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Here are 1-3 brief analogies for Kura Sushi USA (KRUS):

• It's like Chipotle for sushi, where your dishes arrive on a revolving conveyor belt.
• Think of it as Benihana, but for sushi and with the entertainment of a revolving food conveyor belt instead of a tableside chef.
• It's the Carvana of sushi restaurants, known for its unique, tech-enabled delivery model for a popular product.

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Kura Sushi USA (KRUS) provides the following major services:

• Restaurant Services: Operating technology-enabled Japanese restaurants that offer an engaging revolving sushi service model, known as the 'Kura Experience'.
• Japanese Cuisine: Serving a variety of traditional and modern Japanese food items, with a primary focus on sushi, within its restaurant locations.

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Kura Sushi USA (KRUS) operates Japanese restaurants and primarily sells its services directly to individual consumers rather than other businesses. Based on its business model, the company serves the following categories of customers:

• Families and Groups: Attracted to the engaging and interactive "revolving sushi service model," which provides a fun and unique dining experience suitable for family outings, children, and social gatherings.
• Younger Demographics and Tech-Savvy Individuals: Drawn by the "technology-enabled" aspects of the dining experience and the novelty of the revolving sushi belt, appealing to those seeking modern, interactive, and shareable culinary experiences.
• Casual Diners and Sushi Enthusiasts: Individuals looking for a distinctive, accessible, and high-quality Japanese dining experience in a casual and entertaining setting.

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Hajime "Jimmy" Uba, Chairman, President and Chief Executive Officer

Mr. Uba has served as President and Chief Executive Officer of Kura Sushi USA since 2008 and became a member of its board of directors in October 2017. He joined the company's parent, Kura Sushi, Inc., in 2000 and was selected in 2008 to establish and grow Kura Sushi USA. From 2004 to 2008, Mr. Uba headed operations for Kura Sushi, Inc., overseeing operations for Eastern and Western Japan and managing over 100 restaurants. He was responsible for the expansion of the Kura brand into Eastern Japan during this period. From 2000 to 2004, Mr. Uba spent three years as a restaurant manager and one year as a regional manager, during which Kura Sushi, Inc. expanded from approximately 30 to 180 restaurant locations. He holds a Bachelor of Arts degree from Kansai University in Japan.

Jeffrey J. Uttz, Chief Financial Officer and Treasurer

Mr. Uttz has served as Chief Financial Officer of Kura Sushi USA since October 2022. He brings significant public company experience, having previously served as Chief Financial Officer for Shake Shack Inc. for four years, where he was instrumental in preparing the company for its initial public offering (IPO) in 2015. At Shake Shack Inc., Mr. Uttz was involved in opening 45 new restaurants. Prior to his tenure at Shake Shack Inc., he served as Executive Vice President and Chief Financial Officer of Yard House USA, Inc. for 12 years, where he established the finance infrastructure to support the organization and was actively engaged in real estate transactions. He also held several financial leadership positions at CKE Restaurants Inc. Mr. Uttz began his career at the public accounting firm KPMG, LLP.

Sean Allameh, Chief Operating Officer

Mr. Allameh has served as Chief Operating Officer of Kura Sushi USA since July 2021. Prior to joining Kura, he served as Chief Operating Officer of Luna Grill from 2015, a California-based fast-casual concept, where he contributed to growing the brand from 16 to 49 locations. From 2013 to 2015, he was the Director of Operations at Umami Burger.

Robert Kluger, Chief Development Officer

Mr. Kluger is the Chief Development Officer and is responsible for driving the company's aggressive unit-growth strategy. Previously, he was tasked with growing Panda Express in traditional and non-traditional venues across the United States, during which Panda Express opened approximately 1,300 restaurants. Mr. Kluger started his career in field operations and as a corporate capital planner and financial analyst at The Vons Companies Inc.

Arlene Estrada Petokas, Chief People Officer

Ms. Petokas has served as Chief People Officer of Kura Sushi USA since October 2021.

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Key Risks to Kura Sushi USA (KRUS)

1. Worsening Comparable Sales Trends and Weak Demand: Kura Sushi USA has experienced a deceleration in comparable sales, indicating challenges in attracting repeat customers and increasing revenue at its existing restaurant locations. This trend suggests potential difficulties in driving same-store sales growth, with recent reports highlighting falling comparable sales and conservative revenue guidance.
2. Shrinking Operating Margins due to Rising Costs and Tariffs: The company's restaurant-level margins have been under pressure, falling to approximately 15% due to persistent ingredient cost inflation and the impact of tariffs. Kura Sushi USA has struggled to fully offset these rising costs, suggesting a limited ability to pass them on to consumers without negatively affecting customer traffic.
3. Significant Cash Burn and Limited Financial Resources for Expansion: Kura Sushi USA operates a capital-intensive business model, with substantial investments in opening new physical locations. This has resulted in significant cash burn and a negative free cash flow margin. The company's balance sheet, with limited cash, may not be sufficient to fund its aggressive expansion targets of opening a high percentage of new stores annually, potentially necessitating future capital raises that could dilute shareholder value.

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The addressable markets for Kura Sushi USA (KRUS) are primarily within the Japanese restaurant segment and the broader full-service restaurant industry, with a specific niche in the revolving sushi market.

• The North America Japanese restaurant market was valued at approximately USD 5.11 billion in 2024 and is projected to reach USD 6.59 billion by 2032, growing at a CAGR of 3.28%. The United States holds the largest share within this regional market. Another source forecasts the North America Japanese restaurant market to expand from USD 18.7 billion in 2025 to USD 30.6 billion by 2033, with a CAGR of 6.4%.
• In 2025, there were 22,902 Japanese restaurants operating in the United States.
• The global revolving sushi market size reached USD 3.65 billion in 2024 and is expected to grow to USD 4.91 billion by 2031, with an average annual compound growth rate of about 4.7%.
• The overall U.S. full-service restaurant market is a broader addressable market, predicted to be valued at US$ 371.9 billion in 2025 and to reach US$ 715.8 billion by 2032, with a compound annual growth rate (CAGR) of 12.7%. Another estimate values the United States full-service restaurant market at USD 362.15 billion in 2025, growing to USD 685.11 billion by 2031 at a CAGR of 11.07%.

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Kura Sushi USA (KRUS) is expected to drive future revenue growth over the next 2-3 years through a combination of aggressive unit expansion, efforts to achieve positive same-store sales growth, and enhanced customer engagement via technology and intellectual property (IP) collaborations.

Here are the key drivers of future revenue growth:

1. Aggressive New Restaurant Openings: Kura Sushi USA is focused on significant unit expansion. The company plans to open between 12 and 14 new restaurants in fiscal year 2024. Looking further ahead, Kura Sushi USA aims to open 14 new units in fiscal year 2025 and 16 new restaurants in fiscal year 2026, maintaining an annual unit growth rate above 20%. This expansion includes opening in new markets, such as Tulsa and Charlotte, alongside continued growth in existing areas.
2. Positive Same-Store Sales Growth through Traffic and Strategic Pricing: The company anticipates achieving positive same-store sales growth in fiscal year 2026, with management guiding for flat to slightly positive comparable sales for the full fiscal year. This growth is expected to be fueled by increased customer traffic and strategic menu price adjustments. For instance, Kura Sushi USA implemented a 3.5% menu price increase in November (Q1 fiscal 2026), which has led to improved traffic and price/mix trends continuing into the second fiscal quarter. In fiscal first quarter 2024, comparable sales grew by 3.8%, primarily driven by a 3.3% increase in traffic.
3. Enhanced Customer Engagement via Technology and IP Collaborations: Kura Sushi USA is leveraging technology and unique partnerships to attract and retain customers. A new reservation system is expected to reduce wait times and boost its rewards program, encouraging more frequent visits. The company is also focusing on new mobile phone ordering systems and a waitlist app to improve the customer experience and reduce guest attrition. Furthermore, IP collaborations (such as with Kirby, One Piece, and Sanrio) are considered potential avenues for additional revenue growth by driving customer interest and traffic. Updates to the rewards program and the reservation system are planned to be marketed to non-reward members in fiscal Q2 2026.

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Capital Expenditures

• For fiscal year 2026, Kura Sushi USA expects to open 16 new units, maintaining an annual unit growth rate exceeding 20%, with average net capital expenditures per unit anticipated to be approximately $2.5 million.
• During fiscal year 2025, the company opened a record 15 new restaurant locations.
• In the first quarter of fiscal year 2026, four new restaurants were opened, and ten units were under construction, contributing to the target of 16 new openings for the full fiscal year.

Outbound Investments

• Kura Sushi USA has not made any investments or acquisitions.