Kura Sushi USA, Inc. reported continued top-line growth for its fiscal third quarter ended May 31, 2026, driven by new restaurant openings and menu price increases, but the company continued to face pressure from tariffs, commodity inflation and softer consumer traffic. For the three months ended May 31, 2026, the revolving sushi restaurant operator generated sales of $85.9 million, up 16.2% from $74.0 million in the same period a year earlier. The increase was primarily attributed to sales from 15 restaurants opened after May 31, 2025, along with menu price increases. Comparable restaurant sales, however, declined 0.4% in the quarter, as a 4.7% benefit from price and mix was offset by a 5.1% decline in traffic. The company said lower traffic reflected reduced consumer spending in the current macroeconomic environment. Despite the revenue growth, profitability remained modest. Kura Sushi posted an operating loss of $39,000 in the quarter, narrower than the $162,000 operating loss recorded a year earlier. Interest income fell to $528,000 from $812,000, which the company attributed to lower interest rates and reduced investments as cash was withdrawn for operating needs. After $49,000 of income tax expense, net income was $423,000, down from $565,000 in the prior-year quarter. Restaurant-level cost trends showed the impact of expansion and inflation. Food and beverage costs rose 23.8% to $25.9 million and increased to 30.2% of sales from 28.3% a year earlier, primarily because of tariffs on imported ingredients, partly offset by menu price increases. Labor and related costs increased 7.4% to $26.3 million, but improved as a percentage of sales to 30.6% from 33.1%, helped by operational initiatives such as reservation systems and scheduling improvements, as well as menu pricing. Occupancy costs rose 20.5% to $6.7 million, depreciation and amortization rose 22.8% to $4.2 million, and other restaurant costs increased 15.4% to $12.6 million. General and administrative expenses increased 16.6% to $10.2 million, mainly from $1.1 million in higher compensation-related costs, $0.2 million in travel expenses and $0.2 million of other net expenses. For the nine months ended May 31, 2026, Kura Sushi reported sales of $239.4 million, up 17.7% from $203.3 million in the comparable 2025 period. Comparable restaurant sales increased 1.8% for the nine-month period, reflecting a 3.1% price/mix benefit partially offset by a 1.3% decline in traffic. The company reported a nine-month operating loss of $5.9 million, slightly improved from a $6.2 million operating loss a year earlier. Net loss for the nine-month period was $4.3 million, compared with a net loss of $4.2 million in the prior-year period. The filing also highlighted Kura Sushi’s ongoing expansion. During the nine months ended May 31, 2026, the company opened 12 restaurants, bringing its base to 91 restaurants across 22 states and Washington, D.C. After the quarter ended, it opened three additional restaurants, reaching 94 restaurants across 24 states and Washington, D.C. Management said it expects to open a total of 16 new restaurants in fiscal 2026, which it expects will increase both revenue and restaurant operating costs. Management emphasized that tariffs remain a significant operating issue. The.