Shares of Kura Sushi USA, Inc. (KRUS) plunged 6.52% in pre-market trading on Thursday following a disappointing second-quarter earnings report and a significant price target cut by Citigroup. The Japanese-inspired restaurant chain faced headwinds as it struggles to maintain profitability amid expansion efforts.
Kura Sushi's Q2 2025 financial results painted a mixed picture. While the company reported a 13% year-over-year increase in revenue to $64.9 million, its bottom line took a substantial hit. The net loss widened by 279% compared to the same period last year, resulting in a loss per share of $0.31. This figure missed analyst expectations by a staggering 121%, raising concerns about the company's ability to manage costs effectively during its growth phase.
Adding to investor woes, Citigroup cut its price target for Kura Sushi USA from $71 to $47, signaling reduced confidence in the company's near-term prospects. This adjustment, combined with the earnings miss, likely contributed to the sharp sell-off in pre-market trading. As Kura Sushi continues to navigate challenges in the competitive restaurant industry, investors will be closely monitoring its ability to balance expansion with profitability in the coming quarters.
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