KURA SUSHI USA, INC. Segments Disclosure
Note 13—Segment Information
The Company operates as one reportable segment: company-owned restaurants and in one geographic area: the United States of America. The Company does not have intra-entity sales or transfers. Sales represent sales of food and beverages in restaurants. The , who serves as the Chief Operating Decision Maker (“CODM”), evaluates performance and allocates resources based on sales and operating income (loss). The CODM does not review segment assets at a level different than what is reported in the Company’s Consolidated Balance Sheet.
Reported segment sales and expenses are presented below (in thousands):
|
|
Fiscal Years Ended |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Sales |
|
$ |
282,763 |
|
|
$ |
237,860 |
|
|
$ |
187,429 |
|
Restaurant operating costs: |
|
|
|
|
|
|
|
|
|
|||
Food and beverage costs |
|
|
80,772 |
|
|
|
69,509 |
|
|
|
56,631 |
|
Labor and related costs |
|
|
93,014 |
|
|
|
76,614 |
|
|
|
57,053 |
|
Occupancy and related expenses |
|
|
21,002 |
|
|
|
16,792 |
|
|
|
13,141 |
|
Depreciation and amortization expenses |
|
|
13,598 |
|
|
|
11,362 |
|
|
|
7,422 |
|
Other costs |
|
|
40,943 |
|
|
|
34,060 |
|
|
|
24,405 |
|
Total restaurant operating costs |
|
|
249,329 |
|
|
|
208,337 |
|
|
|
158,652 |
|
General and administrative expenses |
|
|
37,747 |
|
|
|
39,050 |
|
|
|
28,035 |
|
Depreciation and amortization expenses |
|
|
448 |
|
|
|
425 |
|
|
|
410 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
1,553 |
|
|
|
— |
|
Total operating expenses |
|
|
287,524 |
|
|
|
249,365 |
|
|
|
187,097 |
|
Operating income (loss) |
|
|
(4,761 |
) |
|
|
(11,505 |
) |
|
|
332 |
|
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation to net income (loss): |
|
|
|
|
|
|
|
|
|
|||
Other expense (income): |
|
|
|
|
|
|
|
|
|
|||
Interest expense |
|
|
70 |
|
|
|
47 |
|
|
|
69 |
|
Interest income |
|
|
(3,102 |
) |
|
|
(2,915 |
) |
|
|
(1,472 |
) |
Income (loss) before income taxes |
|
|
(1,729 |
) |
|
|
(8,637 |
) |
|
|
1,735 |
|
Income tax expense |
|
|
175 |
|
|
|
167 |
|
|
|
233 |
|
Net income (loss) |
|
$ |
(1,904 |
) |
|
$ |
(8,804 |
) |
|
$ |
1,502 |
|
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.