Kura Sushi Reports 17% Sales Growth, Exceeds Q3 Targets

Kura Sushi (KRUS) reported strong third-quarter results with revenue growing 17.2% to $74 million, surpassing expectations despite a 2.1% decline in comparable restaurant sales. The company improved its operating margin and narrowed its operating loss, achieving adjusted net income of $0.05 per share. Barclays raised its target price to $75, while the average analyst price target stands at $78.44, with a consensus brokerage rating of 'Outperform.' GuruFocus estimates a fair value price of $117.53, suggesting significant upside potential from the current stock price near $86.78. Kura Sushi's growth strategy includes opening new locations—15 planned in fiscal 2025—and enhancing operational efficiency through price adjustments and supply chain improvements, helping it manage inflationary pressures. Despite some traffic challenges, strong financial management and expansion efforts position Kura Sushi for continued growth in the competitive sushi restaurant market.