Gas prices and soccer steal traffic from Kura Sushi
The company dimmed its outlook for the year as gas prices, the World Cup, and construction delays slow revenue growth.
July 8, 2026
High gas prices across the U.S. kept many customers from visiting Kura Sushi this spring.
Traffic at the conveyor-belt sushi chain fell 5% during the three months ended May 31, resulting in a same-store sales decline of 0.4%. Higher menu prices made up most of the difference.
Executives blamed gas prices, which peaked at more than $4.50 nationally in May due to the Iran war and lockdown of the Strait of Hormuz. Gas prices were especially high in California, where many of Kura’s restaurants are located.
Traffic has begun to bounce back as gas prices have eased more recently, executives said. But some of the improvement has been offset by the World Cup, which has been competing for consumers’ attention, they said.
All of those headwinds led Kura to downgrade its revenue outlook for its fiscal year, which ends in August. It’s now expecting total sales between $330.5 million and $331.5 million, down from $333 million and $335 million previously. It is still forecasting positive same-store sales for the year.
Kura’s revenue struggles were contrasted by improvements on the bottom line. Its restaurant-level operating profit increased by 90 basis points, to 19.1%, even though its cost of goods were 200 basis points higher.
Those costs were offset by more efficient operations and labor. Labor costs as a percentage of sales improved by 210 basis points, to 30.6%.
Kura is now expecting restaurant-level profits of 18.5% for the year, the high end of its previous range.
Construction snafus aside, Kura opened seven new restaurants in the quarter and expects to finish the fiscal year with a total of 16 new locations. It had a total of 91 restaurants at the end of the quarter.
Total sales for the quarter were $85.9 million, up from $74 million for the same period a year ago. Kura generated an operating loss of $39,000, versus a loss of $162,000 last year. Adjusted earnings before interest, taxes, depreciation, and amortization improved 40 basis points, to $6.6 million.
Kura’s stock fell sharply in after hours trading Tuesday, but bounced back and by Wednesday morning was down less than 1%.
About the Author
Joe Guszkowski
Senior editor, Restaurant Business
Joe Guszkowski is a senior editor with Restaurant Business covering technology and casual-dining chains.
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