Kura Sushi Profit Rises, Shares Trail Market

Kura Sushi USA reported a net profit of $0.05 per share for its third quarter of fiscal 2025, surpassing expectations and reversing a net loss from the prior year. Quarterly revenue rose 17% to approximately $74 million, fueled by new restaurant openings and menu price increases, despite a 2.1% decline in comparable restaurant sales due to falling traffic. The company raised its full-year sales guidance to $281 million and increased its target for new restaurant openings from 14 to 15. Operational efficiencies and supply chain improvements helped lower food and beverage costs as a percentage of sales, partially offsetting higher labor costs from wage increases. Management emphasized ongoing efforts in technology upgrades, market expansion, and strategic collaborations to drive growth. However, Kura Sushi shares have underperformed the broader market so far this year, maintaining investor attention on future earnings and expansion delivery.