Kura Sushi USA Incorporated Delivers Strong Fiscal Third Quarter 2026 Results

Despite the ongoing impact of tariffs on its cost of goods sold, Kura Sushi USA Incorporated demonstrated remarkable operational discipline and resilience in its fiscal third quarter 2026 results. During a recent conference call to discuss the company's earnings for the period, President and Chief Executive Officer Hajime Jimmy Uba highlighted significant progress towards achieving sustainable margin improvement and returning to the company's historical restaurant level operating profit margins of 20%.

Notably, Kura Sushi USA Incorporated managed to more than offset the impact of tariffs on its cost of goods sold as a percentage of sales, which was 200 basis points higher than last year. The company's operational discipline enabled it to improve its restaurant level operating profit margin by 90 basis points over the prior year to 19.1%. Additionally, adjusted EBITDA margins increased by 40 basis points to 7.7%, with adjusted EBITDA dollars growing more than 20% over the prior year.

The company's total sales for the fiscal third quarter were $85.9 million, reflecting a comparable sales decline of 0.4%. However, this was offset by positive price mix growth, which exceeded effective pricing growth during the period. Effective pricing for the quarter stood at 4.5%, while average guest growth outpaced pricing.

Kura Sushi USA Incorporated has been actively managing its cost structure to mitigate the impact of tariffs. The company's full-year COGS expectations remain approximately 30% as a percentage of sales, despite a sequential improvement of 20 basis points over Q2. Labor costs also improved by 250 basis points to 30.6%, driven by operational initiatives.

The company continues to expand its unit development with new restaurant openings. During the fiscal third quarter, Kura Sushi USA Incorporated opened seven new restaurants across various locations in California, Arizona, Florida, and Texas. Subsequent to quarter end, additional restaurants were opened in Tulsa, Oklahoma, Sunset Valley, Texas, and Charlotte, North Carolina.

Kura Sushi USA Incorporated has maintained a strong commitment to operational discipline, cost management, and unit development. The company's ability to navigate the challenges posed by tariffs while continuing to drive growth and profitability is a testament to its resilience and operational excellence.