Kura Sushi's Recent Stock Decline Presents An Opportunity

LEL Investment LLC
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Summary

  • Kura Sushi's stock has dropped by 10% following its Q4 earnings report, contributing to a 50% decline since July.
  • Pessimistic sentiment in the restaurant industry is impacting the valuations of high-growth restaurant companies.
  • Kura Sushi maintains a strong restaurant-level profit margin and has room for growth in the US Japanese restaurant market.

Salmon sushi by wooden chopsticks

xxwp/iStock via Getty Images

Kura Sushi's Earnings and Stock Reaction

Kura Sushi (NASDAQ:KRUS) recently shared its fourth-quarter earnings on November 9th. Following this report, their stock took a bit of a hit, dropping by 10%. This isn't a new trend though; since reaching its high point in July, the

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of KRUS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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