KURA SUSHI USA, INC. Leases Disclosure
Note 4—Leases
The Company has operating and finance leases for its corporate offices, restaurant locations, kitchen equipment and automobiles. The Company’s finance leases are immaterial. The Company’s leases have remaining lease terms of less than 1 year to 20 years, some of which include options to extend the leases.
Lease related costs recognized in the statements of operations and comprehensive income (loss) for fiscal years 2025, 2024 and 2023 are as follows:
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Fiscal Years Ended August 31, |
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2025 |
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2024 |
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2023 |
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(amounts in thousands) |
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Operating lease cost |
Classification |
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Operating lease cost |
Occupancy and related expenses, other costs and general and administrative expenses |
$ |
16,515 |
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$ |
13,319 |
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$ |
10,203 |
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Variable lease cost |
Occupancy and related expenses, and general and administrative expenses |
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4,522 |
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|
3,574 |
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|
3,176 |
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Total operating lease cost |
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$ |
21,037 |
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$ |
16,893 |
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$ |
13,379 |
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Supplemental balance sheet information related to leases is as follows:
Operating Leases
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As of August 31, |
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2025 |
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2024 |
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Weighted Average Remaining Lease Term (Years) |
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Operating leases |
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16.5 |
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16.5 |
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Weighted Average Discount Rate |
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Operating leases |
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7.2 |
% |
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7.1 |
% |
Supplemental disclosures of cash flow information related to leases are as follows:
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Fiscal Years Ended August 31, |
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2025 |
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2024 |
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(amounts in thousands) |
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Operating cash flows paid for operating lease liabilities |
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$ |
14,008 |
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$ |
10,723 |
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Operating right-of-use assets obtained in exchange |
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$ |
25,532 |
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$ |
25,475 |
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As of August 31, 2025, the Company had an additional $69.7 million of operating leases related to restaurants for which the Company had not yet taken possession. Subsequent to August 31, 2025, the Company entered into three additional operating leases related to restaurants for which the Company has not yet taken possession. The lease liabilities associated with the leases after August 31, 2025 are $14.7 million. The operating leases are expected to commence in fiscal years 2026 and 2027, with lease terms of up to 20 years.
Maturities of lease liabilities are as follows as of August 31, 2025:
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Operating Leases |
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(amounts in thousands) |
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2026 |
|
$ |
13,101 |
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2027 |
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16,070 |
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2028 |
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|
16,538 |
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2029 |
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16,986 |
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2030 |
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17,490 |
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Thereafter |
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225,364 |
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Total lease payments |
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305,549 |
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Less: imputed interest |
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(135,534 |
) |
Present value of lease liabilities |
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$ |
170,015 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 6, 2025 | Showing above |
| 2024 | Nov 8, 2024 | |
| 2023 | Nov 9, 2023 | |
| 2022 | Nov 10, 2022 | |
| 2021 | Nov 12, 2021 | |
| 2020 | Nov 18, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.