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KURA SUSHI USA, INC.

CIK: 17721772 Annual ReportsLatest: 2026-11-05
Revenue: $328,276,000Net Income: -$4,645,000Source 10-K
Disclaimer: AI-assisted summary of SEC Form 10-K filings. Not official company content and not investment, legal, accounting, or tax advice. See full disclaimer here.

10-K / November 5, 2026

Revenue:$328,276,000
Income:-$4,645,000

10-K / November 8, 2024

Revenue:$237,860,000
Income:-$8,804,000

10-K / November 5, 2026

Kura Sushi USA, Inc.

Business model and offering

  • Technology-enabled Japanese restaurant concept delivering the “Kura Experience.”
  • Core service includes a revolving conveyor belt (express belt) with dishes passing guests, robots that deliver drinks and condiments, and tableside touch screens for ordering.
  • Menu focuses on authentic Japanese cuisine, freshness, and high-quality ingredients; the company states food is prepared without artificial sweeteners, colorings, preservatives, or additives.
  • Dining experience features a broad selection of small plates (about 130 items), rotating anime videos, and Bikkura-Pon reward machines that dispense toys when guests reach dining milestones.
  • Proprietary kitchen systems (sushi robots, vinegar mixing machines, in-house rice washing) support operations and enable data collection on guest preferences and consumption.
  • Pricing model: all belt plates are the same price within a restaurant; average plate price is around $3.95.
  • Strategy combines high-volume restaurant economics with a flexible real estate model and data-driven operations to drive traffic and profitability.

Company and location details

  • Headquarters: Irvine, California.
  • Founded/initial development: Established in 2008 as a subsidiary of Kura Sushi, Inc. (Kura Japan); first U.S. restaurant opened in Irvine in 2009.
  • Fiscal year: September 1 to August 31.
  • Public disclosures: referenced in a Form 10-K filing with the SEC.

Restaurant footprint and formats

  • As of August 31, 2026: 95 restaurants in 24 U.S. states and Washington, D.C.
  • Formats: mix of in-line and end-cap locations in retail centers.
  • Average restaurant size: approximately 3,500 square feet (range 1,600 to 7,920 square feet).
  • Average seating capacity: about 110 guests.
  • Real estate: leases for restaurants and corporate offices; long-term non-cancelable leases typically around 20 years plus extensions.
  • New restaurant economics: approximate cash build-out cost of around $2.4 million per new restaurant in fiscal year 2026 (net of landlord improvements; varies by site).

Growth strategy and expansion

  • Expansion in both existing and new markets, supported by an ongoing development pipeline.
  • Remote monitoring capability: operations team can monitor restaurants in real time from headquarters.
  • Site selection: data analytics identify target trade areas, with reviews of projected profitability and potential cannibalization before site commitments.
  • Market potential: long-term opportunity cited as over 290 restaurants in the United States, subject to market conditions and execution.

Operations, management, and workforce

  • Employees: approximately 4,400 total as of August 31, 2026; about 230 exempt, remainder non-exempt.
  • Management structure: restaurant managers supported by multiple assistant managers and larger teams at each location; approximately 20–30 cameras per restaurant for real-time monitoring.
  • Training: structured onboarding and ongoing training; opening teams generally on-site from two weeks before opening to six weeks after opening.
  • Labor practices: emphasis on pay equity analyses, internal and external audits, and a culture-focused workplace; no unionized workforce as of the filing date.

Supply chain and procurement

  • Dependence on a small number of key suppliers and major distributors:
    • JFC International Inc. (subsidiary of Kikkoman): supplied 53%, 58%, and 55% of total food and beverage costs in fiscal years 2026, 2025, and 2024, respectively.
    • Mutual Trading Co., Inc.: supplied 40%, 32%, and 34% of total food and beverage costs in fiscal years 2026, 2025, and 2024, respectively.
  • No hedging of commodity prices; some bulk purchases are made at fixed prices for a portion of annual purchases.
  • Supply disruption or inability to source comparable quality at similar prices could affect operations.

Intellectual property and licensing

  • Core IP is licensed from Kura Japan, including brand names (e.g., “Kura Sushi,” “Mr. Fresh,” “Kura Revolving Sushi Bar”), related patents, and operational know-how.
  • Exclusive license agreement with Kura Japan; continuation of the license depends on mutual agreement and is subject to termination risk.
  • Kura Japan’s ownership and IP rights are central to branding and operational methods; termination or limitation of the license could adversely affect the business.
  • The company may face IP litigation related to licensed IP or third-party rights; disputes could be costly or affect operations.

Ownership and corporate structure

  • Kura Japan is the majority stockholder and, as of the report date, owned 67% of the combined voting power of the company’s equity interests through Class A and Class B shares.
  • The company is a “controlled company” under Nasdaq rules and is therefore exempt from certain governance requirements.
  • Share structure:
    • Class A common stock: one vote per share; outstanding Class A shares: 11,153,615 (as of Aug 31, 2026).
    • Class B common stock: ten votes per share; outstanding Class B shares: 1,000,050 (as of Aug 31, 2026).
  • Equity-related items: 669,504 Class A shares issuable upon exercise of stock options and vesting of RSUs/PSUs; 1,350,000 Class A shares reserved for issuance under the 2018 Incentive Compensation Plan (Form S-8).
  • Corporate governance: exclusive forum provisions designate the Delaware Court of Chancery for many disputes, with federal and securities act exceptions; this structure has implications for stockholders.

Financial posture

  • Credit facility: revolving credit facility with Kura Japan available up to $45.0 million; as of August 31, 2026, no outstanding balance and full availability ($45.0 million).
  • Financial flexibility: facility permits additional indebtedness subject to covenants that may affect liquidity and strategic actions.
  • Tax attributes: federal net operating losses of approximately $41.7 million and federal tax credits of approximately $12.9 million as of August 31, 2026; a full valuation allowance was recorded. Limitations under Sections 382/383 of the Internal Revenue Code may apply if an ownership change occurs.
  • Dividends: the company does not intend to pay cash dividends in the foreseeable future.
  • Equity market considerations: exposure to analyst coverage, potential volatility, and possible dilution from future issuances.

Customer reach and revenue indicators

  • Average plate price: about $3.95.
  • Restaurant footprint: 95 restaurants with average seating around 110 per location.
  • Growth expectations and expansion potential remain tied to market conditions and execution.

Regulatory, safety, and data security

  • Food safety: HACCP system in place, time limits on items on the conveyor belt, third-party internal audits, and supplier vetting for safety and quality.
  • Regulatory exposure: operations are subject to federal, state, and local regulations covering health, safety, environmental matters, labeling, accessibility, taxation, immigration, and other areas.
  • Data security and privacy: reliance on both in-house and third-party IT systems requires active cybersecurity risk management; breaches or failures could affect guests and operations.