Kura Sushi USA Inc. Class A Common Stock (KRUS)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I begin with earning power, not stories. Kura operates technology-enabled revolving sushi restaurants, and revenue grew from $187.4M in fiscal year 2023 (ended 2023-08-31) to $237.9M in fiscal year 2024 (ended 2024-08-31) and $282.8M in fiscal year 2025 (ended 2025-08-31). Profits did not follow: net income went from $1.5M in fiscal year 2023 to -$8.8M in fiscal year 2024 and -$1.9M in fiscal year 2025. FairStock's computed Lynch category is TURNAROUND — loss in the latest year after earlier profits. Recent filed figures show fiscal Q3 2026 (quarter ended 2026-05-31) revenue of $85.9M and net income of $423,000, or $0.03 diluted EPS, better than fiscal Q1 2026 (quarter ended 2025-11-30) net loss of $3.1M and fiscal Q2 2026 (quarter ended 2026-02-28) net loss of $1.7M, but below fiscal Q3 2025 (quarter ended 2025-05-31) net income of $565,000 despite higher revenue. Sales are growing, but margins are thin and inconsistent. The moat is questionable: revolving sushi and technology may draw traffic, but restaurants have low switching costs and competitors can copy formats. Financial health gives me pause. Trailing free cash flow is -$27.1M, a FCF yield of -5.6% on the 2026-10-13 close. FairStock's EV/EBITDA is 45.14, P/B is 2.06, and P/E is -230.35. Altman Z-Score is 1.30, D/E is 0.90, and Piotroski is 6/9. At $39.16, the price assumes a successful turnaround. I would need durable positive net income and positive free cash flow before calling it cheap.

In plain English: Kura Sushi runs technology-enabled Japanese revolving sushi restaurants in the United States. Sales are growing, but the company has mostly lost money and burned cash, so the business looks weak today. At the current price, the market is paying a lot for a hoped-for turnaround.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-31) · fiscal Q2 2026 10-Q (period ended 2026-02-28) · fiscal Q1 2026 10-Q (period ended 2025-11-30) · fiscal Q3 2025 10-Q (period ended 2025-05-31) · FY2025 10-K (period ended 2025-08-31) · FY2024 10-K (period ended 2024-08-31) · FY2023 10-K (period ended 2023-08-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer