Porten, Senior Vice President, Investor Relations and System Development.
And now I would like to turn the call over to Mr. Porten. Please go ahead.
Thank you, operator. Good afternoon, everyone, and thank you all for joining. By now, everyone should have access to our fiscal second-quarter 2026 earnings release. It can be found at www.kurasushi.com in the Investor Relations section. A copy of the earnings release has also been included in the 8-K we submitted to the SEC.
Before we begin our formal remarks, I
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