Kura Sushi USA, Inc. (NASDAQ: KRUS), based in Irvine, California, reported Kura Sushi fiscal third quarter results on July 7, saying total sales rose to $85.9 million for the quarter ended May 31, 2026, from $74 million a year earlier, while comparable restaurant sales decreased 0.4%.
Kura Sushi operates revolving sushi restaurants in the United States and reported 91 restaurants at the end of the period, compared with 76 a year earlier. For restaurant operators, total sales can rise as new locations open even when comparable restaurant sales decline, because comparable sales exclude restaurants that have not met the company’s operating-period threshold.
#Kura Sushi Q3 Sales Rose While Comparable Sales Fell
Comparable restaurant sales fell 0.4% in the fiscal third quarter, compared with a 2.1% decline in the same quarter of 2025. The company said the latest comparable sales figure reflected negative traffic of 5.1%, partly offset by price and mix of 4.7%.
Operating loss was $39,000, compared with an operating loss of $162,000 in the third quarter of 2025. Net income was $0.4 million, or $0.03 per diluted share, down from net income of $0.6 million, or $0.05 per diluted share, a year earlier.
Restaurant-level operating profit, a non-GAAP measure, was $16.4 million, or 19.1% of sales. That compared with $13.5 million, or 18.2% of sales, in the prior-year quarter.
Adjusted EBITDA, also a non-GAAP measure, was $6.6 million, compared with $5.4 million in the third quarter of 2025. Adjusted EBITDA margin was 7.7%, compared with 7.3% a year earlier.
#Tariffs Lifted Food Costs As Labor Costs Declined
Food and beverage costs were 30.2% of sales in the quarter, compared with 28.3% a year earlier. Kura Sushi attributed the increase primarily to tariffs on imported ingredients, partly offset by menu price increases.
Labor and related costs were 30.6% of sales, down from 33.1% in the third quarter of 2025. The company attributed the decline primarily to operational efficiencies and pricing, partly offset by low-single-digit wage inflation.
“Despite our costs of goods sold as a percentage of sales being 200 basis points higher than last year due to tariffs, our operational discipline allowed us to more than offset this impact and improve our restaurant-level operating profit margin by 90 basis points over the prior year to 19.1%,” Hajime Uba, President and Chief Executive Officer, Kura Sushi, said in the release.
Occupancy and related expenses increased to $6.7 million from $5.5 million a year earlier. Kura Sushi said the increase was primarily due to 15 new restaurants opening since the third quarter of 2025.
General and administrative expenses rose to $10.2 million from $8.7 million. The company said the increase included $1.1 million in compensation-related costs, $0.2 million in travel expenses and $0.2 million in other net expenses.
#Kura Sushi Expects 16 Restaurant Openings In Fiscal 2026
Kura Sushi opened seven restaurants during the fiscal third quarter, with locations in Orange, California; Goodyear, Arizona; Union City, California; Wellington, Florida; Temecula, California; Denton, Texas; and San Diego, California. After May 31, it opened restaurants in Tulsa, Oklahoma; Sunset Valley, Texas; and Charlotte, North Carolina.
For fiscal 2026, the company updated and reiterated guidance for total sales of $330.5 million to $331.5 million. It also said it expects 16 new restaurants for the year, maintaining annual unit growth above 20%, with average net capital expenditures per unit of about $2.5 million.
Kura Sushi projected general and administrative expenses of about 12% of sales, excluding litigation expenses. The company also projected restaurant-level operating profit margin of about 18.5% for the fiscal year.
The company’s forward-looking statements are subject to execution and cost risks. Kura Sushi cited factors including comparable restaurant sales, restaurant openings, expansion in existing and new markets, competition, supplier reliance, food and supply costs, tariffs, wage inflation, labor availability, food safety, consumer preferences, technology systems and broader economic conditions.
Management said the company is focused on margin improvement while continuing its restaurant development plan. That outlook depends on the pace of new openings, traffic trends, imported ingredient costs, labor costs and the company’s ability to manage expenses as it expands.