We recently compiled a list of the 10 High Growth Restaurant Stocks For 2025. In this article, we are going to take a look at where Kura Sushi USA Inc. (NASDAQ:KRUS) stands against the other high growth restaurant stocks.

Morgan Stanley recently published a report on the restaurant industry, suggesting that the tough environment that the industry is currently facing may ease out in 2025, though only modestly. Restaurants will have to continue working on providing value meals to consumers who continue to struggle to balance their income and expenses.

A balanced job market could help keep labor costs steady. However, a political campaign against immigration could be a potential headwind for the industry. A growing emphasis on robotics to improve efficiency and customer service could also play a key role in the industry’s development this year, though it is too early to determine the financial implications of these moves.

We decided to shortlist a few stocks that we believe could benefit from an improving industry environment in 2025. To come up with the list of 10 restaurant stocks with a high growth rate, we only considered stocks that have grown by more than 15% in the last 5 years or since IPO and have a market cap of at least $1 billion.

A close-up of a sushi chef, displaying his care and attention to detail in making a dish.

Kura Sushi USA Inc. (NASDAQ:KRUS)

Kura Sushi USA Inc. operates a chain of tech-driven Japanese restaurants that offers a variety of Japanese dishes, Sushi, and desserts. Despite having a market cap of just under a billion dollars, we included the stock in our list because it spent most of the last year trading above our $1 billion threshold.

As is often the case with such companies, Kara raised $65 million in November after which the stock has struggled to continue its move up. It is also down 15% YTD, offering a good opportunity for people searching for small caps to rotate out of large caps.

In fiscal 25, the company intends to open 14 new stores to add to its existing 64 locations. The cash infusion through November’s stock offering allows the company to continue expanding locations at 22% for a further 2 years. The company is, however, struggling to keep up with same-store sales in a tough environment. On top of that, it is also dealing with higher labor costs. An operational review that has already been concluded should address some of these issues after which the finances could start looking really pretty. At current price levels, it is a bet worth taking.

Overall KRUS ranks 5th on our list of the high growth restaurant stocks for 2025. While we acknowledge the potential of KRUS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as KRUS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article was originally published at Insider Monkey.