Kura Sushi NASDAQ:KRUS is aiming to accelerate its US expansion as Japanese restaurant chains increasingly look overseas for growth. CEO Hajime Uba said the company wants to grow its US store count by 20% a year, with locations expected to surpass 100 this year and a longer-term target of about 300 restaurants.
The push comes as competition in conveyor-belt sushi could intensify, with rival Sushiro set to enter the US later this year. Uba said Kura wants to secure key markets before competitors expand, while also broadening its menu with ramen, udon, and Japanese-style fried chicken to appeal to American diners who may not eat raw fish.
Kura's expansion still carries near-term pressure. Its US business posted a net loss of about $1.9 million last year, and tariffs could weigh on margins because more than half of its ingredients come from overseas. Uba said the company may absorb part of the higher costs rather than pass them fully to customers, while expecting the US business to reach operating profitability within one to two years.