Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Benchmark lowered its price target on Kura Sushi USA Inc. (NASDAQ:KRUS) to $85.00 from $102.00 on Monday, while maintaining a Buy rating on the stock. The stock, currently trading at $64.06, has seen its price fall significantly over the past three months, according to InvestingPro data.
The firm also removed Kura Sushi from its Best Ideas List, citing evidence of slowing customer traffic observed in Placer AI data for both the recently completed August quarter and the current quarter to date.
Despite the price target reduction, Benchmark remains "highly constructive" on the concept and management team as they work to establish the first sushi chain with a national footprint in the United States.
The analyst noted that industry-wide traffic challenges are particularly difficult for high-multiple restaurant stocks like Kura Sushi, even with the company’s "unicorn status" as a business growing units at approximately 20% with high-teens restaurant level margins.
The new $85 price target is based on a 30x multiple applied to Benchmark’s newly introduced fiscal year 2027 AEBITDA estimate of $31 million for the company.
In other recent news, Kura Sushi USA Inc. reported its Q3 2025 earnings, highlighting a significant increase in total sales. The company remains optimistic about its future growth, despite a slight dip in comparable restaurant sales. This optimism is supported by positive earnings per share and ambitious plans for fiscal 2026. The company’s strategic focus on innovation and market expansion was also emphasized during the earnings call. Analyst firms have yet to provide any recent upgrades or downgrades for Kura Sushi, leaving the market to interpret these results independently. The company’s stock experienced volatility in aftermarket trading, reflecting mixed investor sentiment. These developments are part of Kura Sushi’s ongoing efforts to strengthen its market position and enhance shareholder value.
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