10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 28, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 001-39012

KURA SUSHI USA, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	26-3808434
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
17461 Derian Avenue, Suite 200 Irvine, California	92614
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (657) 333-4100

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.001 par value per share	KRUS	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 1, 2025, the registrant had 11,085,419 shares of Class A common stock, $0.001 par value per share, outstanding and 1,000,050 shares of Class B common stock, $0.001 par value per share, outstanding.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Financial Statements (Unaudited)	1
	Condensed Balance Sheets	1
	Condensed Statements of Operations and Comprehensive Loss	2
	Condensed Statements of Stockholders’ Equity	3
	Condensed Statements of Cash Flows	4
	Notes to Condensed Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23
PART II.	OTHER INFORMATION	24
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	26
Signatures		27

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PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Kura Sushi USA, Inc.

Condensed Balance Sheets

(amounts in thousands, except par value)

(Unaudited)

	February 28, 2025			August 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	85,171		$	50,986
Accounts and other receivables		3,704			4,573
Inventories		2,354			2,219
Due from affiliate		14			166
Prepaid expenses and other current assets		3,450			3,391
Total current assets		94,693			61,335
Non-current assets:
Property and equipment – net		154,077			138,589
Operating lease right-of-use assets		140,800			123,682
Long-term investments		15,106			—
Deposits and other assets		5,696			4,916
Total assets	$	410,372		$	328,522
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	7,190		$	8,977
Accrued expenses and other current liabilities		5,226			4,261
Salaries and wages payable		8,022			8,310
Operating lease liabilities – current		12,569			10,674
Due to affiliate		816			373
Sales tax payable		1,642			1,904
Total current liabilities		35,465			34,499
Non-current liabilities:
Operating lease liabilities – non-current		148,832			130,677
Other liabilities		1,030			808
Total liabilities		185,327			165,984
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.001 par value; 1,000 shares authorized, no shares issued or outstanding		—			—
Class A common stock, $0.001 par value; 50,000 shares authorized, 11,085 and 10,253 shares issued and outstanding as of February 28, 2025 and August 31, 2024, respectively		11			10
Class B common stock, $0.001 par value; 10,000 shares authorized, 1,000 shares issued and outstanding as of February 28, 2025 and August 31, 2024		1			1
Additional paid-in capital		262,763			195,515
Accumulated deficit		(37,730	)		(32,988	)
Total stockholders' equity		225,045			162,538
Total liabilities and stockholders' equity	$	410,372		$	328,522

The accompanying notes are an integral part of these condensed financial statements.

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Kura Sushi USA, Inc.

Condensed Statements of Operations and Comprehensive Loss

(amounts in thousands, except per share data)

(Unaudited)

	Three Months Ended						Six Months Ended
	February 28, 2025			February 29, 2024			February 28, 2025			February 29, 2024
Sales	$	64,894		$	57,291		$	129,350		$	108,766
Restaurant operating costs:
Food and beverage costs		18,630			16,935			37,297			32,300
Labor and related costs		22,593			18,924			43,828			35,334
Occupancy and related expenses		5,099			3,953			9,853			7,861
Depreciation and amortization expenses		3,286			2,694			6,377			5,170
Other costs		8,780			8,200			18,121			15,644
Total restaurant operating costs		58,388			50,706			115,476			96,309
General and administrative expenses		10,985			8,168			19,718			16,777
Depreciation and amortization expenses		110			107			219			211
Total operating expenses		69,483			58,981			135,413			113,297
Operating loss		(4,589	)		(1,690	)		(6,063	)		(4,531	)
Other expense (income):
Interest expense		13			12			26			20
Interest income		(859	)		(754	)		(1,424	)		(1,594	)
Loss before income taxes		(3,743	)		(948	)		(4,665	)		(2,957	)
Income tax expense		38			50			77			88
Net loss	$	(3,781	)	$	(998	)	$	(4,742	)	$	(3,045	)
Net loss per Class A and Class B shares
Basic	$	(0.31	)	$	(0.09	)	$	(0.40	)	$	(0.27	)
Diluted	$	(0.31	)	$	(0.09	)	$	(0.40	)	$	(0.27	)
Weighted average Class A and Class B shares outstanding
Basic		12,073			11,179			11,737			11,162
Diluted		12,073			11,179			11,737			11,162
Other comprehensive income:
Unrealized gain on short-term investments	$	—		$	30		$	—		$	33
Comprehensive loss	$	(3,781	)	$	(968	)	$	(4,742	)	$	(3,012	)

The accompanying notes are an integral part of these condensed financial statements.

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Kura Sushi USA, Inc.

Condensed Statements of Stockholders’ Equity

(amounts in thousands)

(Unaudited)

	Common Stock								Additional					Total
	Class A				Class B				Paid-in		Accumulated			Stockholders'
	Shares		Amount		Shares		Amount		Capital		Deficit			Equity
Balances as of August 31, 2024		10,253	$	10		1,000	$	1	$	195,515	$	(32,988	)	$	162,538
Stock-based compensation		—		—		—		—		1,152		—			1,152
Employee stock plan		11		—		—		—		493		—			493
Issuance of common stock in connection with follow-on public offering, net of underwriter discounts and issuance costs		800		1		—		—		64,354		—			64,355
Net loss		—		—		—		—		—		(961	)		(961	)
Balances as of November 30, 2024		11,064	$	11		1,000	$	1	$	261,514	$	(33,949	)	$	227,577
Stock-based compensation		—		—		—		—		1,102		—			1,102
Employee stock plan		21		—		—		—		147		—			147
Net loss		—		—		—		—		—		(3,781	)		(3,781	)
Balances as of February 28, 2025		11,085	$	11		1,000	$	1	$	262,763	$	(37,730	)	$	225,045
	Common Stock								Additional					Accumulated			Total
	Class A				Class B				Paid-in		Accumulated			Other Comprehensive			Stockholders'
	Shares		Amount		Shares		Amount		Capital		Deficit			Income			Equity
Balances as of August 31, 2023		10,147	$	10		1,000	$	1	$	188,771	$	(24,184	)	$	43		$	164,641
Stock-based compensation		—		—		—		—		1,034		—			—			1,034
Employee stock plan		8		—		—		—		110		—			—			110
Net loss		—		—		—		—		—		(2,047	)		—			(2,047	)
Other comprehensive income		—		—		—		—		—		—			3			3
Balances as of November 30, 2023		10,155	$	10		1,000	$	1	$	189,915	$	(26,231	)	$	46		$	163,741
Stock-based compensation		—		—		—		—		1,080		—			—			1,080
Employee stock plan		71		—		—		—		1,427		—			—			1,427
Net loss		—		—		—		—		—		(998	)		—			(998	)
Other comprehensive income		—		—		—		—		—		—			30			30
Balances as of February 29, 2024		10,226	$	10		1,000	$	1	$	192,422	$	(27,229	)	$	76		$	165,280

The accompanying notes are an integral part of these condensed financial statements.

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Kura Sushi USA, Inc.

Condensed Statements of Cash Flows

(amounts in thousands)

(Unaudited)

	Six Months Ended
	February 28, 2025			February 29, 2024
Cash flows from operating activities
Net loss	$	(4,742	)	$	(3,045	)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization		6,596			5,381
Stock-based compensation, net of amounts capitalized		2,207			1,972
Bond premium amortization		155			—
Changes in operating assets and liabilities:
Accounts and other receivables		1,020			(176	)
Inventories		(135	)		(126	)
Due from affiliate		152			72
Prepaid expenses and other current assets		375			834
Deposits and other assets		112			32
Accounts payable		(829	)		(946	)
Accrued expenses and other current liabilities		1,454			829
Salaries and wages payable		(288	)		(85	)
Operating lease liabilities and assets		2,915			1,704
Due to affiliate		(6	)		(12	)
Sales tax payable		(363	)		(216	)
Net cash provided by operating activities		8,623			6,218
Cash flows from investing activities
Payments for property and equipment		(23,109	)		(22,845	)
Payments for initial direct costs		(135	)		(174	)
Purchases of liquor licenses		(891	)		(120	)
Purchases of investments		(25,261	)		(3,500	)
Maturities and redemptions of investments		10,000			5,999
Net cash used in investing activities		(39,396	)		(20,640	)
Cash flows from financing activities
Repayment of principal on finance leases		(36	)		(44	)
Taxes paid on vested restricted stock awards		(256	)		(368	)
Proceeds from exercise of stock options		896			1,905
Proceeds from the follow-on public offering, net of discounts and commissions		64,626			—
Payments of costs related to the follow-on offering		(272	)		—
Net cash provided by financing activities		64,958			1,493
Increase/ (decrease) in cash and cash equivalents		34,185			(12,929	)
Cash and cash equivalents, beginning of period		50,986			69,697
Cash and cash equivalents, end of period	$	85,171		$	56,768
Supplemental disclosures of cash flow information
Cash paid for income taxes	$	34		$	112
Noncash investing activities
Acquisition of finance leases	$	114		$	28
Amounts unpaid for purchases of property and equipment	$	1,899		$	2,394
Stock-based compensation capitalized to property and equipment, net	$	47		$	142

The accompanying notes are an integral part of these condensed financial statements.

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Kura Sushi USA, Inc.

Notes to Condensed Financial Statements

(Unaudited)

Note 1. Organization and Basis of Presentation

Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept that provides guests with a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model, which the Company refers to as the “Kura Experience.” Kura Sushi encourages healthy lifestyles by serving freshly prepared Japanese cuisine using high-quality ingredients that are free from artificial seasonings, sweeteners, colorings, and preservatives. Kura Sushi aims to make quality Japanese cuisine accessible to its guests across the United States through affordable prices and an inviting atmosphere. “Kura Sushi USA,” “Kura Sushi,” “Kura,” “our” and the “Company” refer to Kura Sushi USA, Inc. unless expressly indicated or the context otherwise requires.

Follow-On Offering

On November 13, 2024, the Company completed an underwritten public offering of common stock pursuant to the Company’s universal shelf registration statement on Form S-3, selling an aggregate of 800,328 shares of Class A common stock, including the exercise in full of the underwriters’ option to purchase 104,390 additional shares, at the price of $85.00 per share less an underwriting discount of $4.25 per share. The Company received aggregate net proceeds of $64.4 million after deducting the underwriting discounts and commissions and offering expenses payable by the Company. The proceeds are to be used for general corporate purposes, including capital expenditures, working capital, and other business purposes. No payments were made by the Company to directors, officers or persons owning 10% or more of the Company’s common stock or to their associates, or to the Company’s affiliates.

Basis of Presentation

The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2024.

The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2024. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the fiscal year ending August 31, 2025 or for any other future annual or interim period.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation.

Fiscal Year

The Company’s fiscal year begins on September 1 and ends on August 31, and references made to “fiscal year 2025” and “fiscal year 2024” refer to the Company’s fiscal years ending August 31, 2025 and ended August 31, 2024, respectively.

Use of Estimates

Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented.

Significant items subject to such estimates include asset retirement obligations, stock-based compensation, the useful lives of assets, the assessment of the recoverability of long-lived assets, and income taxes. The Company evaluates its estimates and

5

assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions.

Long-Term Investments

Long-term investments consist of long-term U.S. Government Agency debt securities. The Company considers all investments with an original maturity date greater than one year as long-term investments. The carrying value of the long-term investments is equivalent to their amortized cost basis. As of February 28, 2025 and August 31, 2024, long-term investments were $15.1 million and none, respectively. The Company classifies the long-term U.S. Government Agency debt securities as held-to-maturity. As of February 28, 2025, the Company’s holds a portfolio of held to maturity debt securities with an amortized cost basis of $15.1 million, a fair value of $15.0 million and gross unrealized holding losses of $0.1 million. Based on the evaluation of credit risk factors guaranteed by the U.S. government, the Company has concluded that an allowance for credit losses is unnecessary for its long-term investments.

Recently Issued Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Disaggregation of Income Statement Expenses”, which requires public companies to disaggregate key expense categories such as inventory purchases, employee compensation and depreciation in their financial statements. In January 2025, the FASB issued ASU 2025-01 “Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures- Clarifying the Effective Date”, which amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company expects to adopt the guidance in our annual report on Form 10-K for the fiscal year ending August 31, 2028. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid and effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company expects to adopt the guidance in our annual report on Form 10-K for the fiscal year ending August 31, 2026. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance in this update is effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company expects to adopt the guidance in our annual report on Form 10-K for the fiscal year ending August 31, 2025. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures.

Note 2. Balance Sheet Components

Accounts and Other Receivables

	February 28, 2025		August 31, 2024
	(amounts in thousands)
Lease receivables	$	1,853	$	1,701
Credit card and other receivables		1,851		2,872
Total accounts and other receivables	$	3,704	$	4,573

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Property and Equipment - net

	February 28, 2025			August 31, 2024
	(amounts in thousands)
Leasehold improvements	$	117,611		$	100,345
Lease assets		6,135			6,108
Furniture and fixtures		60,911			50,951
Computer equipment		4,286			3,714
Vehicles		273			243
Software		1,017			1,017
Construction in progress		9,211			15,080
Property and equipment – gross		199,444			177,458
Less: accumulated depreciation and amortization		(45,367	)		(38,869	)
Total property and equipment – net	$	154,077		$	138,589

Depreciation and amortization expense for property and equipment was $3.4 million and $2.8 million for the three months ended February 28, 2025 and February 29, 2024, respectively, and was $6.6 million and $5.4 million for the six months ended February 28, 2025 and February 29, 2024, respectively.

Note 3. Leases

The Company has operating and finance leases for its corporate offices, restaurant locations, office equipment, kitchen equipment and automobiles. The Company’s finance leases are not material. The Company’s leases have remaining lease terms of less than 1 year to 30 years, some of which include options to extend the leases.

Lease related costs recognized in the condensed statements of operations and comprehensive loss are as follows:

		Three Months Ended				Six Months Ended
		February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
		(amounts in thousands)
Operating lease cost	Classification
Operating lease cost	Occupancy and related expenses, other costs and general and administrative expenses	$	4,031	$	3,237	$	7,835	$	6,298
Variable lease cost	Occupancy and related expenses, and general and administrative expenses		1,030		724		2,021		1,575
Total operating lease cost		$	5,061	$	3,961	$	9,856	$	7,873

Supplemental disclosures of cash flow information related to leases are as follows:

	Six Months Ended
	February 28, 2025		February 29, 2024
	(amounts in thousands)
Operating cash flows paid for operating lease liabilities	$	6,581	$	4,954
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$	19,496	$	11,893

As of February 28, 2025, the Company had an additional $25.0 million of operating lease liabilities related to restaurants for which the Company had not yet taken possession. Subsequent to February 28, 2025, the Company entered into additional operating leases related to restaurants for which the Company has not yet taken possession. The lease liabilities associated with these leases are $22.6 million and expected to commence in fiscal year 2025 and 2026 with lease terms of up to 20 years.

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Note 4. Related Party Transactions

Kura Sushi, Inc. (“Kura Japan”) is the majority stockholder of the Company and is incorporated and headquartered in Japan. In August 2019, the Company entered into a Shared Services Agreement with Kura Japan, pursuant to which Kura Japan provides the Company with certain strategic, operational and other support services, including assigning certain employees to work for the Company as expatriates to provide support to the Company’s operations, sending its employees to the Company on a short-term basis to provide support for the opening of new restaurants or renovation of existing restaurants, and providing the Company with certain supplies, parts and equipment for use in the Company’s restaurants. In addition, the Company has agreed to continue to provide Kura Japan with certain translational support services and market research. In exchange for such services, supplies, parts and equipment, the parties pay fees to each other as set forth under the Shared Services Agreement. A right of setoff is not required; however, from time to time, either party will net settle transactions as needed. Purchases of administrative supplies, expatriate salaries and travel and other administrative expenses payable to Kura Japan are included in general and administrative expenses in the accompanying statements of operations and comprehensive loss. Purchases of equipment from Kura Japan are included in property and equipment in the accompanying balance sheets.

In August 2019, the Company entered into an Amended and Restated Exclusive License Agreement (the “License Agreement”) with Kura Japan. Pursuant to the License Agreement, the Company pays Kura Japan a royalty fee of 0.5% of the Company’s net sales in exchange for an exclusive, royalty-bearing license for the use of certain of Kura Japan’s intellectual property rights, including, but not limited to, Kura Japan’s trademarks for “Kura Sushi,” “Mr. Fresh” and “Kura Revolving Sushi Bar,” and patents for a food management system and the Mr. Fresh protective dome, among other intellectual property rights necessary to continue operation of the Company’s restaurants. Royalty payments to Kura Japan are included in other costs at the restaurant level in the accompanying condensed statements of operations and comprehensive income loss.

On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, as amended, to provide the Company a revolving credit line of $45.0 million (as amended, the “Revolving Credit Agreement”). For additional information, see “Note 6. Debt.”

Balances with Kura Japan are as follows:

	February 28, 2025		August 31, 2024
	(amounts in thousands)
Due from affiliate	$	14	$	166
Due to affiliate	$	816	$	373

Reimbursements and other payments by the Company to Kura Japan were as follows:

	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
	(amounts in thousands)
Related party transactions:
Expatriate salaries expense	$	27	$	48	$	56	$	91
Royalty payments		325		287		647		545
Travel and other administrative expenses		1		—		43		5
Purchases of equipment		1,148		797		2,412		1,437
Total related party transactions	$	1,501	$	1,132	$	3,158	$	2,078

Reimbursements by Kura Japan to the Company were $43 thousand and $65 thousand for the three months ended February 28, 2025 and February 29, 2024, respectively and were $230 thousand and $222 thousand for the six months ended February 28, 2025 and February 29, 2024, respectively. The reimbursements were primarily for travel, professional fees and other administrative expenses.

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Note 5. Stock-based Compensation

The following table summarizes the stock option activity under the Company’s 2018 Incentive Compensation Plan, as amended and restated (the “Stock Incentive Plan”):

	Options Outstanding
	Number of Shares Underlying Outstanding Options			Weighted Average Exercise Price Per Share
Outstanding — August 31, 2024		610,514		$	41.11
Granted		2,195		$	77.53
Exercised		(11,006	)	$	44.84
Cancelled/forfeited		(5,919	)	$	56.32
Outstanding — November 30, 2024		595,784		$	41.03
Granted		38,457		$	80.61
Exercised		(13,581	)	$	29.69
Cancelled/forfeited		(6,177	)	$	73.93
Outstanding — February 28, 2025		614,483		$	43.42

The following table summarizes the restricted stock unit (“RSU”) activity under the Stock Incentive Plan:

	Number of Shares Underlying Outstanding RSU			Weighted Average Grant Date  Fair Value
Outstanding — August 31, 2024		36,120		$	84.01
Granted		—			—
Vested		—			—
Cancelled/forfeited		(873	)	$	81.89
Outstanding — November 30, 2024		35,247		$	84.06
Granted		33,021		$	80.00
Vested		(10,499	)	$	81.11
Cancelled/forfeited		(1,616	)	$	88.44
Outstanding — February 28, 2025		56,153		$	82.10

During the three months ended February 28, 2025, the Company granted 8,724 performance restricted stock units (“PSUs”) with a three-year performance vesting period and a weighted average grant date fair value of $80.00.

The total stock-based compensation recognized under the Stock Incentive Plan in the condensed statements of operations and comprehensive loss is as follows:

	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
	(amounts in thousands)
Restaurant-level stock-based compensation included in labor and related costs	$	199	$	156	$	378	$	303
Corporate-level stock-based compensation included in general and administrative expenses		882		810		1,829		1,669
Stock-based compensation, net of amounts capitalized		1,081		966		2,207		1,972
Amount capitalized to property and equipment - net		21		114		47		142
Total stock-based compensation	$	1,102	$	1,080	$	2,254	$	2,114

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Note 6. Debt

On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, as amended, establishing a $45.0 million revolving credit line for the Company. The maturity date for each advance is 60 months from the date of disbursement and the last day of the period of availability for advances is April 10, 2025. The Revolving Credit Note under the Revolving Credit Agreement has an interest rate for advances (made on or after April 10, 2021) fixed at 130% of the Annual Compounding Long-Term Applicable Federal Rate (“AFR”) on the date such advance is made. There are no financial covenants under the Revolving Credit Agreement with which the Company must comply.

As of February 28, 2025 and August 31, 2024, the Company had no outstanding balance and $45.0 million of availability remaining under the Revolving Credit Agreement. For additional information, see “Note 4. Related Party Transactions.”

On April 4, 2025, the Company and Kura Japan entered into a Third Amendment to Revolving Credit Agreement (the “Third Amendment”) to extend the last day of the period of availability for the advances under the credit line from April 10, 2025 to April 10, 2028. In connection with the Third Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the Third Amendment.

Note 7. Loss Per Share

The net loss per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the loss for the year had been distributed. As the liquidation and dividend rights for Class A and Class B common stock are identical, the net loss attributable to all common stockholders is allocated on a proportionate basis.

The following table sets forth the computation of the Company’s basic and diluted net loss per share:

	Three Months Ended												Six Months Ended
	February 28, 2025						February 29, 2024						February 28, 2025						February 29, 2024
	Class A			Class B			Class A			Class B			Class A			Class B			Class A			Class B
	(amounts in thousands, except per share data)
Net loss attributable to common stockholders	$	(3,468	)	$	(313	)	$	(909	)	$	(89	)	$	(4,338	)	$	(404	)	$	(2,772	)	$	(273	)
Weighted average common shares outstanding – basic		11,073			1,000			10,179			1,000			10,737			1,000			10,162			1,000
Dilutive effect of stock-based awards		—			—			—			—			—			—			—			—
Weighted average common shares outstanding – diluted		11,073			1,000			10,179			1,000			10,737			1,000			10,162			1,000
Net loss per share attributable to common stockholders – basic	$	(0.31	)	$	(0.31	)	$	(0.09	)	$	(0.09	)	$	(0.40	)	$	(0.40	)	$	(0.27	)	$	(0.27	)
Net loss per share attributable to common stockholders – diluted	$	(0.31	)	$	(0.31	)	$	(0.09	)	$	(0.09	)	$	(0.40	)	$	(0.40	)	$	(0.27	)	$	(0.27	)

The Company computes basic loss per common share using net loss and the weighted average number of common shares outstanding during the period, and computes diluted loss per common share using net loss and the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include dilutive outstanding employee stock options and restricted stock units.

For the three and six months ended February 28, 2025, there were 679 thousand shares of common stock subject to outstanding employee stock options, RSUs and PSUs that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive. For the three and six months ended February 29, 2024 , there were 678 thousand shares of common stock subject to outstanding employee stock options and RSUs that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive.

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Note 8. Commitments and Contingencies

On January 19, 2024, two former employees initiated arbitration against the Company. Subsequently, on February 26, 2024, three additional former employees initiated a separate arbitration against the Company. Both sets of claimants allege violations of the Fair Labor Standards Act (“FLSA”) and violations of certain Washington, D.C. wage laws. In both arbitrations, claimants purported to raise collective claims on behalf of other similarly situated employees and former employees. In August 2024, the Company settled the claims with these five former employees, as well as 58 other current and former employees asserting similar claims (some under the laws of Pennsylvania, Virginia and Massachusetts), for approximately $3.9 million. Since that time, other current and former employees have asserted claims under the FLSA and applicable state laws (including Pennsylvania, New Jersey and Massachusetts) through counsel. In October 2024, the Company agreed to settle those claims for approximately $1.2 million.

The Company expensed $5.1 million related to these matters within general and administrative expenses in the condensed statements of operations and comprehensive loss and paid $3.9 million during the fiscal year ended August 31, 2024. The Company paid the remaining accrued liability of $1.2 million related to these matters in October 2024. In February 2025, the Company agreed to settle additional claims for approximately $2.1 million, which was paid in March 2025.

The Company is involved from time to time in various legal proceedings that arise in the ordinary course of business, including but not limited to commercial disputes, environmental matters, employee related claims, intellectual property disputes and litigation in connection with transactions, including acquisitions and divestitures.

In the opinion of management, the Company does not believe that such litigation, claims, and administrative proceedings will have a material adverse effect on its business, financial position, results of operations or cash flows. However, a significant increase in the number of these claims or an increase in amounts owing under successful claims, including the putative class action referenced above, could materially and adversely affect its business, financial condition, results of operations or cash flows. The Company records a liability when a loss is considered probable, and the amount can be reasonably estimated.

Note 9. Income Taxes

The Company recorded an income tax expense of $38 thousand and $50 thousand for the three months ended February 28, 2025 and February 29, 2024, respectively and income tax expense of $77 thousand and $88 thousand for the six months ended February 28, 2025 and February 29, 2024, respectively. The Company’s effective tax rates for the three and six months ended February 28, 2025 substantially differed from the federal statutory tax rate of 21% primarily due to a valuation allowance for the Company’s deferred tax assets and permanent difference related to employer tip credit.

The Company continually monitors and performs an assessment of the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets using a “more likely than not” standard. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Based on the Company’s review of this evidence, management determined that a full valuation allowance against all of the Company’s net deferred tax assets at February 28, 2025 was appropriate.

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Note 10. Fair Value Measurements

The following table sets forth the Company’s assets measured at fair value on a recurring basis as of February 28, 2025.

	Level 1		Level 2		Level 3		Total
	(amounts in thousands)
Assets:
U.S. Government Agency debt securities	$	—	$	15,011	$	—	$	15,011
Total assets at fair value	$	—	$	15,011	$	—	$	15,011

The Company’s cash and cash equivalents include cash on hand, deposits in banks, certificates of deposits and money market funds. Due to their short-term nature, the carrying amounts reported in the accompanying balance sheets approximate the fair value of cash and cash equivalents. The fair value of our U.S. Government Agency debt securities are considered using Level 2 inputs of the fair value hierarchy. Level 2 inputs are based on market data that include factors such as interest rates, market and pricing activity and other market-based valuation techniques.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited financial statements and the related notes included in this Quarterly Report on Form 10-Q and with the audited financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended August 31, 2024 (the “Annual Report”).

In addition to historical information, the following discussion and analysis contains forward-looking statements, such as statements about our plans, objectives, expectations, and intentions, which are based on current expectations and that involve risks, uncertainties and assumptions as set forth and described in the “Special Note Regarding Forward-Looking Statements” and “Risk Factors” sections of the Annual Report. You should review those sections in our Annual Report for a discussion of important factors, including the continuing development of our business and other factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in this Quarterly Report on Form 10-Q.

“Kura Sushi USA,” “Kura Sushi,” “Kura,” “we,” “us,” “our,” “our company” and the “Company” refer to Kura Sushi USA, Inc. unless expressly indicated or the context otherwise requires.

Overview

Kura Sushi USA is a technology-enabled Japanese restaurant concept that provides guests with a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model, which we refer to as the “Kura Experience.” We encourage healthy lifestyles by serving freshly prepared Japanese cuisine using high-quality ingredients that are free from artificial seasonings, sweeteners, colorings, and preservatives. We aim to make quality Japanese cuisine accessible to our guests across the United States through affordable prices and an inviting atmosphere.

Business Trends

During the six months ended February 28, 2025, we opened nine restaurants and expanded our restaurant base to 73 restaurants in twenty states and Washington, DC. Subsequent to February 28, 2025, we opened two additional restaurants totaling 75 restaurants. We expect to open a total of 14 new restaurants in fiscal year 2025 and therefore, we expect our revenue and restaurant operating costs to increase in fiscal year 2025. We also expect our general and administrative expenses to increase on a dollar basis in fiscal 2025 to support the growth of the company.

We have evaluated and will continue to evaluate the impact of import laws and tariffs on our operations. As of February 28, 2025, there was no material impact on our business, financial condition, results of operations or cash flows. However, we expect tariffs may impact our operations in certain areas, such as food and beverage costs, construction and equipment costs and other restaurant operating costs, for the remainder of fiscal 2025.

Key Financial Definitions

Sales. Sales represent sales of food and beverages in restaurants. Restaurant sales in a given period are directly impacted by the number of restaurants we operate and comparable restaurant sales performance.

Food and beverage costs. Food and beverage costs are variable in nature, change with sales volume and are influenced by menu mix and subject to increases or decreases based on fluctuations in commodity costs. Other important factors causing fluctuations in food and beverage costs include seasonality and restaurant-level management of food waste. Food and beverage costs are a substantial expense and are expected to grow proportionally as our sales grow.

Labor and related expenses. Labor and related expenses include all restaurant-level management and hourly labor costs, including wages, employee benefits, stock-based compensation for restaurant-level employees and payroll taxes. Similar to the food and beverage costs that we incur, labor and related expenses are expected to grow proportionally as our sales grow. Factors that influence fluctuations in our labor and related expenses include minimum wage and payroll tax legislation, the frequency and severity of workers’ compensation claims, healthcare costs and the performance of our restaurants.

Occupancy and related expenses. Occupancy and related expenses include rent for all restaurant locations and related taxes.

Depreciation and amortization expenses. Depreciation and amortization expenses are periodic non-cash charges that consist of depreciation of fixed assets, including equipment and capitalized leasehold improvements. Depreciation is determined using the straight-line method over the assets’ estimated useful lives, which range from three to 20 years.

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Other costs. Other costs include credit card processing fees, repairs and maintenance, restaurant-level advertising and promotions, restaurant supplies, royalty payments to Kura Japan, utilities and other restaurant-level expenses.

General and administrative expenses. General and administrative expenses include expenses associated with corporate and regional supervision functions that support the operations of existing restaurants and development of new restaurants, including compensation and benefits, travel expenses, stock-based compensation for corporate-level employees, legal and professional fees, information systems, corporate office rent and other related corporate costs. General and administrative expenses are expected to grow as our unit base grows.

Interest expense. Interest expense includes cash and non-cash charges related to our line of credit and finance lease obligations.

Interest income. Interest income includes income earned on our money market funds and investments.

Income tax expense (benefit). Provision for income taxes represents federal, state and local current and deferred income tax expense (benefit).

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Results of Operations

The following tables present selected comparative results of operations for the three and six months ended February 28, 2025 and February 29, 2024. Our financial results for these periods are not necessarily indicative of the financial results that we will achieve in future periods. Certain totals for the tables below may not recalculate or sum to 100% due to rounding.

	Three Months Ended
	February 28, 2025			February 29, 2024			$ Change			% Change
	(dollar amounts in thousands)
Sales	$	64,894		$	57,291		$	7,603			13.3		%
Restaurant operating costs
Food and beverage costs		18,630			16,935			1,695			10.0
Labor and related costs		22,593			18,924			3,669			19.4
Occupancy and related expenses		5,099			3,953			1,146			29.0
Depreciation and amortization expenses		3,286			2,694			592			22.0
Other costs		8,780			8,200			580			7.1
Total restaurant operating costs		58,388			50,706			7,682			15.2
General and administrative expenses		10,985			8,168			2,817			34.5
Depreciation and amortization expenses		110			107			3			2.8
Total operating expenses		69,483			58,981			10,502			17.8
Operating loss		(4,589	)		(1,690	)		(2,899	)		(171.5	)
Other expense (income):
Interest expense		13			12			1			8.3
Interest income		(859	)		(754	)		(105	)		13.9
Loss before income taxes		(3,743	)		(948	)		(2,795	)		294.8
Income tax expense		38			50			(12	)		(24.0	)
Net loss	$	(3,781	)	$	(998	)	$	(2,783	)		278.9		%
	Six Months Ended
	February 28, 2025			February 29, 2024			$ Change			% Change
	(dollar amounts in thousands)
Sales	$	129,350		$	108,766		$	20,584			18.9		%
Restaurant operating costs
Food and beverage costs		37,297			32,300			4,997			15.5
Labor and related costs		43,828			35,334			8,494			24.0
Occupancy and related expenses		9,853			7,861			1,992			25.3
Depreciation and amortization expenses		6,377			5,170			1,207			23.3
Other costs		18,121			15,644			2,477			15.8
Total restaurant operating costs		115,476			96,309			19,167			19.9
General and administrative expenses		19,718			16,777			2,941			17.5
Depreciation and amortization expenses		219			211			8			3.8
Total operating expenses		135,413			113,297			22,116			19.5
Operating loss		(6,063	)		(4,531	)		(1,532	)		(33.8	)
Other expense (income):
Interest expense		26			20			6			30.0
Interest income		(1,424	)		(1,594	)		170			(10.7	)
Loss before income taxes		(4,665	)		(2,957	)		(1,708	)		57.8
Income tax expense		77			88			(11	)		(12.5	)
Net loss	$	(4,742	)	$	(3,045	)	$	(1,697	)		55.7		%

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	Three Months Ended								Six Months Ended
	February 28, 2025				February 29, 2024				February 28, 2025				February 29, 2024
	(as a percentage of sales)
Sales		100.0		%		100.0		%		100.0		%		100.0		%
Restaurant operating costs
Food and beverage costs		28.7				29.6				28.8				29.7
Labor and related costs		34.8				33.0				33.9				32.5
Occupancy and related expenses		7.9				6.9				7.6				7.2
Depreciation and amortization expenses		5.1				4.7				4.9				4.8
Other costs		13.5				14.3				14.0				14.4
Total restaurant operating costs		90.0				88.5				89.2				88.6
General and administrative expenses		16.9				14.3				15.2				15.4
Depreciation and amortization expenses		0.2				0.2				0.2				0.2
Total operating expenses		107.1				103.0				104.6				104.2
Operating loss		(7.1	)			(3.0	)			(4.6	)			(4.2	)
Other expense (income):
Interest expense		—				—				—				—
Interest income		(1.3	)			(1.3	)			(1.1	)			(1.5	)
Loss before income taxes		(5.8	)			(1.7	)			(3.5	)			(2.7	)
Income tax expense		0.1				0.1				0.1				0.1
Net loss		(5.9	)	%		(1.8	)	%		(3.6	)	%		(2.8	)	%

Three Months Ended February 28, 2025 Compared to Three Months Ended February 29, 2024

Sales. Sales were $64.9 million for the three months ended February 28, 2025 compared to $57.3 million for the three months ended February 29, 2024, representing an increase of $7.6 million, or 13.3%. The increase in sales was primarily driven by the sales resulting from fourteen new restaurants opened subsequent to February 29, 2024, as well as increases in menu prices during the same period. Comparable restaurant sales decreased 5.3% for the three months ended February 28, 2025, as compared to the three months ended February 29, 2024 primarily due to a reduction in traffic.

Food and beverage costs. Food and beverage costs were $18.6 million for the three months ended February 28, 2025 compared to $16.9 million for the three months ended February 29, 2024, representing an increase of $1.7 million, or 10.0%. The increase in food and beverage costs was primarily driven by costs associated with sales from fourteen new restaurants opened subsequent to February 29, 2024. As a percentage of sales, food and beverage costs decreased to 28.7% in the three months ended February 28, 2025 as compared to 29.6% in the three months ended February 29, 2024, primarily due to increases in menu prices and supply chain initiatives, which was partially offset by food cost inflation.

Labor and related costs. Labor and related costs were $22.6 million for the three months ended February 28, 2025 compared to $18.9 million for the three months ended February 29, 2024, representing an increase of $3.7 million, or 19.4%. This increase in labor and related costs was primarily driven by additional labor costs incurred from fourteen new restaurants opened subsequent to February 29, 2024. As a percentage of sales, labor and related costs increased to 34.8% in the three months ended February 28, 2025 as compared to 33.0% in the three months ended February 29, 2024. The increase in cost as a percentage of sales was primarily due to increases in wage rates subsequent to February 29, 2024.

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Occupancy and related expenses. Occupancy and related expenses were $5.1 million for the three months ended February 28, 2025 compared to $4.0 million for the three months ended February 29, 2024, representing an increase of $1.1 million, or 29.0%. The increase was primarily a result of additional lease expense related to the opening of fourteen new restaurants subsequent to February 29, 2024. As a percentage of sales, occupancy and related expenses increased to 7.9% in the three months ended February 28, 2025 as compared to 6.9% in the three months ended February 29, 2024, primarily driven by sales deleverage.

Depreciation and amortization expenses. Depreciation and amortization expenses incurred as part of restaurant operating costs were $3.3 million for the three months ended February 28, 2025 compared to $2.7 million for the three months ended February 29, 2024, representing an increase of $0.6 million, or 22.0%. The increase consists of depreciation of property and equipment related to the fourteen new restaurants that opened subsequent to February 29, 2024. As a percentage of sales, depreciation and amortization expenses at the restaurant level was 5.1% for the three months ended February 28, 2025 as compared to 4.7% in the three months ended February 29, 2024. Depreciation and amortization expenses incurred at the corporate level were $0.1 million for both the three months ended February 28, 2025 and February 29, 2024, and as a percentage of sales were both 0.2%, respectively.

Other costs. Other costs were $8.8 million for the three months ended February 28, 2025 compared to $8.2 million for the three months ended February 29, 2024, representing an increase of $0.6 million, or 7.1%. The increase was primarily driven by an increase in costs related to the fourteen new restaurants that opened subsequent to February 29, 2024. As a percentage of sales, other costs decreased to 13.5% in the three months ended February 28, 2025 as compared to 14.3% in the three months ended February 29, 2024, primarily driven by lower marketing, recruiting and travel expenses.

General and administrative expenses. General and administrative expenses were $11.0 million for the three months ended February 28, 2025 compared to $8.2 million for the three months ended February 29, 2024, representing an increase of $2.8 million, or 34.5%. This increase was primarily due to the litigation settlement of $2.1 million, compensation-related costs of $0.5 million and $0.2 million in other net increases. As a percentage of sales, general and administrative expenses increased to 16.9% in the three months ended February 28, 2025 as compared to 14.3% in the three months ended February 29, 2024, primarily due to the $2.1 million litigation settlement expense, partially offset with sales leverage.

Interest expense. Interest expense was $13 thousand for the three months ended February 28, 2025 compared to $12 thousand for the three months ended February 29, 2024, respectively.

Interest income. Interest income was $859 thousand for the three months ended February 28, 2025 compared to $754 thousand for the three months ended February 29, 2024. The increase was primarily driven by investing incremental cash from our follow-on offering completed in November 2024 into money market funds and long-term investments, partially offset by lower interest rates.

Income tax expense. Income tax expense was $38 thousand for the three months ended February 28, 2025 compared to an income tax expense of $50 thousand for the three months ended February 29, 2024. For further discussion of our income taxes, see “Note 9. Income Taxes” in the Notes to Condensed Financial Statements.

Six Months Ended February 28, 2025 Compared to Six Months Ended February 29, 2024

Sales. Sales were $129.4 million for the six months ended February 28, 2025 compared to $108.8 million for the six months ended February 29, 2024, representing an increase of $20.6 million, or 18.9%. The increase in sales was primarily driven by the sales resulting from fourteen new restaurants opened subsequent to February 29, 2024, as well as increases in menu prices during the same period. Comparable restaurant sales decreased 1.6% for the six months ended February 28, 2025, as compared to the six months ended February 29, 2024, primarily due to a reduction in traffic.

Food and beverage costs. Food and beverage costs were $37.3 million for the six months ended February 28, 2025 compared to $32.3 million for the six months ended February 29, 2024, representing an increase of $5.0 million, or 15.5%. The increase in food and beverage costs was primarily driven by costs associated with sales from fourteen new restaurants opened subsequent to February 29, 2024. As a percentage of sales, food and beverage costs decreased to 28.8% in the six months ended February 28, 2025 as compared to 29.7% in the six months ended February 29, 2024, primarily due to increases in menu prices and supply chain initiatives, which was partially offset by food cost inflation.

Labor and related costs. Labor and related costs were $43.8 million for the six months ended February 28, 2025 compared to $35.3 million for the six months ended February 29, 2024, representing an increase of $8.5 million, or 24.0%. This increase in labor and related costs was primarily driven by additional labor costs incurred from fourteen new restaurants opened subsequent to February 29, 2024. As a percentage of sales, labor and related costs increased to 33.9% in the six months ended February 28, 2025 as compared to 32.5% in the six months ended February 29, 2024. The increase in cost as a percentage of sales was primarily due to increases in wage rates subsequent to February 29, 2024.

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Occupancy and related expenses. Occupancy and related expenses were $9.9 million for the six months ended February 28, 2025 compared to $7.9 million for the six months ended February 29, 2024, representing an increase of $2.0 million, or 25.3%. The increase was primarily a result of additional lease expense related to the opening of fourteen new restaurants opened subsequent to February 29, 2024. As a percentage of sales, occupancy and related expenses increased to 7.6% in the six months ended February 28, 2025, compared to 7.2% in the six months ended February 29, 2024, primarily driven by sales deleverage.

Depreciation and amortization expenses. Depreciation and amortization expenses incurred as part of restaurant operating costs were $6.4 million for the six months ended February 28, 2025 compared to $5.2 million for the six months ended February 29, 2024, representing an increase of $1.2 million, or 23.3%. The increase consists of depreciation of property and equipment related to fourteen new restaurants opened subsequent to February 29, 2024. As a percentage of sales, depreciation and amortization expenses at the restaurant level remained reasonably consistent at 4.9% for the six months ended February 28, 2025 as compared to 4.8% for the six months ended February 29, 2024. Depreciation and amortization expenses incurred at the corporate level were $0.2 million for both the six months ended February 28, 2025 and February 29, 2024, and as a percentage of sales were both 0.2%, respectively.

Other costs. Other costs were $18.1 million for the six months ended February 28, 2025 compared to $15.6 million for the six months ended February 29, 2024, representing an increase of $2.5 million, or 15.8%. The increase was primarily driven by an increase in costs related to fourteen new restaurants opened subsequent to February 29, 2024. As a percentage of sales, other costs decreased to 14.0% in the six months ended February 28, 2025 from 14.4% in the six months ended February 29, 2024, primarily driven by lower marketing, recruiting and travel expenses.

General and administrative expenses. General and administrative expenses were $19.7 million for the six months ended February 28, 2025 compared to $16.8 million for the six months ended February 29, 2024, representing an increase of $2.9 million, or 17.5%. This increase was primarily due to the litigation settlement of $2.1 million and compensation-related costs of $1.1 million partially offset by $0.3 million decrease in professional fees. As a percentage of sales, general and administrative expenses decreased to 15.2% in the six months ended February 28, 2025 from 15.4% in the six months ended February 29, 2024, primarily driven by sales leverage, partially offset by the $2.1 million litigation settlement expense.

Interest expense. Interest expense was $26 thousand for the six months ended February 28, 2025 compared to $20 thousand for the six months ended February 29, 2024.

Interest income. Interest income was $1.4 million for the six months ended February 28, 2025 compared to $1.6 million for the six months ended February 29, 2024. The decrease was primarily driven by lower interest rates.

Income tax expense. Income tax expense was $77 thousand for the six months ended February 28, 2025 compared to $88 thousand for the six months ended February 29, 2024. For further discussion of our income taxes, see “Note 9. Income Taxes” in the Notes to Condensed Financial Statements.

Key Performance Indicators

In assessing the performance of our business, we consider a variety of financial and performance measures. The key measures for determining how our business is performing include sales, EBITDA, Adjusted EBITDA, Restaurant-level Operating Profit, Restaurant-level Operating Profit margin, comparable restaurant sales performance, and the number of restaurant openings.

Sales

Sales represents sales of food and beverages in restaurants, as shown on our condensed statements of operations and comprehensive loss. Several factors affect our restaurant sales in any given period, including the number of restaurants in operation, guest traffic and average check.

EBITDA and Adjusted EBITDA

EBITDA is defined as net income (loss) before interest, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA plus stock-based compensation expense, non-cash lease expense and asset disposals, closure costs and restaurant impairments, as well as certain items, such as litigation that we believe are not indicative of our core operating results. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by sales. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures which are intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP. We believe that EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results.

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However, these measures may not provide a complete understanding of the operating results of the Company as a whole and such measures should be reviewed in conjunction with our GAAP financial results.

We believe that the use of EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware when evaluating EBITDA, Adjusted EBITDA and Adjusted EBITDA margin that in the future we may incur expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate Adjusted EBITDA and Adjusted EBITDA margin in the same fashion.

Because of these limitations, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using EBITDA, Adjusted EBITDA and Adjusted EBITDA margin on a supplemental basis. You should review the reconciliation of net income (loss) to EBITDA, Adjusted EBITDA and Adjusted EBITDA margin below and not rely on any single financial measure to evaluate our business.

The following table reconciles net loss to EBITDA and Adjusted EBITDA:

	Three Months Ended						Six Months Ended
	February 28, 2025			February 29, 2024			February 28, 2025			February 29, 2024
	(amounts in thousands)
Net loss	$	(3,781	)	$	(998	)	$	(4,742	)	$	(3,045	)
Interest income, net		(846	)		(742	)		(1,398	)		(1,574	)
Income tax expense		38			50			77			88
Depreciation and amortization expenses		3,396			2,801			6,596			5,381
EBITDA		(1,193	)		1,111			533			850
Stock-based compensation expense(a)		1,081			966			2,207			1,972
Non-cash lease expense(b)		681			773			1,401			1,590
Litigation(c)		2,105			—			2,105			205
Adjusted EBITDA	$	2,674		$	2,850		$	6,246		$	4,617
Adjusted EBITDA margin		4.1	%		5.0	%		4.8	%		4.2	%

(a)Stock-based compensation expense includes non-cash stock-based compensation, which is comprised of restaurant-level stock-based compensation included in labor and related costs and of corporate-level stock-based compensation included in general and administrative expenses in the condensed statements of operations and comprehensive loss. For further details of stock-based compensation, see “Note 5. Stock-based Compensation” in the notes to condensed financial statements included in this Quarterly Report on Form 10-Q.

(b)Non-cash lease expense includes lease expense from the date of possession of our restaurants that did not require cash outlay in the respective periods.

(c)Litigation includes expenses related to legal claims or settlements.

Restaurant-level Operating Profit and Restaurant-level Operating Profit Margin

Restaurant-level Operating Profit (Loss) is defined as operating income (loss) plus depreciation and amortization; stock-based compensation expense; pre-opening costs and general and administrative expenses which are considered normal, recurring, cash operating expenses and are essential to support the development and operations of our restaurants; non-cash lease expense; asset disposals, closure costs and restaurant impairments; less corporate-level stock-based compensation expense recognized within general and administrative expenses. Restaurant-level Operating Profit (Loss) margin is defined as Restaurant-level Operating Profit (Loss) divided by sales. Restaurant-level Operating Profit (Loss) and Restaurant-level Operating Profit (Loss) margin are non-GAAP measures which are intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP. We believe that Restaurant-level Operating Profit (Loss) and Restaurant-level Operating Profit (Loss) margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results, as this measure depicts normal, recurring cash operating expenses essential to supporting the development and operations of our restaurants. However, these measures may not provide a complete understanding of the operating results of the

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Company as a whole and such measures should be reviewed in conjunction with our GAAP financial results. We expect Restaurant-level Operating Profit (Loss) to increase in proportion to the number of new restaurants we open and our comparable restaurant sales growth.

We present Restaurant-level Operating Profit (Loss) because it excludes the impact of general and administrative expenses, which are not incurred at the restaurant level. We also use Restaurant-level Operating Profit (Loss) to measure operating performance and returns from opening new restaurants. Restaurant-level Operating Profit (Loss) margin allows us to evaluate the level of Restaurant-level Operating Profit (Loss) generated from sales.

However, you should be aware that Restaurant-level Operating Profit (Loss) and Restaurant-level Operating Profit (Loss) margin are financial measures that are not indicative of overall results for the Company, and Restaurant-level Operating Profit (Loss) and Restaurant-level Operating Profit (Loss) margin do not accrue directly to the benefit of stockholders because of corporate-level expenses excluded from such measures.

In addition, when evaluating Restaurant-level Operating Profit (Loss) and Restaurant-level Operating Profit (Loss) margin, you should be aware that in the future we may incur expenses similar to those excluded when calculating these measures. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of Restaurant-level Operating Profit (Loss) and Restaurant-level Operating Profit (Loss) margin may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate Restaurant-level Operating Profit (Loss) and Restaurant-level Operating Profit (Loss) margin in the same fashion. Restaurant-level Operating Profit (Loss) and Restaurant-level Operating Profit (Loss) margin have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP.

The following table reconciles operating loss to Restaurant-level Operating Profit and Restaurant-level Operating Profit margin:

	Three Months Ended						Six Months Ended
	February 28, 2025			February 29, 2024			February 28, 2025			February 29, 2024
	(amounts in thousands)
Operating loss	$	(4,589	)	$	(1,690	)	$	(6,063	)	$	(4,531	)
Depreciation and amortization expenses		3,396			2,801			6,596			5,381
Stock-based compensation expense(a)		1,081			966			2,207			1,972
Pre-opening costs(b)		545			1,001			901			1,750
Non-cash lease expense(c)		681			773			1,401			1,590
General and administrative expenses		10,985			8,168			19,718			16,777
Corporate-level stock-based compensation in general and administrative expenses		(882	)		(810	)		(1,829	)		(1,669	)
Restaurant-level operating profit	$	11,217		$	11,209		$	22,931		$	21,270
Operating loss margin		(7.1	)%		(2.9	)%		(4.7	)%		(4.2	)%
Restaurant-level operating profit margin		17.3	%		19.6	%		17.7	%		19.6	%

(a)Stock-based compensation expense includes non-cash stock-based compensation, which is comprised of restaurant-level stock-based compensation included in labor and related costs and of corporate-level stock-based compensation included in general and administrative expenses in the condensed statements of operations and comprehensive loss. For further details of stock-based compensation, see “Note 5. Stock-based Compensation” in the notes to condensed financial statements included in this Quarterly Report on Form 10-Q.

(b)Pre-opening costs consist of labor costs and travel expenses for new employees and trainers during the training period, recruitment fees, legal fees, cash-based lease expenses incurred between the date of possession and the opening day of our restaurants, and other related pre-opening costs.

(c)Non-cash lease expense includes lease expense from the date of possession of our restaurants that did not require cash outlay in the respective periods.

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Comparable Restaurant Sales Performance

Comparable restaurant sales performance refers to the change in year-over-year sales for the comparable restaurant base. We include restaurants in the comparable restaurant base that have been in operation for at least 18 full calendar months prior to the start of the accounting period presented due to new restaurants experiencing a period of higher sales upon opening. For restaurants that were temporarily closed the comparative period was also adjusted.

Measuring our comparable restaurant sales performance allows us to evaluate the performance of our existing restaurant base. Various factors impact comparable restaurant sales, including:

•consumer recognition of our brand and our ability to respond to changing consumer preferences;

•overall economic trends, particularly those related to consumer spending;

•our ability to operate restaurants effectively and efficiently to meet consumer expectations;

•pricing;

•guest traffic;

•per-guest spend and average check;

•marketing and promotional efforts;

•local competition; and

•opening of new restaurants in the vicinity of existing locations.

Since opening new restaurants will be a significant component of our sales growth, comparable restaurant sales performance is only one measure of how we evaluate our performance. The following table shows the comparable restaurant sales performance:

	Three Months Ended		Six Months Ended
	February 28, 2025	February 29, 2024	February 28, 2025	February 29, 2024
Comparable restaurant sales performance (%)	(5.3)%	3.0%	(1.6)%	3.5%
Comparable restaurant base	49	38	45	36

Number of Restaurant Openings

The number of restaurant openings reflects the number of restaurants opened during a particular reporting period. Before we open new restaurants, we incur pre-opening costs. New restaurants may not be profitable, and their sales performance may not follow historical patterns. The number and timing of restaurant openings has had, and is expected to continue to have, an impact on our results of operations. The following table shows the growth in our restaurant base:

	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
Restaurant activity:
Beginning of period		70		54		64		50
Openings		3		5		9		9
End of period		73		59		73		59

Liquidity and Capital Resources

Our primary sources of liquidity and cash flows are cash and cash equivalents on hand and cash provided by operating activities. Our primary uses of cash are for operational expenditures and capital investments, including new restaurants, costs incurred for restaurant remodels and restaurant fixtures. The significant components of our working capital are liquid assets such as cash, cash equivalents and receivables reduced by accounts payable and accrued expenses. Our working capital position benefits from the fact that we generally collect cash from sales to guests the same day or, in the case of credit or debit card transactions, within several days of the related sale, while we typically have longer payment terms with our vendors.

We believe that cash provided by operating activities, cash, and cash equivalents on hand will be sufficient to fund our lease obligations, capital expenditures and working capital needs for at least the next 12 months. We also maintain a Revolving Credit

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Agreement with Kura Japan, of which the maturity date has been extended to April 10, 2028 pursuant to the Third Amendment to Revolving Credit Agreement with Kura Japan.

During the six months ended February 28, 2025, we had no borrowings under the Revolving Credit Agreement and have $45.0 million of availability remaining. As of February 28, 2025, we did not have any material off-balance sheet arrangements.

On November 13, 2024, we completed an underwritten public offering of common stock pursuant to our universal shelf registration statement on Form S-3, selling an aggregate of 800,328 shares of Class A common stock, including the exercise in full of the underwriters’ option to purchase 104,390 additional shares, at the price of $85.00 per share less an underwriting discount of $4.25 per share. We received aggregate net proceeds of $64.4 million after deducting the underwriting discounts and commissions and offering expenses payable by us. The proceeds are to be used for general corporate purposes, including capital expenditures, working capital, and other business purposes. No payments were made by us to directors, officers or persons owning 10% or more of the our common stock or to their associates, or to our affiliates.

Summary of Cash Flows

The following table summarizes our cash flows for the periods presented:

	Six Months Ended
	February 28, 2025			February 29, 2024
Statement of Cash Flow data:	(amounts in thousands)
Net cash provided by operating activities	$	8,623		$	6,218
Net cash used in investing activities	$	(39,396	)	$	(20,640	)
Net cash provided by financing activities	$	64,958		$	1,493

Cash Flows Provided by Operating Activities

Net cash provided by operating activities during the six months ended February 28, 2025 was $8.6 million, primarily due to a net loss of $4.7 million, non-cash charges of $6.6 million for depreciation and amortization, $2.2 million for stock-based compensation, and net cash outflows of $4.4 million from changes in operating assets and liabilities.

Net cash provided by operating activities during the six months ended February 29, 2024 was $6.2 million, primarily due to a net loss of $3.0 million, non-cash charges of $5.4 million for depreciation and amortization, $2.0 million for stock-based compensation and net cash outflows of $1.9 million from changes in operating assets and liabilities.

Cash Flows Used in Investing Activities

Net cash used in investing activities during the six months ended February 28, 2025 was $39.4 million, primarily due to $25.3 million in purchases of long-term investments, $23.1 million in purchases of property and equipment and $0.9 million in purchases of liquor licenses offset by $10.0 million of redemptions of long-term investments. The increase in purchases of property and equipment in the six months ended February 28, 2025 is primarily related to capital expenditures for future restaurant openings, maintaining our existing restaurants and other projects.

Net cash used in investing activities during the six months ended February 29, 2024 was $20.6 million, primarily due to $3.5 million in purchases of short-term investments, $22.8 million in purchases of property and equipment and $0.1 million in purchases of liquor licenses offset by $5.9 million of redemption of short-term investments. The increase in purchases of property and equipment in the six months ended February 29, 2024 is primarily related to capital expenditures for future restaurant openings, maintaining our existing restaurants and other projects.

Cash Flows Provided by Financing Activities

Net cash provided by financing activities during the six months ended February 28, 2025 was $65.0 million and is primarily due to aggregate net proceeds from the issuance of stock of $64.4 million after deducting the underwriting discounts and commissions and offering expenses, $0.9 million of proceeds from exercise of stock options offset by $0.3 million in taxes paid on vested RSUs.

Net cash provided by financing activities during the six months ended February 29, 2024 was $1.5 million and is primarily due to $1.9 million of proceeds from exercise of stock options offset by $0.4 million in taxes paid on vested RSUs.

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Material Cash Requirements

As of February 28, 2025, we had $7.8 million in contractual obligations relating to the construction of new restaurants and purchase commitments for goods related to restaurant operations. All contractual obligations are expected to be paid during the next 12 months utilizing cash and cash equivalents on hand and provided by operating activities. For operating lease obligations, see “Note 3. Leases” in the Notes to Condensed Financial Statements included in this Quarterly Report on Form 10-Q.

Recent Accounting Pronouncements

For a description of our recently issued or adopted accounting pronouncements, including the respective date of adoption and expected effect on our results of operations and financial condition, see “Part I, Item 1, Note 1. Organization and Basis of Presentation” of the Notes to Condensed Financial Statements included in this Quarterly Report on Form 10-Q.

Critical Accounting Estimates

Our discussion and analysis of operating results and financial condition are based on our financial statements. Preparing our financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales, expenses and related disclosures of contingent assets and liabilities. We base our estimates on past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis.

Our critical accounting policies are those that materially affect our financial statements. Our critical accounting estimates are those that involve subjective or complex judgments by management. Although these estimates are based on management’s best knowledge of current events and actions that may impact us in the future, actual results may be materially different from the estimates. We believe the assessment of potential impairments of long-lived assets is affected by significant judgments and estimates used in the preparation of our financial statements and that the judgments and estimates are reasonable.

There have been no material changes in our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10‑K for the fiscal year ended August 31, 2024. Please refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” of our Annual Report on Form 10‑K for the fiscal year ended August 31, 2024 for a discussion of our critical accounting policies and estimates.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes to our market risk during the six months ended February 28, 2025. For a discussion of our exposure to market risk, refer to our market risk disclosures set forth in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of our 2024 Form 10-K.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Our management carried out an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q.

Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q.

Changes in Internal Control over Financial Reporting

In our current fiscal quarter, we have implemented a new purchasing and inventory management system across all of our restaurants. In connection with the new system, we have implemented additional controls. There have been no other changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

For a description of our legal proceedings, see Part I, Item 1, Note 8 – Commitments and Contingencies, of the Notes to Condensed Financial Statements of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

Item 1A. Risk Factors.

There have been no material changes from the risk factors associated with our business previously disclosed in the “Risk Factors” section of our Annual Report on Form 10-K for our fiscal year ended August 31, 2024, except as set forth below. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business and the trading price of our common stock.

Changes in food and supply costs and/or availability of products could adversely affect our business, financial condition or results of operations.

Our profitability depends in part on our ability to anticipate and react to changes in food and supply costs and/or the availability of products necessary to operate our business, including, but not limited to, rice vinegar from Kura Japan, which owns the recipe and is our sole supplier of such rice vinegar. Shortages or interruptions in the availability of certain supplies caused by unanticipated demand, problems in production or distribution, tariffs or other trade restrictions, food contamination, inclement weather, natural disasters, or other conditions could adversely affect the productivity, availability, quality and cost of our ingredients, which could harm our operations. Any increase in the prices of the food products most critical to our menu, such as rice, fish and other seafood, as well as fresh vegetables, could adversely affect our business, financial condition or results from operations. Although we try to manage the impact that these fluctuations have on our operating results, we remain susceptible to increases in food costs and loss of supply as a result of factors beyond our control, such as general economic conditions, political instability, inflationary pressures, seasonal fluctuations, the effects of climate change and related weather conditions, demand, food safety concerns, generalized infectious diseases, product recalls and government regulations. Additionally, tariffs could impact supply chain reliability, disrupt established sourcing strategies, and result in increased operational complexity. Higher costs due to tariffs will generally lead to price increases for our products and other restaurant operating costs, potentially reducing consumer demand and impacting our competitive position in the market.

If any of our distributors or suppliers performs inadequately, or our distribution or supply relationships are disrupted for any reason, our business, financial condition, results of operations or cash flows could be adversely affected. If we cannot replace or engage distributors or suppliers who meet our specifications in a short period of time, that could increase our expenses and cause shortages of food and other items at our restaurants, which could cause a restaurant to remove items from its menu. If that were to happen, affected restaurants could experience significant reductions in sales during the shortage or thereafter, if guests change their dining habits as a result. In addition, because we provide moderately priced food, we may choose not to, or may be unable to, pass along commodity price increases to consumers. These potential changes in food and supply costs could materially adversely affect our business, financial condition or results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

During the three months ended February 28, 2025, no director or officer of the Company, adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

On April 4, 2025, the Company and Kura Japan entered into a Third Amendment to Revolving Credit Agreement (the “Third Amendment”) to extend the last day of the period of availability for the advances under the credit line from April 10, 2025 to April 10,

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2028. In connection with the Third Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the Third Amendment.

The foregoing is only a summary of the material terms of the Third Amendment and does not purport to be complete, and is qualified in its entirety by reference to the Third Amendment attached thereto, a copy of which is attached to this Quarterly Report on Form 10-Q as Exhibit 10.2 and incorporated by reference herein.

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Item 6. Exhibits.

Exhibit Number	Description
10.1	Form of Performance Restricted Stock Unit Award Notice and Award Agreement (incorporated by reference to our current report on Form 8-K filed with the SEC on January 24, 2025 as Exhibit 10.1)
10.2*	Third Amendment to Revolving Credit Agreement dated April 4, 2025.
31.1*	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104	Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)

* Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	KURA SUSHI USA, INC.
Date: April 8, 2025	By:	/s/ Jeffrey Uttz
		Jeffrey Uttz
		Chief Financial Officer (Principal Financial Officer)

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EX-10.2

THIRD AMENDMENT TO REVOLVING CREDIT AGREEMENT

THIS THIRD AMENDMENT TO REVOLVING CREDIT AGREEMENT (this “Third Amendment”) effective as of April 4, 2025, is made and executed between KURA SUSHI USA, INC., a Delaware corporation (“Borrower”) and KURA SUSHI INC., a Japanese corporation (“Lender”).

RECITALS

A. Borrower and Lender entered into that certain Revolving Credit Agreement dated as of April 10, 2020 (as amended from time to time, the “Loan Agreement”) whereby Lender agreed to make available to Borrower loans on a revolving credit basis, in the principal amount of up to Twenty Million United States Dollars (US$20,000,000.00) (as amended from time to time, the “Loan”) as evidenced by that certain Promissory Note dated as of April 10, 2020 with Borrower as maker and made payable to Lender (as amended from time to time, the “Note”).

B. Borrower and Lender are parties to that certain First Amendment to Loan Documents dated as of September 2, 2020 whereby the parties agreed to increase the maximum credit amount to Thirty-Five Million United States Dollars (US$35,000,000), to extend the Maturity Date for the respective Advances from 12 months to 60 months, and to extend the period of availability for the Advances.

C. Borrower and Lender are parties to that certain Second Amendment to Loan Documents dated as of April 9, 2021 whereby the parties agreed to further increase the maximum credit amount to Forty-Five Million United States Dollars (US$45,000,000).

D. Borrower and Lender now wish to further extend the period of availability for the Advances, as set forth below.

NOW, THEREFORE, in consideration of the mutual covenants and benefits contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

AGREEMENT

1.Defined Terms. Capitalized terms used but not defined herein shall have the respective meanings assigned to them in the Loan Agreement.

2.Reaffirmation of the Loan. Borrower reaffirms all of its obligations under the Loan Agreement, and Borrower acknowledges that it has no claims, offsets, or defenses with respect to payment of sums due under the Loan Agreement or the Note.

3.Amendments to the Loan Agreement. The Loan Agreement is hereby amended as follows:

(a)Section 2.1 of the Loan Agreement. Section 2.1 of the Loan Agreement, which presently reads in its entirety as follows:

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2.1 Credit Line. Subject to the terms and conditions of this Agreement, Lender agrees to make cash Advances (individually an “Advance” and collectively the “Advances”) to Borrower from the date hereof until April 10, 2025. The aggregate principal amount of all outstanding Advances shall not exceed at any one time the Credit Line Commitment.

is hereby amended and restated to read in its entirety as follows:

2.1 Credit Line. Subject to the terms and conditions of this Agreement, Lender agrees to make cash Advances (individually an “Advance” and collectively the “Advances”) to Borrower from the date hereof until April 10, 2028 (the “Termination Date”). The aggregate principal amount of all outstanding Advances shall not exceed at any one time the Credit Line Commitment.

(b)Section 2.2 of the Loan Agreement. Section 2.2 of the Loan Agreement, which presently reads in its entirety as follows:

2.2Loan Fee. Borrower shall pay a fee of $20,000 to Lender in connection with the origination of this Agreement upon the execution of this Agreement. Thereafter, Borrower shall pay the following maintenance fees to Lender: $8,750 on September 1, 2020, $35,000 on April 1, 2021, $35,000 on April 1, 2022, $35,000 on April 1, 2023, and $35,000 on April 1, 2024.

is hereby amended and restated to read in its entirety as follows:

2.2Loan Fee. Borrower shall pay a fee of $45,000 to Lender in connection with the closing of the Third Amendment to Revolving Credit Agreement dated April 4, 2025. Thereafter, Borrower shall pay the following maintenance fees to Lender: $45,000 on April 10, 2026 and $45,000 on April 10, 2027.

4.Amendment to the Note. The Note is hereby amended and restated to read in its entirety as set forth in Exhibit A to this Third Amendment.

5.Conditions Precedent. The effectiveness of this Third Amendment is conditioned on Lender’s receipt of, and, as applicable, Borrower’s satisfaction of, the following:

(a)two executed counterparts of this Third Amendment executed by Borrower and Lender; and

(b)such other assurances, certificates, documents, consents or opinions as Lender may reasonably require.

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6.Representations and Warranties. Borrower reaffirms and restates as of the date hereof all of the representations and warranties made by Borrower in the Loan Agreement, except to the extent such representations and warranties specifically relate to an earlier date.

7.Confirmation. Except as modified by this Third Amendment, the terms of the Loan Agreement and the Note are hereby ratified and confirmed and shall remain in full force and effect, without waiver or modification.

8.Due Execution. Borrower affirms to Lender that the execution, delivery, and performance of this Third Amendment are within the powers of Borrower, have been duly authorized by all necessary company action, have received all necessary governmental approvals, if any, and do not contravene any law or any contractual restrictions binding on Borrower.

9.Estoppel. To induce Lender to enter into this Third Amendment, Borrower hereby acknowledges and agrees that, after giving effect to this Third Amendment, as of the date hereof, there exists no default or Event of Default and no right of offset, defense, counterclaim, or objection in favor of Borrower as against Lender with respect to the Loan.

10.Counterparts. This Third Amendment may be executed in counterparts, which counterparts, when so executed and delivered, shall together constitute but one original. Delivery of an executed counterpart to this Third Amendment by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be as valid and effective as the delivery of a manually executed counterpart of this Third Amendment.

11.Severability. Any provision of this Third Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Third Amendment, and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

12.Costs and Expenses. Borrower agrees to pay all reasonable costs and expenses (including reasonable attorneys’ fees) expended or incurred by Lender in connection with the negotiation, documentation, and preparation of this Third Amendment and any other documents executed in connection herewith.

13.Governing Law. This Third Amendment shall be governed by and construed in accordance with the laws of the State of California.

14.Headings. The headings in this Third Amendment are inserted solely for the convenience of reference and are not a part of and are not intended to govern, limit, or aid in the construction or interpretation of any term or provision hereof.

15.No Oral Agreements. This Third Amendment represents the final agreement between the parties with respect to the subject matter hereof and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties.

3

[ The remainder of this page is intentionally blank; signature page follows. ]

4

IN WITNESS WHEREOF, the undersigned have executed this Third Amendment as of the date first written above.

Borrower:

KURA SUSHI USA, INC.,

a Delaware corporation

By: /s/ Jeffrey Uttz

Name: Jeffrey Uttz

Title: Chief Financial Officer

Address:

17461 Derian Avenue, Suite 200, Irvine, California 92614

Lender:

KURA SUSHI INC.,

a Japanese corporation

By: /s/ Kenji Ogoshi

Name: Kenji Ogoshi

Title: Managing Director

Address:

1-2-2 Fukasaka, Naka-ku, Sakai, Osaka Japan 599-8253

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EXHIBIT A

AMENDED AND RESTATED REVOLVING CREDIT NOTE

6

AMENDED AND RESTATED REVOLVING CREDIT NOTE

This Amended and Restated Revolving Credit Note amends and restates in its entirety that certain Amended and Restated Revolving Credit Note dated as of April 9, 2021 made by KURA SUSHI USA, INC., a Delaware corporation, payable to KURA SUSHI INC., a Japanese corporation, in the original principal amount of Forty-Five Million United States Dollars (U.S.$45,000,000.00).

REVOLVING CREDIT NOTE

U.S.$45,000,000.00

1.PROMISE TO PAY/PLACE OF PAYMENT. FOR VALUE RECEIVED, the undersigned KURA SUSHI USA, INC., a Delaware corporation (“Borrower”), promises to pay KURA SUSHI INC., a Japanese corporation (“Lender”), the principal sum of Forty-Five Million United States Dollars (U.S.$45,000,000.00), or such lesser sum as may be loaned to Borrower pursuant to the Loan Agreement (as defined below), together with interest on the principal balance, from time to time remaining unpaid, from the Disbursement Date until paid, at the Interest Rate set forth in this Note.

2.RECORD OF ADVANCES AND CREDIT. Borrower hereby authorizes Lender to enter in its books and records all loans (“Advances”) made to Borrower and all payments of principal amounts in respect of such loans, which entries shall, in the absence of manifest error, be conclusive as to the outstanding principal amount of all loans made to Borrower; provided, however that the failure to make such entries with respect to any loan or payment shall not limit or otherwise affect the obligations of Borrower under the Loan Agreement or this Note.

3.DEFINITIONS. Capitalized terms in this Note that are not defined when first used have the meanings set forth below or, if not defined below, as defined in the Loan Agreement:

3.1Disbursement Date. The Disbursement Date is the date on which Lender first disburses an Advance to or for the account of Borrower.

3.2Interest Rate. The Interest Rate for advances disbursed to Borrower prior to April 10, 2021 shall be one and one tenth percent (1.10%) per annum, and the Interest Rate for Advances made to Borrower on or after April 10, 2021 shall be one hundred thirty percent (130%) of the Annual Compounding Long-Term Applicable

7

Federal Rate which was most recently published by the Internal Revenue Service, on or before the date such Advance is made, and the Interest Rate for such Advance shall remain fixed for that Advance until that Advance is fully repaid.

3.3Loan Agreement. The Loan Agreement is that certain revolving credit agreement dated as of April 10, 2020, between Lender and Borrower, as the same may be amended from time to time.

3.4Maturity Date. Maturity Date, for any Advance, means the date which is sixty (60) months after the date such Advance was disbursed to Borrower, unless renewed or extended by mutual agreement of Borrower and Lender in additional twelve (12) month increments.

3.5Prime Rate. Prime Rate shall mean the rate of interest which Bank of America, N.A. (“BOA”) announces and publishes from its principal office in San Francisco as its “prime rate”. The Prime Rate is not intended to be the lowest rate of interest charged by BOA to its borrowers. Each change in the Interest Rate shall become effective on the effective date of each change in Prime Rate, as announced by BOA. If more than one category of “prime rate” publicly announced by BOA is in effect during any calendar month, the Prime Rate shall be the highest “prime rate” in effect. If BOA shall not publicly announce its “prime rate”, then the Prime Rate shall be the highest reference, base or prime rate in effect as announced by the largest bank (in terms of capital and surplus) having its principal office in Los Angeles, California, which bank publicly announces such a rate.

4.PAYMENT OF PRINCIPAL AND INTEREST. Principal and interest shall be payable in accordance with the following provisions:

4.1Payments of Interest. Borrower shall pay to Lender accrued but unpaid interest on the unpaid principal balance of this Note, on demand. Borrower and Lender agree that the Interest Rate on an Advance may be subject to adjustment by mutual agreement if the maturity of an Advance is renewed or extended.

4.2Application of Payments. Notwithstanding any provision to the contrary, payments of principal and interest received shall be applied first to any late payment fees, then to accrued interest, and lastly to principal.

4.3Payments of Principal. Borrower shall repay each cash Advance not later than the Maturity Date of such Advance. Amounts repaid may be re-borrowed, provided that no Advance shall be made on or after April 10, 2028.

5.CALCULATION OF INTEREST. Interest payable with respect to any monthly payment shall be calculated according to the actual number of days in such period as a fraction of a 360‑day year.

6.PREPAYMENTS WITH NO PENALTY. Borrower may at any time prepay the principal amount outstanding under this Note in whole or in part together with

8

accrued interest to the date of such prepayment on the amount prepaid. Amounts prepaid hereunder may be re-borrowed.

7.ACCELERATION ON DEFAULT. If any part of the principal or interest under this Note is not paid when due, or if an Event of Default under the Loan Agreement or any other instrument securing or executed in connection with this Note or the Loan Agreement is not cured by a date specified in a notice to Borrower, the entire principal amount outstanding and the accrued interest shall at once become due and payable at the option of Lender. Lender may exercise this option to accelerate during any Event of Default by Borrower regardless of any prior forbearance. Any failure of Lender to make such election following an Event of Default shall not constitute a waiver of Lender’s right to make the election in the event of any subsequent Event of Default.

8.LATE PAYMENT CHARGE. If any payment of principal or interest under this Note is not paid within five (5) calendar days of when due, a late charge of Two Hundred Dollars (US$200.00) may be charged by Lender for the purpose of defraying the expenses incident to handling such delinquent payments. Such late charge represents a reasonable sum considering all of the circumstances existing on the date of this Note and represents a fair and reasonable estimate of the costs that will be sustained by Lender due to the failure of Borrower to make timely payments. The parties further agree that proof of actual damages would be costly or inconvenient. Such late charge shall be paid without prejudice to the right of Lender to collect any other amounts provided to be paid or to declare a default under this Note or from exercising any of the other rights and remedies of Lender.

9.INTEREST ON LATE PAYMENTS. Notwithstanding any provision in this Note to the contrary, any principal, accrued interest, late payment charges, and other amounts which are payable under this Note, the Loan Agreement or any other instrument, agreement, or document executed by Borrower in connection with the loan evidenced by this Note and which are not paid within five (5) calendar days of when due, shall thereafter bear interest, compounded monthly, at the rate which is the sum of three percent (3%) per annum plus the Prime Rate then in effect, not to exceed the maximum rate of interest allowed by law.

10.ATTORNEYS’ FEES. Borrower agrees to pay the following costs, expenses, and attorneys’ fees paid or incurred by Lender, or adjudged by a court: (1) Actual costs of collection, costs and expenses, and attorneys’ fees paid or incurred in connection with the collection, enforcement, modification, or administration of this Note or any Loan Document, whether or not suit is filed; and (2) costs of suit and such sum as the court may adjudge as attorneys’ fees in any action to enforce payment of this Note or any part of it. In addition to the foregoing award of attorneys’ fees, Lender shall be entitled to its attorneys’ fees incurred in any post-judgment proceedings to enforce any judgment in connection with this Note or any Loan Document. This provision is separate and several and shall survive the merger of this provision into any judgment.

9

11.WAIVER OF PRESENTMENT, NOTICE OF DISHONOR, AND PROTEST. Presentment, notice of dishonor, and protest are waived by all makers, sureties, guarantors, and endorsers of this Note.

12.FORBEARANCE NOT A WAIVER. No delay or omission on the part of Lender in exercising any rights under this Note or under the Loan Agreement or any other security agreement given to secure this Note, on default by Borrower, shall operate as a waiver of such right or of any other right under this Note or other agreements, for the same default or any other default. Borrower, any sureties, guarantors, and endorsers of this Note consent to all extensions without notice for any period or periods of time and to the acceptance of partial payments before or after maturity, and to the acceptance, release, and substitution of security, all without prejudice to Lender. Lender shall similarly have the right to deal in any way, at any time, with one or more of the foregoing parties without notice to any other party, and to grant such party any extensions of time for payments of any of the indebtedness, or to grant any other indulgences or forbearances whatsoever, without notice to any other party and without in any way affecting the personal liability of any such party.

13.LOSS, THEFT, DESTRUCTION OR MUTILATION OF NOTE. In the event of the loss, theft or destruction of this Note, upon Borrower’s receipt of a reasonably satisfactory indemnification agreement executed in favor of Borrower by the party who held this Note immediately prior to its loss, theft or destruction, or in the event of the mutilation of this Note, upon Lender’s surrender to Borrower of the mutilated Note, Borrower shall execute and deliver to such party or Lender, as the case may be, a new promissory note in form and content identical to this Note in lieu of the lost, stolen, destroyed or mutilated Note.

14.NOTICES. Any notice, request, demand, statement, authorization, approval, or consent required or permitted under this Note shall be in writing and shall be made in accordance with Section 9.5 of the Loan Agreement.

15.GOVERNING LAW. THIS NOTE SHALL BE CONSTRUED AND ENFORCEABLE ACCORDING TO THE LAWS OF THE STATE OF CALIFORNIA. VENUE FOR PURPOSES OF THIS NOTE WILL BE IN ANY COURT SERVICING ORANGE COUNTY AND BORROWER AGREES TO BE SUBJECT TO THE PERSONAL JURISDICTION OF THE STATE OF CALIFORNIA, INCLUDING ANY STATE OR FEDERAL COURT SITTING THEREIN AND ALL COURT RULES THEREOF.

16.WAIVER OF STATUTE OF LIMITATIONS. The pleading of any statute of limitations as a defense to the obligations evidenced by this Note is waived to the fullest extent permissible by law.

17.TIME IS OF THE ESSENCE. Time is of the essence for each and every obligation under this Note.

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18.ASSIGNMENT. Lender shall have the right to sell, assign, or otherwise transfer, either in part or in its entirety, this Note, and any other instrument evidencing or securing the indebtedness of this Note without Borrower’s consent. Borrower may not assign or otherwise transfer this Note without Lender’s prior written consent.

19.SUCCESSORS AND ASSIGNS. This Note and all of the covenants, promises, and agreements contained in it shall be binding on and inure to the benefit of the respective legal and personal representatives, devises, heirs, successors, and assigns of Lender and Borrower.

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IN WITNESS WHEREOF, Borrower has executed this Note as of April 4, 2025.

KURA SUSHI USA, INC.,

a Delaware corporation

By: /s/ Jeffrey Uttz

Name: Jeffrey Uttz

Title: Chief Financial Officer

Address:

17461 Derian Avenue, Suite 200

Irvine, California 92614

12

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Hajime Uba, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Kura Sushi USA, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: April 8, 2025	/s/ Hajime Uba
	Hajime Uba
	Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jeffrey Uttz, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Kura Sushi USA, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: April 8, 2025	/s/ Jeffrey Uttz
	Jeffrey Uttz
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Kura Sushi USA, Inc. (the “Company”) on Form 10-Q for the period ending February 28, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Dated: April 8, 2025	By:	/s/ Hajime Uba
		Hajime Uba
		Chairman, President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Kura Sushi USA, Inc. (the “Company”) on Form 10-Q for the period ending February 28, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Dated: April 8, 2025	By:	/s/ Jeffrey Uttz
		Jeffrey Uttz
		Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Feb. 28, 2025	Apr. 01, 2025
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2025
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q2
Title of 12(b) Security	Class A Common Stock, $0.001 par value per share
Trading Symbol	KRUS
Security Exchange Name	NASDAQ
Entity Registrant Name	KURA SUSHI USA, INC.
Entity Central Index Key	0001772177
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--08-31
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity File Number	001-39012
Entity Tax Identification Number	26-3808434
Entity Address, Address Line One	17461 Derian Avenue
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Incorporation, State or Country Code	DE
Entity Address, Postal Zip Code	92614
City Area Code	657
Local Phone Number	333-4100
Document Quarterly Report	true
Document Transition Report	false
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		11,085,419
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,000,050

XML

Condensed Balance Sheets - USD ($)	Feb. 28, 2025	Aug. 31, 2024
Current assets:
Cash and cash equivalents	$ 85,171,000	$ 50,986,000
Accounts and other receivables	3,704,000	4,573,000
Inventories	2,354,000	2,219,000
Prepaid expenses and other current assets	3,450,000	3,391,000
Total current assets	94,693,000	61,335,000
Non-current assets:
Property and equipment – net	154,077,000	138,589,000
Operating lease right-of-use assets	140,800,000	123,682,000
Long-term investments	15,106,000	0
Deposits and other assets	5,696,000	4,916,000
Total assets	410,372,000	328,522,000
Current liabilities:
Accounts payable	7,190,000	8,977,000
Accrued expenses and other current liabilities	5,226,000	4,261,000
Salaries and wages payable	8,022,000	8,310,000
Operating lease liabilities – current	12,569,000	10,674,000
Due to affiliate	816,000	373,000
Sales tax payable	1,642,000	1,904,000
Total current liabilities	35,465,000	34,499,000
Non-current liabilities:
Operating lease liabilities – non-current	148,832,000	130,677,000
Other liabilities	1,030,000	808,000
Total liabilities	185,327,000	165,984,000
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.001 par value; 1,000 shares authorized, no shares issued or outstanding
Additional paid-in capital	262,763,000	195,515,000
Accumulated deficit	(37,730,000)	(32,988,000)
Total stockholders' equity	225,045,000	162,538,000
Total liabilities and stockholders' equity	410,372,000	328,522,000
Affiliated Entity [Member]
Current assets:
Due from affiliate	14,000	166,000
Class A
Stockholders' equity:
Common stock	11,000	10,000
Class B
Stockholders' equity:
Common stock	$ 1,000	$ 1,000

XML

Condensed Balance Sheets (Parenthetical) - $ / shares	Feb. 28, 2025	Aug. 31, 2024
Preferred stock, par value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Class A
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	11,085,000	10,253,000
Common stock, shares outstanding	11,085,000	10,253,000
Class B
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	10,000,000	10,000,000
Common Stock, Shares, Issued	1,000,000	1,000,000
Common stock, shares outstanding	1,000,000	1,000,000

XML

Condensed Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2025	Feb. 29, 2024	Feb. 28, 2025	Feb. 29, 2024
Sales	$ 64,894	$ 57,291	$ 129,350	$ 108,766
Restaurant operating costs:
Depreciation and amortization expenses	3,286	2,694	6,377	5,170
Other costs	8,780	8,200	18,121	15,644
Total restaurant operating costs	58,388	50,706	115,476	96,309
General and administrative expenses	10,985	8,168	19,718	16,777
Depreciation and amortization expenses	110	107	219	211
Total operating expenses	69,483	58,981	135,413	113,297
Operating loss	(4,589)	(1,690)	(6,063)	(4,531)
Other expense (income):
Interest expense	13	12	26	20
Interest income	(859)	(754)	(1,424)	(1,594)
Loss before income taxes	(3,743)	(948)	(4,665)	(2,957)
Income tax expense	38	50	77	88
Net loss	$ (3,781)	$ (998)	$ (4,742)	$ (3,045)
Net loss per Class A and Class B shares
Basic	$ (0.31)	$ (0.09)	$ (0.4)	$ (0.27)
Diluted	$ (0.31)	$ (0.09)	$ (0.4)	$ (0.27)
Weighted average Class A and Class B shares outstanding
Basic	12,073	11,179	11,737	11,162
Diluted	12,073	11,179	11,737	11,162
Other comprehensive income:
Unrealized gain on short-term investments		$ 30		$ 33
Comprehensive loss	$ (3,781)	(968)	$ (4,742)	(3,012)
Food and Beverage Costs
Restaurant operating costs:
Cost of goods and services sold	18,630	16,935	37,297	32,300
Labor and Related Costs
Restaurant operating costs:
Cost of goods and services sold	22,593	18,924	43,828	35,334
Occupancy and Related Expenses
Restaurant operating costs:
Cost of goods and services sold	$ 5,099	$ 3,953	$ 9,853	$ 7,861

XML

Condensed Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Class A	Class B	Common Stock Class A	Common Stock Class B	Additional Paid-in-Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Beginning balances at Aug. 31, 2023	$ 164,641			$ 10	$ 1	$ 188,771	$ (24,184)	$ 43
Beginning balance, shares at Aug. 31, 2023				10,147	1,000
Stock-based compensation	1,080					1,080
Employee stock plan	110					110
Employee stock plan, shares				8
Net loss	(2,047)						(2,047)
Other comprehensive income	3							3
Ending balances at Nov. 30, 2023	163,741			$ 10	$ 1	189,915	(26,231)	46
Ending balance, shares at Nov. 30, 2023				10,155	1,000
Beginning balances at Aug. 31, 2023	164,641			$ 10	$ 1	188,771	(24,184)	43
Beginning balance, shares at Aug. 31, 2023				10,147	1,000
Net loss	(3,045)
Ending balances at Feb. 29, 2024	165,280			$ 10	$ 1	192,422	(27,229)	76
Ending balance, shares at Feb. 29, 2024				10,226	1,000
Beginning balances at Nov. 30, 2023	163,741			$ 10	$ 1	189,915	(26,231)	46
Beginning balance, shares at Nov. 30, 2023				10,155	1,000
Stock-based compensation	1,034					1,034
Employee stock plan	1,427					1,427
Employee stock plan, shares				71
Net loss	(998)						(998)
Other comprehensive income	30							30
Ending balances at Feb. 29, 2024	165,280			$ 10	$ 1	192,422	(27,229)	$ 76
Ending balance, shares at Feb. 29, 2024				10,226	1,000
Beginning balances at Aug. 31, 2024	162,538			$ 10	$ 1	195,515	(32,988)
Beginning balance, shares at Aug. 31, 2024		10,253,000	1,000,000	10,253	1,000
Stock-based compensation	1,152					1,152
Employee stock plan	493					493
Employee stock plan, shares				11
Issuance of common stock in connection with follow-on public offering, net of underwriter discounts and issuance costs	64,355			$ 1		64,354
Issuance of common stock in connection with follow-on public offering, net of underwriter discounts and issuance costs, shares				800
Net loss	(961)						(961)
Ending balances at Nov. 30, 2024	227,577			$ 11	$ 1	261,514	(33,949)
Ending balance, shares at Nov. 30, 2024				11,064	1,000
Beginning balances at Aug. 31, 2024	162,538			$ 10	$ 1	195,515	(32,988)
Beginning balance, shares at Aug. 31, 2024		10,253,000	1,000,000	10,253	1,000
Net loss	(4,742)
Ending balances at Feb. 28, 2025	225,045			$ 11	$ 1	262,763	(37,730)
Ending balance, shares at Feb. 28, 2025		11,085,000	1,000,000	11,085	1,000
Beginning balances at Nov. 30, 2024	227,577			$ 11	$ 1	261,514	(33,949)
Beginning balance, shares at Nov. 30, 2024				11,064	1,000
Stock-based compensation	1,102					1,102
Employee stock plan	147					147
Employee stock plan, shares				21
Net loss	(3,781)						(3,781)
Ending balances at Feb. 28, 2025	$ 225,045			$ 11	$ 1	$ 262,763	$ (37,730)
Ending balance, shares at Feb. 28, 2025		11,085,000	1,000,000	11,085	1,000

XML

Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Feb. 28, 2025	Feb. 29, 2024
Cash flows from operating activities
Net loss	$ (4,742)	$ (3,045)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	6,596	5,381
Stock-based compensation, net of amounts capitalized	2,207	1,972
Bond premium and accrued interest amortization	155	0
Changes in operating assets and liabilities:
Accounts and other receivables	1,020	(176)
Inventories	(135)	(126)
Due from affiliate	152	72
Prepaid expenses and other current assets	375	834
Deposits and other assets	112	32
Accounts payable	(829)	(946)
Accrued expenses and other current liabilities	1,454	829
Salaries and wages payable	(288)	(85)
Operating lease liabilities and assets	2,915	1,704
Due to affiliate	(6)	(12)
Sales tax payable	(363)	(216)
Net cash provided by operating activities	8,623	6,218
Cash flows from investing activities
Payments for property and equipment	(23,109)	(22,845)
Payments for initial direct costs	(135)	(174)
Purchases of liquor licenses	(891)	(120)
Purchases of investments	(25,261)	(3,500)
Maturities and redemptions of investments	10,000	5,999
Net cash used in investing activities	(39,396)	(20,640)
Cash flows from financing activities
Repayment of principal on finance leases	(36)	(44)
Taxes paid on vested restricted stock awards	(256)	(368)
Proceeds from exercise of stock options	896	1,905
Proceeds from the follow-on public offering, net of discounts and commissions	64,626
Payments of costs related to the follow-on offering	(272)
Net cash provided by financing activities	64,958	1,493
Increase/ (decrease) in cash and cash equivalents	34,185	(12,929)
Cash and cash equivalents, beginning of period	50,986	69,697
Cash and cash equivalents, end of period	85,171	56,768
Supplemental disclosures of cash flow information
Cash paid for income taxes	34	112
Noncash investing activities
Acquisition of finance leases	114	28
Amounts unpaid for purchases of property and equipment	1,899	2,394
Stock-based compensation capitalized to property and equipment, net	$ 47	$ 142

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Feb. 28, 2025	Nov. 30, 2024	Feb. 29, 2024	Nov. 30, 2023	Feb. 28, 2025	Feb. 29, 2024
Pay vs Performance Disclosure
Net Income (Loss)	$ (3,781)	$ (961)	$ (998)	$ (2,047)	$ (4,742)	$ (3,045)

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Insider Trading Arrangements	3 Months Ended
	Feb. 28, 2025
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Organization and Basis of Presentation

6 Months Ended

Feb. 28, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

Note 1. Organization and Basis of Presentation

Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept that provides guests with a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model, which the Company refers to as the “Kura Experience.” Kura Sushi encourages healthy lifestyles by serving freshly prepared Japanese cuisine using high-quality ingredients that are free from artificial seasonings, sweeteners, colorings, and preservatives. Kura Sushi aims to make quality Japanese cuisine accessible to its guests across the United States through affordable prices and an inviting atmosphere. “Kura Sushi USA,” “Kura Sushi,” “Kura,” “our” and the “Company” refer to Kura Sushi USA, Inc. unless expressly indicated or the context otherwise requires.

Follow-On Offering

On November 13, 2024, the Company completed an underwritten public offering of common stock pursuant to the Company’s universal shelf registration statement on Form S-3, selling an aggregate of 800,328 shares of Class A common stock, including the exercise in full of the underwriters’ option to purchase 104,390 additional shares, at the price of $85.00 per share less an underwriting discount of $4.25 per share. The Company received aggregate net proceeds of $64.4 million after deducting the underwriting discounts and commissions and offering expenses payable by the Company. The proceeds are to be used for general corporate purposes, including capital expenditures, working capital, and other business purposes. No payments were made by the Company to directors, officers or persons owning 10% or more of the Company’s common stock or to their associates, or to the Company’s affiliates.

Basis of Presentation

The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2024.

The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2024. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the fiscal year ending August 31, 2025 or for any other future annual or interim period.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation.

Fiscal Year

The Company’s fiscal year begins on September 1 and ends on August 31, and references made to “fiscal year 2025” and “fiscal year 2024” refer to the Company’s fiscal years ending August 31, 2025 and ended August 31, 2024, respectively.

Use of Estimates

Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented.

Significant items subject to such estimates include asset retirement obligations, stock-based compensation, the useful lives of assets, the assessment of the recoverability of long-lived assets, and income taxes. The Company evaluates its estimates and

assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions.

Long-Term Investments

Long-term investments consist of long-term U.S. Government Agency debt securities. The Company considers all investments with an original maturity date greater than one year as long-term investments. The carrying value of the long-term investments is equivalent to their amortized cost basis. As of February 28, 2025 and August 31, 2024, long-term investments were $15.1 million and none, respectively. The Company classifies the long-term U.S. Government Agency debt securities as held-to-maturity. As of February 28, 2025, the Company’s holds a portfolio of held to maturity debt securities with an amortized cost basis of $15.1 million, a fair value of $15.0 million and gross unrealized holding losses of $0.1 million. Based on the evaluation of credit risk factors guaranteed by the U.S. government, the Company has concluded that an allowance for credit losses is unnecessary for its long-term investments.

Recently Issued Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Disaggregation of Income Statement Expenses”, which requires public companies to disaggregate key expense categories such as inventory purchases, employee compensation and depreciation in their financial statements. In January 2025, the FASB issued ASU 2025-01 “Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures- Clarifying the Effective Date”, which amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company expects to adopt the guidance in our annual report on Form 10-K for the fiscal year ending August 31, 2028. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid and effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company expects to adopt the guidance in our annual report on Form 10-K for the fiscal year ending August 31, 2026. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance in this update is effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company expects to adopt the guidance in our annual report on Form 10-K for the fiscal year ending August 31, 2025. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures.

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Balance Sheet Components

6 Months Ended

Feb. 28, 2025

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Note 2. Balance Sheet Components

Accounts and Other Receivables

	February 28, 2025		August 31, 2024
	(amounts in thousands)
Lease receivables	$	1,853	$	1,701
Credit card and other receivables		1,851		2,872
Total accounts and other receivables	$	3,704	$	4,573

Property and Equipment - net

	February 28, 2025			August 31, 2024
	(amounts in thousands)
Leasehold improvements	$	117,611		$	100,345
Lease assets		6,135			6,108
Furniture and fixtures		60,911			50,951
Computer equipment		4,286			3,714
Vehicles		273			243
Software		1,017			1,017
Construction in progress		9,211			15,080
Property and equipment – gross		199,444			177,458
Less: accumulated depreciation and amortization		(45,367	)		(38,869	)
Total property and equipment – net	$	154,077		$	138,589

Depreciation and amortization expense for property and equipment was $3.4 million and $2.8 million for the three months ended February 28, 2025 and February 29, 2024, respectively, and was $6.6 million and $5.4 million for the six months ended February 28, 2025 and February 29, 2024, respectively.

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Leases

6 Months Ended

Feb. 28, 2025

Leases [Abstract]

Leases

Note 3. Leases

The Company has operating and finance leases for its corporate offices, restaurant locations, office equipment, kitchen equipment and automobiles. The Company’s finance leases are not material. The Company’s leases have remaining lease terms of less than 1 year to 30 years, some of which include options to extend the leases.

Lease related costs recognized in the condensed statements of operations and comprehensive loss are as follows:

		Three Months Ended				Six Months Ended
		February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
		(amounts in thousands)
Operating lease cost	Classification
Operating lease cost	Occupancy and related expenses, other costs and general and administrative expenses	$	4,031	$	3,237	$	7,835	$	6,298
Variable lease cost	Occupancy and related expenses, and general and administrative expenses		1,030		724		2,021		1,575
Total operating lease cost		$	5,061	$	3,961	$	9,856	$	7,873

Supplemental disclosures of cash flow information related to leases are as follows:

	Six Months Ended
	February 28, 2025		February 29, 2024
	(amounts in thousands)
Operating cash flows paid for operating lease liabilities	$	6,581	$	4,954
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$	19,496	$	11,893

As of February 28, 2025, the Company had an additional $25.0 million of operating lease liabilities related to restaurants for which the Company had not yet taken possession. Subsequent to February 28, 2025, the Company entered into additional operating leases related to restaurants for which the Company has not yet taken possession. The lease liabilities associated with these leases are $22.6 million and expected to commence in fiscal year 2025 and 2026 with lease terms of up to 20 years.

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Related Party Transactions

6 Months Ended

Feb. 28, 2025

Related Party Transactions [Abstract]

Related Party Transactions

Note 4. Related Party Transactions

Kura Sushi, Inc. (“Kura Japan”) is the majority stockholder of the Company and is incorporated and headquartered in Japan. In August 2019, the Company entered into a Shared Services Agreement with Kura Japan, pursuant to which Kura Japan provides the Company with certain strategic, operational and other support services, including assigning certain employees to work for the Company as expatriates to provide support to the Company’s operations, sending its employees to the Company on a short-term basis to provide support for the opening of new restaurants or renovation of existing restaurants, and providing the Company with certain supplies, parts and equipment for use in the Company’s restaurants. In addition, the Company has agreed to continue to provide Kura Japan with certain translational support services and market research. In exchange for such services, supplies, parts and equipment, the parties pay fees to each other as set forth under the Shared Services Agreement. A right of setoff is not required; however, from time to time, either party will net settle transactions as needed. Purchases of administrative supplies, expatriate salaries and travel and other administrative expenses payable to Kura Japan are included in general and administrative expenses in the accompanying statements of operations and comprehensive loss. Purchases of equipment from Kura Japan are included in property and equipment in the accompanying balance sheets.

In August 2019, the Company entered into an Amended and Restated Exclusive License Agreement (the “License Agreement”) with Kura Japan. Pursuant to the License Agreement, the Company pays Kura Japan a royalty fee of 0.5% of the Company’s net sales in exchange for an exclusive, royalty-bearing license for the use of certain of Kura Japan’s intellectual property rights, including, but not limited to, Kura Japan’s trademarks for “Kura Sushi,” “Mr. Fresh” and “Kura Revolving Sushi Bar,” and patents for a food management system and the Mr. Fresh protective dome, among other intellectual property rights necessary to continue operation of the Company’s restaurants. Royalty payments to Kura Japan are included in other costs at the restaurant level in the accompanying condensed statements of operations and comprehensive income loss.

On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, as amended, to provide the Company a revolving credit line of $45.0 million (as amended, the “Revolving Credit Agreement”). For additional information, see “Note 6. Debt.”

Balances with Kura Japan are as follows:

	February 28, 2025		August 31, 2024
	(amounts in thousands)
Due from affiliate	$	14	$	166
Due to affiliate	$	816	$	373

Reimbursements and other payments by the Company to Kura Japan were as follows:

	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
	(amounts in thousands)
Related party transactions:
Expatriate salaries expense	$	27	$	48	$	56	$	91
Royalty payments		325		287		647		545
Travel and other administrative expenses		1		—		43		5
Purchases of equipment		1,148		797		2,412		1,437
Total related party transactions	$	1,501	$	1,132	$	3,158	$	2,078

Reimbursements by Kura Japan to the Company were $43 thousand and $65 thousand for the three months ended February 28, 2025 and February 29, 2024, respectively and were $230 thousand and $222 thousand for the six months ended February 28, 2025 and February 29, 2024, respectively. The reimbursements were primarily for travel, professional fees and other administrative expenses.

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Stock-based Compensation

6 Months Ended

Feb. 28, 2025

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

Note 5. Stock-based Compensation

The following table summarizes the stock option activity under the Company’s 2018 Incentive Compensation Plan, as amended and restated (the “Stock Incentive Plan”):

	Options Outstanding
	Number of Shares Underlying Outstanding Options			Weighted Average Exercise Price Per Share
Outstanding — August 31, 2024		610,514		$	41.11
Granted		2,195		$	77.53
Exercised		(11,006	)	$	44.84
Cancelled/forfeited		(5,919	)	$	56.32
Outstanding — November 30, 2024		595,784		$	41.03
Granted		38,457		$	80.61
Exercised		(13,581	)	$	29.69
Cancelled/forfeited		(6,177	)	$	73.93
Outstanding — February 28, 2025		614,483		$	43.42

The following table summarizes the restricted stock unit (“RSU”) activity under the Stock Incentive Plan:

	Number of Shares Underlying Outstanding RSU			Weighted Average Grant Date  Fair Value
Outstanding — August 31, 2024		36,120		$	84.01
Granted		—			—
Vested		—			—
Cancelled/forfeited		(873	)	$	81.89
Outstanding — November 30, 2024		35,247		$	84.06
Granted		33,021		$	80.00
Vested		(10,499	)	$	81.11
Cancelled/forfeited		(1,616	)	$	88.44
Outstanding — February 28, 2025		56,153		$	82.10

During the three months ended February 28, 2025, the Company granted 8,724 performance restricted stock units (“PSUs”) with a three-year performance vesting period and a weighted average grant date fair value of $80.00.

The total stock-based compensation recognized under the Stock Incentive Plan in the condensed statements of operations and comprehensive loss is as follows:

	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
	(amounts in thousands)
Restaurant-level stock-based compensation included in labor and related costs	$	199	$	156	$	378	$	303
Corporate-level stock-based compensation included in general and administrative expenses		882		810		1,829		1,669
Stock-based compensation, net of amounts capitalized		1,081		966		2,207		1,972
Amount capitalized to property and equipment - net		21		114		47		142
Total stock-based compensation	$	1,102	$	1,080	$	2,254	$	2,114

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Debt

6 Months Ended

Feb. 28, 2025

Debt Disclosure [Abstract]

Debt

Note 6. Debt

On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, as amended, establishing a $45.0 million revolving credit line for the Company. The maturity date for each advance is 60 months from the date of disbursement and the last day of the period of availability for advances is April 10, 2025. The Revolving Credit Note under the Revolving Credit Agreement has an interest rate for advances (made on or after April 10, 2021) fixed at 130% of the Annual Compounding Long-Term Applicable Federal Rate (“AFR”) on the date such advance is made. There are no financial covenants under the Revolving Credit Agreement with which the Company must comply.

As of February 28, 2025 and August 31, 2024, the Company had no outstanding balance and $45.0 million of availability remaining under the Revolving Credit Agreement. For additional information, see “Note 4. Related Party Transactions.”

On April 4, 2025, the Company and Kura Japan entered into a Third Amendment to Revolving Credit Agreement (the “Third Amendment”) to extend the last day of the period of availability for the advances under the credit line from April 10, 2025 to April 10, 2028. In connection with the Third Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the Third Amendment.

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Loss Per Share

6 Months Ended

Feb. 28, 2025

Earnings Per Share [Abstract]

Loss Per Share

Note 7. Loss Per Share

The net loss per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the loss for the year had been distributed. As the liquidation and dividend rights for Class A and Class B common stock are identical, the net loss attributable to all common stockholders is allocated on a proportionate basis.

The following table sets forth the computation of the Company’s basic and diluted net loss per share:

	Three Months Ended												Six Months Ended
	February 28, 2025						February 29, 2024						February 28, 2025						February 29, 2024
	Class A			Class B			Class A			Class B			Class A			Class B			Class A			Class B
	(amounts in thousands, except per share data)
Net loss attributable to common stockholders	$	(3,468	)	$	(313	)	$	(909	)	$	(89	)	$	(4,338	)	$	(404	)	$	(2,772	)	$	(273	)
Weighted average common shares outstanding – basic		11,073			1,000			10,179			1,000			10,737			1,000			10,162			1,000
Dilutive effect of stock-based awards		—			—			—			—			—			—			—			—
Weighted average common shares outstanding – diluted		11,073			1,000			10,179			1,000			10,737			1,000			10,162			1,000
Net loss per share attributable to common stockholders – basic	$	(0.31	)	$	(0.31	)	$	(0.09	)	$	(0.09	)	$	(0.40	)	$	(0.40	)	$	(0.27	)	$	(0.27	)
Net loss per share attributable to common stockholders – diluted	$	(0.31	)	$	(0.31	)	$	(0.09	)	$	(0.09	)	$	(0.40	)	$	(0.40	)	$	(0.27	)	$	(0.27	)

The Company computes basic loss per common share using net loss and the weighted average number of common shares outstanding during the period, and computes diluted loss per common share using net loss and the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include dilutive outstanding employee stock options and restricted stock units.

For the three and six months ended February 28, 2025, there were 679 thousand shares of common stock subject to outstanding employee stock options, RSUs and PSUs that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive. For the three and six months ended February 29, 2024 , there were 678 thousand shares of common stock subject to outstanding employee stock options and RSUs that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive.

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Commitments and Contingencies

6 Months Ended

Feb. 28, 2025

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8. Commitments and Contingencies

On January 19, 2024, two former employees initiated arbitration against the Company. Subsequently, on February 26, 2024, three additional former employees initiated a separate arbitration against the Company. Both sets of claimants allege violations of the Fair Labor Standards Act (“FLSA”) and violations of certain Washington, D.C. wage laws. In both arbitrations, claimants purported to raise collective claims on behalf of other similarly situated employees and former employees. In August 2024, the Company settled the claims with these five former employees, as well as 58 other current and former employees asserting similar claims (some under the laws of Pennsylvania, Virginia and Massachusetts), for approximately $3.9 million. Since that time, other current and former employees have asserted claims under the FLSA and applicable state laws (including Pennsylvania, New Jersey and Massachusetts) through counsel. In October 2024, the Company agreed to settle those claims for approximately $1.2 million.

The Company expensed $5.1 million related to these matters within general and administrative expenses in the condensed statements of operations and comprehensive loss and paid $3.9 million during the fiscal year ended August 31, 2024. The Company paid the remaining accrued liability of $1.2 million related to these matters in October 2024. In February 2025, the Company agreed to settle additional claims for approximately $2.1 million, which was paid in March 2025.

The Company is involved from time to time in various legal proceedings that arise in the ordinary course of business, including but not limited to commercial disputes, environmental matters, employee related claims, intellectual property disputes and litigation in connection with transactions, including acquisitions and divestitures.

In the opinion of management, the Company does not believe that such litigation, claims, and administrative proceedings will have a material adverse effect on its business, financial position, results of operations or cash flows. However, a significant increase in the number of these claims or an increase in amounts owing under successful claims, including the putative class action referenced above, could materially and adversely affect its business, financial condition, results of operations or cash flows. The Company records a liability when a loss is considered probable, and the amount can be reasonably estimated.

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Income Taxes

6 Months Ended

Feb. 28, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 9. Income Taxes

The Company recorded an income tax expense of $38 thousand and $50 thousand for the three months ended February 28, 2025 and February 29, 2024, respectively and income tax expense of $77 thousand and $88 thousand for the six months ended February 28, 2025 and February 29, 2024, respectively. The Company’s effective tax rates for the three and six months ended February 28, 2025 substantially differed from the federal statutory tax rate of 21% primarily due to a valuation allowance for the Company’s deferred tax assets and permanent difference related to employer tip credit.

The Company continually monitors and performs an assessment of the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets using a “more likely than not” standard. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Based on the Company’s review of this evidence, management determined that a full valuation allowance against all of the Company’s net deferred tax assets at February 28, 2025 was appropriate.

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Fair Value Measurements

6 Months Ended

Feb. 28, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 10. Fair Value Measurements

The following table sets forth the Company’s assets measured at fair value on a recurring basis as of February 28, 2025.

	Level 1		Level 2		Level 3		Total
	(amounts in thousands)
Assets:
U.S. Government Agency debt securities	$	—	$	15,011	$	—	$	15,011
Total assets at fair value	$	—	$	15,011	$	—	$	15,011

The Company’s cash and cash equivalents include cash on hand, deposits in banks, certificates of deposits and money market funds. Due to their short-term nature, the carrying amounts reported in the accompanying balance sheets approximate the fair value of cash and cash equivalents. The fair value of our U.S. Government Agency debt securities are considered using Level 2 inputs of the fair value hierarchy. Level 2 inputs are based on market data that include factors such as interest rates, market and pricing activity and other market-based valuation techniques.

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Organization and Basis of Presentation (Policies)

6 Months Ended

Feb. 28, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2024.

The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2024. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the fiscal year ending August 31, 2025 or for any other future annual or interim period.

Reclassifications

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation.

Fiscal Year

Fiscal Year

The Company’s fiscal year begins on September 1 and ends on August 31, and references made to “fiscal year 2025” and “fiscal year 2024” refer to the Company’s fiscal years ending August 31, 2025 and ended August 31, 2024, respectively.

Use of Estimates

Use of Estimates

Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented.

Significant items subject to such estimates include asset retirement obligations, stock-based compensation, the useful lives of assets, the assessment of the recoverability of long-lived assets, and income taxes. The Company evaluates its estimates and

assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions.

Long-Term Investments

Long-Term Investments

Long-term investments consist of long-term U.S. Government Agency debt securities. The Company considers all investments with an original maturity date greater than one year as long-term investments. The carrying value of the long-term investments is equivalent to their amortized cost basis. As of February 28, 2025 and August 31, 2024, long-term investments were $15.1 million and none, respectively. The Company classifies the long-term U.S. Government Agency debt securities as held-to-maturity. As of February 28, 2025, the Company’s holds a portfolio of held to maturity debt securities with an amortized cost basis of $15.1 million, a fair value of $15.0 million and gross unrealized holding losses of $0.1 million. Based on the evaluation of credit risk factors guaranteed by the U.S. government, the Company has concluded that an allowance for credit losses is unnecessary for its long-term investments.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Disaggregation of Income Statement Expenses”, which requires public companies to disaggregate key expense categories such as inventory purchases, employee compensation and depreciation in their financial statements. In January 2025, the FASB issued ASU 2025-01 “Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures- Clarifying the Effective Date”, which amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company expects to adopt the guidance in our annual report on Form 10-K for the fiscal year ending August 31, 2028. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid and effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company expects to adopt the guidance in our annual report on Form 10-K for the fiscal year ending August 31, 2026. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance in this update is effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company expects to adopt the guidance in our annual report on Form 10-K for the fiscal year ending August 31, 2025. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures.

Follow-On Offering

Follow-On Offering

On November 13, 2024, the Company completed an underwritten public offering of common stock pursuant to the Company’s universal shelf registration statement on Form S-3, selling an aggregate of 800,328 shares of Class A common stock, including the exercise in full of the underwriters’ option to purchase 104,390 additional shares, at the price of $85.00 per share less an underwriting discount of $4.25 per share. The Company received aggregate net proceeds of $64.4 million after deducting the underwriting discounts and commissions and offering expenses payable by the Company. The proceeds are to be used for general corporate purposes, including capital expenditures, working capital, and other business purposes. No payments were made by the Company to directors, officers or persons owning 10% or more of the Company’s common stock or to their associates, or to the Company’s affiliates.

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Balance Sheet Components (Tables)

6 Months Ended

Feb. 28, 2025

Property, Plant and Equipment, Net [Abstract]

Schedule of Accounts and Other Receivables

Accounts and Other Receivables

	February 28, 2025		August 31, 2024
	(amounts in thousands)
Lease receivables	$	1,853	$	1,701
Credit card and other receivables		1,851		2,872
Total accounts and other receivables	$	3,704	$	4,573

Schedule of Property and Equipment - Net

Property and Equipment - net

	February 28, 2025			August 31, 2024
	(amounts in thousands)
Leasehold improvements	$	117,611		$	100,345
Lease assets		6,135			6,108
Furniture and fixtures		60,911			50,951
Computer equipment		4,286			3,714
Vehicles		273			243
Software		1,017			1,017
Construction in progress		9,211			15,080
Property and equipment – gross		199,444			177,458
Less: accumulated depreciation and amortization		(45,367	)		(38,869	)
Total property and equipment – net	$	154,077		$	138,589

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Leases (Tables)

6 Months Ended

Feb. 28, 2025

Leases [Abstract]

Summary of Lease Related Costs

Lease related costs recognized in the condensed statements of operations and comprehensive loss are as follows:

		Three Months Ended				Six Months Ended
		February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
		(amounts in thousands)
Operating lease cost	Classification
Operating lease cost	Occupancy and related expenses, other costs and general and administrative expenses	$	4,031	$	3,237	$	7,835	$	6,298
Variable lease cost	Occupancy and related expenses, and general and administrative expenses		1,030		724		2,021		1,575
Total operating lease cost		$	5,061	$	3,961	$	9,856	$	7,873

Summary of Supplemental Disclosures of Cash Flow Information Related to Leases

Supplemental disclosures of cash flow information related to leases are as follows:

	Six Months Ended
	February 28, 2025		February 29, 2024
	(amounts in thousands)
Operating cash flows paid for operating lease liabilities	$	6,581	$	4,954
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$	19,496	$	11,893

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Related Party Transactions (Tables)

6 Months Ended

Feb. 28, 2025

Related Party Transactions [Abstract]

Schedule of Related Party Transactions Due to and from Affiliates

Balances with Kura Japan are as follows:

	February 28, 2025		August 31, 2024
	(amounts in thousands)
Due from affiliate	$	14	$	166
Due to affiliate	$	816	$	373

Schedule of Related Party Reimbursements and Other Payments

Reimbursements and other payments by the Company to Kura Japan were as follows:

	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
	(amounts in thousands)
Related party transactions:
Expatriate salaries expense	$	27	$	48	$	56	$	91
Royalty payments		325		287		647		545
Travel and other administrative expenses		1		—		43		5
Purchases of equipment		1,148		797		2,412		1,437
Total related party transactions	$	1,501	$	1,132	$	3,158	$	2,078

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Stock-based Compensation (Tables)

6 Months Ended

Feb. 28, 2025

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity under Stock Incentive Plan

The following table summarizes the stock option activity under the Company’s 2018 Incentive Compensation Plan, as amended and restated (the “Stock Incentive Plan”):

	Options Outstanding
	Number of Shares Underlying Outstanding Options			Weighted Average Exercise Price Per Share
Outstanding — August 31, 2024		610,514		$	41.11
Granted		2,195		$	77.53
Exercised		(11,006	)	$	44.84
Cancelled/forfeited		(5,919	)	$	56.32
Outstanding — November 30, 2024		595,784		$	41.03
Granted		38,457		$	80.61
Exercised		(13,581	)	$	29.69
Cancelled/forfeited		(6,177	)	$	73.93
Outstanding — February 28, 2025		614,483		$	43.42

Summary of Restricted Stock Unit (RSU) Activity Under Stock Incentive Plan

The following table summarizes the restricted stock unit (“RSU”) activity under the Stock Incentive Plan:

	Number of Shares Underlying Outstanding RSU			Weighted Average Grant Date  Fair Value
Outstanding — August 31, 2024		36,120		$	84.01
Granted		—			—
Vested		—			—
Cancelled/forfeited		(873	)	$	81.89
Outstanding — November 30, 2024		35,247		$	84.06
Granted		33,021		$	80.00
Vested		(10,499	)	$	81.11
Cancelled/forfeited		(1,616	)	$	88.44
Outstanding — February 28, 2025		56,153		$	82.10

During the three months ended February 28, 2025, the Company granted 8,724 performance restricted stock units (“PSUs”) with a three-year performance vesting period and a weighted average grant date fair value of $80.00.

Summary of Stock Based Compensation Recognized under Stock Incentive Plan

The total stock-based compensation recognized under the Stock Incentive Plan in the condensed statements of operations and comprehensive loss is as follows:

	Three Months Ended				Six Months Ended
	February 28, 2025		February 29, 2024		February 28, 2025		February 29, 2024
	(amounts in thousands)
Restaurant-level stock-based compensation included in labor and related costs	$	199	$	156	$	378	$	303
Corporate-level stock-based compensation included in general and administrative expenses		882		810		1,829		1,669
Stock-based compensation, net of amounts capitalized		1,081		966		2,207		1,972
Amount capitalized to property and equipment - net		21		114		47		142
Total stock-based compensation	$	1,102	$	1,080	$	2,254	$	2,114

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Loss Per Share (Tables)

6 Months Ended

Feb. 28, 2025

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of the Company’s basic and diluted net loss per share:

	Three Months Ended												Six Months Ended
	February 28, 2025						February 29, 2024						February 28, 2025						February 29, 2024
	Class A			Class B			Class A			Class B			Class A			Class B			Class A			Class B
	(amounts in thousands, except per share data)
Net loss attributable to common stockholders	$	(3,468	)	$	(313	)	$	(909	)	$	(89	)	$	(4,338	)	$	(404	)	$	(2,772	)	$	(273	)
Weighted average common shares outstanding – basic		11,073			1,000			10,179			1,000			10,737			1,000			10,162			1,000
Dilutive effect of stock-based awards		—			—			—			—			—			—			—			—
Weighted average common shares outstanding – diluted		11,073			1,000			10,179			1,000			10,737			1,000			10,162			1,000
Net loss per share attributable to common stockholders – basic	$	(0.31	)	$	(0.31	)	$	(0.09	)	$	(0.09	)	$	(0.40	)	$	(0.40	)	$	(0.27	)	$	(0.27	)
Net loss per share attributable to common stockholders – diluted	$	(0.31	)	$	(0.31	)	$	(0.09	)	$	(0.09	)	$	(0.40	)	$	(0.40	)	$	(0.27	)	$	(0.27	)

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Fair Value Measurements (Tables)

6 Months Ended

Feb. 28, 2025

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value on a Recurring Basis

The following table sets forth the Company’s assets measured at fair value on a recurring basis as of February 28, 2025.

	Level 1		Level 2		Level 3		Total
	(amounts in thousands)
Assets:
U.S. Government Agency debt securities	$	—	$	15,011	$	—	$	15,011
Total assets at fair value	$	—	$	15,011	$	—	$	15,011

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Organization and Basis of Presentation - Additional Information (Details) - USD ($)		3 Months Ended	6 Months Ended
	Nov. 13, 2024	Nov. 30, 2024	Feb. 28, 2025	Aug. 31, 2024
Organization and Basis of Presentation [Line Items]
Long-term investments			$ 15,106,000	$ 0
Held to maturity debt securities with an amortized cost basis			15,100,000
Held to maturity debt securities with an amortized cost basis, fair value			15,000,000
Gross unrealized holding losses			$ (100,000)
Class A | Follow-On Offering
Organization and Basis of Presentation [Line Items]
Shares issued	800,328
Proceeds from offering	$ 64,400,000
Payments to directors, officers or persons owning 10% or more of common stock to associates or affiliates	$ 0
Percentage of common stock owned by directors, officers or persons	10.00%
Class A | Underwrites | Follow-On Offering
Organization and Basis of Presentation [Line Items]
Sale of stock, price per share	$ 85
Underwriting discount per share	$ 4.25
Class A | Common Stock
Organization and Basis of Presentation [Line Items]
Issuance of common stock in connection with follow-on public offering, net of underwriter discounts and issuance costs, shares		800
Class A | Common Stock | Follow-On Offering
Organization and Basis of Presentation [Line Items]
Issuance of common stock in connection with follow-on public offering, net of underwriter discounts and issuance costs, shares	104,390

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Balance Sheet Components - Schedule of Accounts and Other Receivables (Details) - USD ($) $ in Thousands	Feb. 28, 2025	Aug. 31, 2024
Receivables Net Current [Line Items]
Accounts and other receivables	$ 3,704	$ 4,573
Lease Receivables
Receivables Net Current [Line Items]
Accounts and other receivables	1,853	1,701
Credit Card and Other Receivables
Receivables Net Current [Line Items]
Accounts and other receivables	$ 1,851	$ 2,872

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Balance Sheet Components - Schedule of Property and Equipment - Net (Details) - USD ($) $ in Thousands	Feb. 28, 2025	Aug. 31, 2024
Property Plant And Equipment [Line Items]
Property and equipment - gross	$ 199,444	$ 177,458
Less: accumulated depreciation and amortization	(45,367)	(38,869)
Total property and equipment – net	154,077	138,589
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment - gross	117,611	100,345
Lease Assets
Property Plant And Equipment [Line Items]
Property and equipment - gross	6,135	6,108
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment - gross	60,911	50,951
Computer Equipment
Property Plant And Equipment [Line Items]
Property and equipment - gross	4,286	3,714
Vehicles
Property Plant And Equipment [Line Items]
Property and equipment - gross	273	243
Software
Property Plant And Equipment [Line Items]
Property and equipment - gross	1,017	1,017
Construction in Progress
Property Plant And Equipment [Line Items]
Property and equipment - gross	$ 9,211	$ 15,080

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Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2025	Feb. 29, 2024	Feb. 28, 2025	Feb. 29, 2024
Property, Plant and Equipment, Net [Abstract]
Depreciation and amortization expenses	$ 3,400	$ 2,800	$ 6,596	$ 5,381

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Leases - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Feb. 28, 2025	Mar. 01, 2025
Lessee Lease Description [Line Items]
Operating and finance leases, remaining lease start range terms description	less than 1 year
Operating lease liability not yet commenced, liability	$ 25.0
Option to extend, existence, lease liabilities not yet commenced, operating lease	true
Maximum
Lessee Lease Description [Line Items]
Operating and finance leases, remaining lease terms	30 years
Subsequent Event
Lessee Lease Description [Line Items]
Operating lease liability not yet commenced, liability		$ 22.6
Subsequent Event | Maximum
Lessee Lease Description [Line Items]
Operating lease liabilities not yet commenced, lease term		20 years

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Leases - Summary of Lease Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2025	Feb. 29, 2024	Feb. 28, 2025	Feb. 29, 2024
Operating lease cost
Operating lease cost	$ 4,031	$ 3,237	$ 7,835	$ 6,298
Variable lease cost	1,030	724	2,021	1,575
Total operating lease cost	$ 5,061	$ 3,961	$ 9,856	$ 7,873

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Leases - Summary of Supplemental Disclosures of Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Feb. 28, 2025	Feb. 29, 2024
Leases [Abstract]
Operating cash flows paid for operating lease liabilities	$ 6,581	$ 4,954
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$ 19,496	$ 11,893

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Related Party Transactions - Additional Information (Details) - Kura Japan - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Aug. 31, 2019	Feb. 28, 2025	Feb. 29, 2024	Feb. 28, 2025	Feb. 29, 2024	Apr. 10, 2020
Professional Fees, Travel and Other Administrative Expenses
Related Party Transaction [Line Items]
Reimbursements by related party		$ 43	$ 65	$ 230	$ 222
Revolving Credit Facility Agreement | COVID-19
Related Party Transaction [Line Items]
Credit facility maximum borrowing capacity						$ 45,000
Amended and Restated Exclusive License Agreement
Related Party Transaction [Line Items]
Royalty fee of net sales	0.50%

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Related Party Transactions - Schedule of Related Party Transactions Due to and from Affiliates (Details) - Kura Japan - USD ($) $ in Thousands	Feb. 28, 2025	Aug. 31, 2024
Related Party Transaction [Line Items]
Due from affiliate	$ 14	$ 166
Due to affiliate	$ 816	$ 373

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Related Party Transactions - Schedule of Related Party Reimbursements and Other Payments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2025	Feb. 29, 2024	Feb. 28, 2025	Feb. 29, 2024
Related Party Transaction [Line Items]
Total related party transactions	$ 58,388	$ 50,706	$ 115,476	$ 96,309
Kura Japan
Related Party Transaction [Line Items]
Total related party transactions	1,501	1,132	3,158	2,078
Expatriate Salaries Expense | Kura Japan
Related Party Transaction [Line Items]
Total related party transactions	27	48	56	91
Royalty Payments | Kura Japan
Related Party Transaction [Line Items]
Total related party transactions	325	287	647	545
Travel and Other Administrative Expenses | Kura Japan
Related Party Transaction [Line Items]
Total related party transactions	1		43	5
Purchases of Equipment | Kura Japan
Related Party Transaction [Line Items]
Total related party transactions	$ 1,148	$ 797	$ 2,412	$ 1,437

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Stock-based Compensation - Summary of Stock Option Activity under Stock Incentive Plan (Details) - Stock Incentive Plan - $ / shares	3 Months Ended
	Feb. 28, 2025	Nov. 30, 2024
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options Outstanding, Number of shares underlying outstanding options, Beginning balance	595,784	610,514
Options Outstanding, Number of shares underlying outstanding options, Options granted	38,457	2,195
Options Outstanding, Number of shares underlying outstanding options, Options exercised	(13,581)	(11,006)
Options Outstanding, Number of shares underlying outstanding options, Options cancelled/forfeited	(6,177)	(5,919)
Options Outstanding, Number of shares underlying outstanding options, Ending balance	614,483	595,784
Options Outstanding, Weighted Average Exercise Price Per Share, Beginning balance	$ 41.03	$ 41.11
Options Outstanding, Weighted Average Exercise Price Per Share, Options granted	80.61	77.53
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercised	29.69	44.84
Options Outstanding, Weighted Average Exercise Price Per Share, Options canceled/forfeited	73.93	56.32
Options Outstanding, Weighted Average Exercise Price Per Share, Ending balance	$ 43.42	$ 41.03

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Stock-based Compensation - Summary of Restricted Stock Unit (RSU) Activity Under Stock Incentive Plan (Details) - Stock Incentive Plan - Restricted Stock Units - $ / shares	3 Months Ended
	Feb. 28, 2025	Nov. 30, 2024
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, Beginning balance	35,247	36,120
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, RSUs granted	33,021
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, RSUs vested	(10,499)
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, RSUs cancelled/forfeited	(1,616)	(873)
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, Ending balance	56,153	35,247
Weighted average exercise price per share, RSUs outstanding Beginning	$ 84.06	$ 84.01
Weighted average exercise price per share, RSUs granted	80
Weighted average exercise price per share, RSUs vested	81.11
Weighted average exercise price per share, RSUs cancelled/forfeited	88.44	81.89
Weighted average exercise price per share, RSUs outstanding Endining	$ 82.1	$ 84.06

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Stock-based Compensation - Additional Information (Details)	3 Months Ended
	Feb. 28, 2025 $ / shares shares
Restricted Stock Units | Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance restricted stock units granted | shares	33,021
Performance restricted stock units, weighted average grant date fair value | $ / shares	$ 81.11
Performance Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance restricted stock units granted | shares	8,724
Performance restricted stock units, vesting period	3 years
Performance restricted stock units, weighted average grant date fair value | $ / shares	$ 80

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Stock-based Compensation - Summary of Stock Based Compensation Recognized under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2025	Feb. 29, 2024	Feb. 28, 2025	Feb. 29, 2024
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	$ 1,081	$ 966	$ 2,207	$ 1,972
Total stock-based compensation	1,102	1,080	2,254	2,114
Restaurant-level Stock Based Compensation Included In Labor and Related Costs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	199	156	378	303
Corporate-level Stock Based Compensation Included In General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	882	810	1,829	1,669
Amount Capitalized to Property and Equipment - net
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation cost capitalized to Property and Equipment - net	$ 21	$ 114	$ 47	$ 142

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Debt - Additional Information (Details) - USD ($)	6 Months Ended	12 Months Ended
	Feb. 28, 2025	Aug. 31, 2024	Apr. 10, 2020
Debt Instrument [Line Items]
Revolving credit line interest rate	130.00%
Revolving Credit Facility Agreement
Debt Instrument [Line Items]
Outstanding balance	$ 0	$ 0
Remaining availability under credit agreement	$ 45,000,000	$ 45,000,000
Revolving Credit Facility Agreement | Kura Japan
Debt Instrument [Line Items]
Outstanding borrowings			$ 45,000,000.0

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Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2025	Feb. 29, 2024	Feb. 28, 2025	Feb. 29, 2024
Earnings Per Share Diluted [Line Items]
Weighted average common shares outstanding – basic	12,073	11,179	11,737	11,162
Diluted	12,073	11,179	11,737	11,162
Basic	$ (0.31)	$ (0.09)	$ (0.4)	$ (0.27)
Diluted	$ (0.31)	$ (0.09)	$ (0.4)	$ (0.27)
Class A
Earnings Per Share Diluted [Line Items]
Net loss attributable to common stockholders	$ (3,468)	$ (909)	$ (4,338)	$ (2,772)
Weighted average common shares outstanding – basic	11,073	10,179	10,737	10,162
Diluted	11,073	10,179	10,737	10,162
Basic	$ (0.31)	$ (0.09)	$ (0.4)	$ (0.27)
Diluted	$ (0.31)	$ (0.09)	$ (0.4)	$ (0.27)
Class B
Earnings Per Share Diluted [Line Items]
Net loss attributable to common stockholders	$ (313)	$ (89)	$ (404)	$ (273)
Weighted average common shares outstanding – basic	1,000	1,000	1,000	1,000
Diluted	1,000	1,000	1,000	1,000
Basic	$ (0.31)	$ (0.09)	$ (0.4)	$ (0.27)
Diluted	$ (0.31)	$ (0.09)	$ (0.4)	$ (0.27)

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Loss Per Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2025	Feb. 29, 2024	Feb. 28, 2025	Feb. 29, 2024
Earnings Per Share [Line Items]
Shares of common stock subject to outstanding employee stock options that were excluded from the calculation of diluted income (loss) per share	679	678	679	678

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Commitments and Contingencies - Additional Information (Details) $ in Millions			1 Months Ended			12 Months Ended
	Feb. 26, 2024 Employees	Jan. 19, 2024 Employees	Mar. 31, 2025 USD ($)	Oct. 31, 2024 USD ($)	Aug. 31, 2024 USD ($) Employees	Aug. 31, 2024 USD ($)	Feb. 28, 2025 USD ($)
Loss Contingencies [Line Items]
Number of former employees initiated arbitration against company | Employees	3	2			5
Number of other current and former employees asserting claims against company | Employees					58
Settlement amount					$ 3.9
Claims Under FLSA and Applicable State Laws
Loss Contingencies [Line Items]
Settlement amount				$ 1.2
General and Administrative Expenses
Loss Contingencies [Line Items]
Accrued liability paid				$ 1.2		$ 3.9
Accrued expense							$ 5.1
General and Administrative Expenses | Subsequent Event
Loss Contingencies [Line Items]
Accrued liability paid			$ 2.1

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Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2025	Feb. 29, 2024	Feb. 28, 2025	Feb. 29, 2024
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 38	$ 50	$ 77	$ 88
Federal statutory tax rate			21.00%

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Fair Value Measurements - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value Recurring $ in Thousands	Feb. 28, 2025 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 15,011
U.S. Government Agency debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	15,011
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	15,011
Level 2 | U.S. Government Agency debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 15,011