Kura Sushi USA — Fiscal Year 2026 Earnings Summary

Financial Performance

• Total sales for the fiscal fourth quarter of 2026 were $88.9 million, up from $79.4 million in the same period of 2025.
• Comparable restaurant sales decreased 5.7% in the fourth quarter of 2026 compared to 2025, driven by negative traffic of 11.5% offset by a price/mix increase of 5.8%.
• Operating loss for the fourth quarter was $0.6 million, compared to operating income of $1.5 million in 2025.
• Net loss for the fourth quarter was $0.3 million ($0.02 per diluted share), compared to net income of $2.3 million ($0.18 per diluted share) in 2025.
• Adjusted net income for the fourth quarter was $0.9 million ($0.08 per diluted share), down from $2.5 million ($0.20 per diluted share) in 2025.
• Restaurant-level operating profit for the fourth quarter was $17.0 million (19.1% of sales), compared to $15.7 million (19.8% of sales) in 2025.
• Adjusted EBITDA for the fourth quarter was $7.7 million, up from $7.4 million in 2025.
• For the full fiscal year 2026, total sales were $328.3 million, up from $282.8 million in 2025.
• Full-year comparable restaurant sales decreased 0.4% in 2026 compared to 2025, driven by negative traffic of 4.3% offset by a price/mix increase of 3.9%.
• Average unit volumes for fiscal year 2026 were $3.8 million, down from $3.9 million in 2025.
• Full-year operating loss was $6.6 million, compared to an operating loss of $4.8 million in 2025.
• Full-year net loss was $4.6 million ($0.38 per diluted share), compared to a net loss of $1.9 million ($0.16 per diluted share) in 2025.
• Full-year adjusted net loss was $2.0 million ($0.16 per diluted share), compared to adjusted net income of $0.4 million ($0.03 per diluted share) in 2025.
• Full-year restaurant-level operating profit was $59.0 million (18.0% of sales), compared to $52.1 million (18.4% of sales) in 2025.
• Full-year Adjusted EBITDA was $22.2 million, up from $19.1 million in 2025.
• Food and beverage costs as a percentage of sales were 29.7% in the fourth quarter of 2026, up from 28.4% in 2025.
• Labor and related costs as a percentage of sales were 30.4% in the fourth quarter of 2026, down from 31.1% in 2025.
• General and administrative expenses were $9.9 million (11.2% of sales) in the fourth quarter of 2026, compared to $9.3 million (11.7% of sales) in 2025.
• Full-year general and administrative expenses were $40.6 million (12.4% of sales), compared to $37.7 million (13.3% of sales) in 2025.
• Full-year adjusted general and administrative expenses were $39.2 million (11.9% of sales), compared to $35.4 million (12.5% of sales) in 2025.
• Impairment and disposal of long-lived assets were $1.2 million in the fourth quarter and full year of 2026, compared to $0 in 2025.
• Cash and cash equivalents were $28.4 million as of August 31, 2026, down from $47.5 million as of August 31, 2025.

Guidance and Future Outlook

• Fiscal Year 2027 total sales are projected to be between $376 million and $381 million.
• The company plans to open 17 new restaurants in fiscal year 2027, with average net capital expenditures per unit of approximately $2.6 million.
• General and administrative expenses for fiscal year 2027 are expected to be approximately 11.5% of sales.
• Restaurant-level operating profit margins for fiscal year 2027 are targeted at approximately 19.0%.

Business Segments and Product Lines

• Four new restaurants opened during the fiscal fourth quarter of 2026 in Tulsa, Oklahoma; Sunset Valley, Texas; Charlotte, North Carolina; and Parsippany, New Jersey.
• Three additional restaurants opened subsequent to August 31, 2026, in Glen Allen, Virginia; West Des Moines, Iowa; and Greenwood Village, Colorado.
• The company operates 98 locations across 25 U.S. states and Washington DC as of the reporting date.

Market and Competitive Landscape

• Tariffs increased costs of goods sold and other costs by 180 basis points in fiscal year 2026.
• The company offset tariff increases through labor leverage of 190 basis points and G&A leverage of 90 basis points compared to fiscal year 2025.
• Occupancy and related expenses increased to $6.9 million in the fourth quarter of 2026 from $5.6 million in 2025, primarily due to 16 new restaurants opened since the prior year quarter.
• Depreciation and amortization expense increased to $4.9 million in the fourth quarter of 2026 from $3.8 million in 2025, driven by the opening of 16 new restaurants.
• Other costs as a percentage of sales decreased to 14.6% in the fourth quarter of 2026 from 15.0% in 2025, primarily due to a one-time tariff refund benefit of approximately $0.5 million.

Risks and Challenges

• Comparable restaurant sales declined due to negative traffic trends in both the fourth quarter and full fiscal year 2026.
• Food and beverage costs increased due to tariffs on imported ingredients.
• The company incurred impairment and disposal charges of $1.2 million in 2026 related to restaurant performance and equipment disposal.
• General and administrative expenses increased due to compensation-related costs and other net expenses, partially offset by a decrease in litigation costs.
• Forward-looking statements note risks including macroeconomic conditions, competition, food safety concerns, labor availability, wage inflation, technology failures, and cybersecurity breaches.

Management Commentary and Tone

• Hajime Uba, President, CEO, and CFO, expressed pride in protecting margins despite tariffs and consumer headwinds.
• Management highlighted that technological innovation drove labor leverage, allowing the company to offset tariff-induced cost increases.
• Management noted a continued commitment to G&A leverage, reflected in the 90 basis point improvement in G&A expenses as a percentage of sales.
• The company successfully grew Adjusted EBITDA margin and dollars compared to fiscal year 2025.

Other Key Points

• A conference call and webcast were scheduled for November 5, 2026, at 5:00 p.m. EDT to discuss results.
• The company is a technology-enabled Japanese restaurant concept established in 2008 as a subsidiary of Kura Sushi, Inc., which has over 700 restaurants internationally.
• Non-GAAP measures including Adjusted Net Income, Adjusted EBITDA, Restaurant-level Operating Profit, and Adjusted General and Administrative Expenses were presented alongside GAAP results.
• The company reported a one-time tariff refund benefit of approximately $0.5 million in the fourth quarter of 2026.