Holding Hot Potatoes

(NASDAQ: KRUS) Kura Sushi Q3 2023

Kura Sushi recently surpassed $1 billion in market capitalisation. While the valuation continues to be unhinged, cracks in the health of the business are yet to appear. By all accounts, it continues to fire on all cylinders. With a slight upgrade (+$1.5 million) to 2023 revenue guidance, Kura Sushi is expected to generate $188 million in sales this year; around 194% more than it did in 2019 ($64 million). And with the company’s precarious balance sheet now bolstered for the next few years, the reinvestment runway looks stable. I shared a tweet this week remarking that Kura Sushi has now “doubled-bagged” for me since I purchased it in 2021. The below chart will show that it didn’t come without gut-wrenching volatility.

Koyfin

I say gut-wrenching, but in all honesty, it’s not felt like much of a hot potato for me. I am lazy, and optimise my investing around my life, not the other way around. I tell myself I am not a fan of selling things for the sake of it, and Kura Sushi has never given…