KURA SUSHI USA, INC. Q2 FY2025 earnings call

• New restaurant openings: Eleven units open to date, with three opened during Q2 (Berkeley, California; Fort Worth, Texas; Plymouth, New Jersey) and subsequent openings post-quarter. Bakersfield is performing well and has led to reevaluation of viable markets. • IP pipeline: Fiscal 2026 will have seven or eight IP collaborations, a record. Food-focused marketing campaigns to begin in May. • System development: Rollout of new auto panel software proceeding, new order planning software with redesigned Mr. Freshdom, improvements to BigQuery system, and reservation system testing with positive guest reception.

Total sales for the fiscal second quarter were $64.9 million. Comparable sales growth was negative 5.3% due to an under mix of 3.2% offset by negative traffic of 8.5%. Cost of goods sold as a percentage of sales improved by 90 basis points. Labor as a percentage of sales increased by 180 basis points. Restaurant-level operating profit margin was 17.3% compared to 19.6% in the prior year quarter.

• Expect total sales for fiscal 2025 to be between $275 million and $279 million. • Expect to open 14 units, maintaining an annual unit growth rate above 20%, with average net capital expenditures per unit of approximately $2.5 million. • Expect general and administrative expenses as a percentage of sales to be approximately 13.5%.

• Weather impact: Inclement weather in January and February (wildfires, flooding, cold waves) acted as a 400 to 500 basis point headwind. • Tariffs: Uncertainty due to tariff announcements affecting consumer confidence and potential impact on costs and supply chain. • Consumer behavior: Uncertainty regarding changes in consumer behavior affecting sales performance.

Q: About performance through the quarter and weather impact.

A: Jeff Uttz said performance was smooth starting in March, but tariffs caused uncertainty. Up until March, performance was good despite January-February weather issues.

Q: On IP partnerships and timing.

A: Jeff Uttz said IP partnerships start in May, with several planned for fiscal 2026 including hits like Steven Slayer, One Piece, and Kirby from Nintendo.

Q: On wage pressure and geographies.

A: Jeff Uttz said high single-digit wage pressure is across markets due to statutory minimum wages and competition, not specific to California or FAST Act.