Kura Sushi USA Inc. (KRUS) PT Lowered to $79 at Citi

Citi analyst Jon Tower lowered the price target on Kura Sushi USA Inc. (NASDAQ: KRUS) to $79.00 (from $101.00) while maintaining a Neutral rating.

The analyst comments "Apparently Dragon Ball was not enough to reinvigorate KRUS’s traffic during F3Q, with preliminary results (including +0.6% SSS growth) falling well-short of Street expectations and FY24 revenue guidance that implies pressure has continued into the month of June. Unexpected softness in California (home to ~33% of the company’s stores) was cited as the primary cause for comp softness, which fuel the flames of investor concern regarding how wage rate increases may be impacting broader consumer demand for food away from home in that State. The longer-term opportunity remains appealing (market leader in the $26bn US sushi category), but F3Q sales results/guidance cut is likely to pressure the stock’s multiple in the NT."

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