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Investing.com - Benchmark raised its price target on Kura Sushi USA Inc . (NASDAQ:KRUS) to $102.00 from $85.00 on Tuesday, while maintaining a Buy rating on the stock. According to InvestingPro data, three analysts have recently revised their earnings estimates upward, with price targets ranging from $52 to $110.
The price target increase follows Kura Sushi’s fiscal third-quarter 2025 results released on Monday, which exceeded analyst expectations across key metrics. The company reported revenue of $74 million, surpassing the consensus estimate of $71.8 million. This performance contributes to the company’s impressive 21.37% year-over-year revenue growth, though InvestingPro analysis indicates the stock is currently trading above its Fair Value.
Kura Sushi posted restaurant-level operating margins of 18.2%, which was 50 basis points above consensus expectations. The company also reported adjusted earnings per share of $0.05 and adjusted EBITDA of $5.4 million, both exceeding consensus estimates of -$0.01 and $4.8 million, respectively.
Same-store sales declined 2.1%, in line with consensus estimates. Benchmark noted that management reported sequential acceleration in same-store sales throughout the quarter, which supported the company’s increased revenue guidance for fiscal year 2025.
Kura Sushi has updated its fiscal year 2025 guidance, now projecting annual revenue of $281 million, up from its previous forecast of $275 million to $279 million. The company also increased its projected net new restaurant openings to 15, compared to its prior guidance of 14 locations.
In other recent news, Kura Sushi USA Inc. reported a surprising profit for its fiscal third quarter, surpassing analyst expectations and adjusting its full-year revenue guidance upward. The company achieved a net income of $0.6 million, or $0.05 per diluted share, contrasting with a net loss of -$0.6 million, or -$0.05 per diluted share, in the same quarter the previous year. Revenue increased by 17.3% to $74 million, beating the consensus estimate of $72.13 million. Despite this growth, comparable restaurant sales decreased by 2.1% year-over-year, mainly due to a decline in customer traffic. Restaurant-level operating profit was $13.5 million, which is 18.2% of sales, down from 20.0% of sales in the previous year. Food and beverage costs improved to 28.3% of sales, benefiting from menu price increases and supply chain strategies. Kura Sushi also opened three new locations during the quarter and plans to open 15 new restaurants this fiscal year. In analyst news, Citi raised its price target for Kura Sushi from $85 to $96 while maintaining a Neutral rating, citing the positive impact of reservations and IP collaborations on sales.
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