KRUS: Kura's Roll Keeps Rolling

(Kura Sushi US Q2 2022 Earnings)

Kura Sushi KRUS 0.00%↑ is a dinky (~$540M market cap) sushi business that I have reported on for a little over one year. The US subsidiary is das kind (German for ‘the child’ because, why not) of a well-capitalised parent with over 450 stores in Japan. It’s a proof of concept venture in a new market, with a tried-and-tested business model, and a parent that provides ample liquidity to its fledging offspring. Sitting at 37 stores nationwide, and aspirations of 300+, it would be audacious to suggest that Kura alter the fabric of the US sushi market like Starbucks did with coffee, McDonalds’ did with obesity, or Subway did by somehow fooling people into believing a foot-long sub was enabling people to ‘eat fresh’. This non-franchised restaurant chain is less aspirational, but with good unit payback periods and a strong runway for growth, it has my interest piqued. That said, the current valuation does not have my mouth watering.

The migration from Japan → America, the backstory, the concept that m…