Kura Sushi USA, Inc. (NASDAQ: KRUS) is a technology-enabled Japanese restaurant chain known for its unique revolving sushi model. The company operates 78 locations across 21 states and the District of Columbia and focuses on offering an authentic Japanese dining experience.

For the fiscal third quarter ended May 31, 2025, Kura Sushi reported total sales of $74.0 million, a 17.3% increase from the $63.1 million recorded in the same period in 2024. However, comparable restaurant sales fell by 2.1%, attributed to a negative traffic impact of 2.9% and a price/mix increase of 0.8%.

The company’s operating loss narrowed to $0.2 million from an operating loss of $1.2 million in the third quarter of the prior year. Kura Sushi generated net income of $0.6 million, or $0.05 per diluted share, reversing from a net loss of $0.6 million, or $(0.05) per diluted share, year-over-year.

Adjusted net income also reached $0.6 million, or $0.05 per diluted share, compared to an adjusted net income of $4,000, or $0.00 per diluted share, in the third quarter of 2024. Restaurant-level operating profit stood at $13.5 million, accounting for 18.2% of sales, although it declined from a profit of $12.6 million and 20.0% of sales in the same quarter the previous year.

Adjusted EBITDA increased to $5.4 million from $4.5 million in the third quarter of 2024, showing a stronger operational capacity. The fiscal year 2025 guidance indicates total sales are projected at approximately $281 million, with an expected opening of 15 new restaurants, maintaining a unit growth rate above 20%.

Kura Sushi’s food and beverage costs as a percentage of sales improved to 28.3% from 29.2% year-over-year. Labor and related costs increased to 33.1% of sales, up from 32.6%. Occupancy expenses rose to $5.5 million, compared to $4.3 million in the prior year quarter, due to the opening of 13 new restaurants since the same time last year.

General and administrative expenses decreased to $8.7 million from $8.9 million, with expenses as a percentage of sales improving to 11.8% from 14.0%. Kura Sushi opened three new locations during the quarter, complemented by two additional openings in June 2025.

The company’s cash and cash equivalents totaled $47.1 million as of May 31, 2025, down from $51.0 million at the end of the prior fiscal year. Total assets increased to $419.4 million from $328.5 million, while total liabilities rose to $192.4 million from $166.0 million. Total stockholders’ equity stood at $227.0 million, compared to $162.5 million in the prior year.