Kura Sushi USA, Inc. reported fiscal first‑quarter 2026 results on January 7, 2026. Total revenue reached $73.5 million, a 14.5 % year‑over‑year increase from $64.5 million in the same period last year, but still $0.38 million below the $73.88 million consensus estimate. Net income was a loss of $0.25 per diluted share, widening the quarterly loss compared with the $-0.17 per share consensus.
The revenue miss was driven by margin headwinds that pushed costs higher. Tariff‑related increases in ingredient prices and higher labor costs eroded the 15.1 % restaurant‑level operating margin, which fell from 18.2 % in Q1 2025. The company’s mix of new and existing restaurants also contributed to a 2.5 % decline in comparable sales, offsetting the top‑line growth.
The wider net loss reflects the combined impact of higher operating expenses and a 2.5 % drop in same‑store sales. While the company maintained a 15.1 % operating margin, the loss per share widened because the company incurred additional one‑time costs related to expansion and capital expenditures for new units. Management noted that the loss is a short‑term effect of investing in growth.
Kura Sushi reiterated its fiscal‑2026 guidance, projecting total sales of $330 million to $334 million and the opening of 16 new restaurants. The company also reaffirmed its goal of keeping general‑and‑administrative expenses at 12 % to 12.5 % of sales and targeting a restaurant‑level operating margin of approximately 18 %. The guidance signals confidence that the expansion plan will be supported by cost discipline and that the company can return to profitability as new units mature.
CEO Hajime Uba emphasized that aggressive cost management has already lowered G&A and labor as a percentage of sales, and that the company is on track to achieve the 16‑unit target. CFO Jeff Uttz highlighted the company’s focus on maintaining a 12 % to 12.5 % G&A ratio and an 18 % operating margin, underscoring the management’s belief that the current loss is a temporary investment in growth.
Investors reacted cautiously to the earnings, with the market focusing on the EPS miss and the decline in comparable sales. The company’s reiterated guidance and cost‑control progress were viewed as positive, but the wider loss and headwinds from tariffs and sales deleverage tempered enthusiasm.
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