Kura Sushi USA, Inc.

Form Act of 1995. These forward-looking statements are not guarantees of future performance, and therefore you should not put undue reliance on them. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. We refer all of you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition. Also during today's call, we will discuss certain non-GAAP financial measures which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation, nor as a substitute for results prepared in accordance with GAAP, and the reconciliations to comparable GAAP measures are available in our earnings release. With that out of the way, I would like to turn the call over to Jimmy.

Thank you, Ben, and thank you to everyone for joining us today. I'm incredibly proud of what our team achieved during fiscal 2025 as we delivered our strongest class of restaurant openings in recent memory adding a record of 15 new locations. We also successfully managed our corporate G&A expenses, resulting in an annual adjusted EBITDA growth of over 30%. These accomplishments are particularly significant given the volatile consumer environment and the tariff pressures we navigated throughout the year, which have negatively impacted our top-line results and restaurant-level margins. Our team remains resilient, and we continue to believe that our focus on execution has positioned us well for continued growth in fiscal 2026. Total sales for the fiscal fourth quarter was $79.4 million, representing comparable sales growth of 0.2%, led by traffic growth of 0.5%, and partially offset by plus and mix of negative 0.3%. Cost of goods sold as a percentage of sales was 28.4% as compared to the prior year quarter's 28.5%. I am exceptionally proud of our purchasing team who negotiate tirelessly to mitigate higher ingredient costs so we can continue to provide the best value possible for our guests. Labor as a percentage of sales improved by 30 basis points to 31.1% as compared to the prior year period of 31.4%, meeting the expectations for year-over-year improvement for labor in Q4 that we had shared in the previous earnings call. In spite of ongoing labor inflation, we have been able to offset these cost increases through aggressive operational initiatives and system implementations. I have some exciting news on this front that I will discuss shortly. Turning to real estate, We closed fiscal 2025 with three store openings in the fourth quarter, Woodlands, Texas, Salt Lake City, Utah, and Boulder, Colorado. Salt Lake City and Boulder are the first units in their respective markets, and as with every new market we've entered to date, have been a very strong performance. Subsequent to quarter end, we opened three units, Arcadia and Modesto in California, and Freefold, New Jersey. With another six units under construction, the new fiscal year is off to a great start. We expect to open five to six units in the first half of the fiscal year and open the remaining units in the back half of the year. I'm excited to announce we are in the process of introducing status tiers to our reverse program. We're currently performing exploratory research to determine what kind of incentives resonate most strongly with our guests. This marks the first major update to our rewards program since we introduced Punch. We are very excited to take our rewards program to the next level and look forward to keeping you updated on its progress. On system development, we have largely completed the revisions we have been working on for the reservation system. With these updates completed, we expect to begin marketing the reservation system to non-rewards members beginning in the fiscal second quarter. As you may have guessed when I mentioned this earlier, I'm extremely pleased to announce that we have secured commercial use certification for our robotic dishwasher and are currently in the process of installing these machines in eligible restaurants. As a reminder, our initial expectation was that the robotic dishwasher opportunity would be largely limited to new openings is only 5 to 10 restaurants eligible for retrofitting, but now we expect to be able to retrofit approximately 50 restaurants of our existing 82. We expect to have the majority of the retrofit rollout during this fiscal year and to see labor improvements of approximately 50 basis points for restaurants that receive the retrofit. Fiscal year 2025 was defined by its incredible cross-departmental efforts to do everything that we could to mitigate an unfriendly environment. Our commitment to growing corporate profitability remains unabated, as demonstrated by the strides we've made in adjusted EBITDA and adjusted net income. We have made great strides in honing our unit expansion strategies and have built a pipeline that allows us to capitalize on the opportunities represented by previously unexplored smaller DMAs. The efforts by the operations team and their implementation of new systems have created lasting efficiency gains. I am very grateful for all of our team members who generated the good news we get to share at each earnings call. I don't see that changing. Jeff, I'll hand it over to you to discuss our financial results and liquidity.

Thanks, Jimmy. For the fourth quarter, total sales were $79.4 million as compared to $66 million in the prior year period. Comparable restaurant sales performance compared to the prior year period was positive 0.2%, with traffic growth of 0.5% and price and mix of negative 0.3%. Comparable sales in our West Coast market were negative 0.6%, and comparable sales in our Southwest market were positive 1.6%. Effective pricing for the quarter was 3.5%. On November 1st, we took a 3.5% menu price increase, and after lapping prior year increases, our effective price for the first quarter will be 4.5%. Beginning in the first quarter of fiscal 2027, we will no longer be providing regional breakdowns for comparable sales, as regional comps are largely determined by the timing of infills, and we don't believe that they are indicative of overall company trends. Turning now to our costs. Food and beverage costs as a percentage of sales were 28.4% compared to 28.5% in the prior year quarter. During the quarter, we begin to see the impact of tariffs and our cost of goods sold of approximately 70 basis points. Labor and related costs as a percentage of sales were 31.1% as compared to 31.4% in the prior year quarter due to operational efficiencies and pricing partially offset by wage inflation. Occupancy and related expenses as a percentage of sales were 7.1%, compared to the prior year quarter's 7%. Depreciation and amortization expense as a percentage of sales was 4.7%, as compared to the prior year quarter's 4.6%. Other costs as a percentage of sales were 15%, compared to the prior year quarter's 14.4%, due to sales deleverage and higher marketing costs. General and administrative expenses as a percentage of sales were 11.7% as compared to 20.3% in the prior year quarter due to the lapping of litigation costs incurred during the prior fiscal year, partially offset by higher compensation-related expenses. On a full year basis, general and administrative expenses as a percentage of sales were 13.3%, representing a 300 basis point improvement over the prior year's 16.4%. G&A expenses as a percentage of sales, excluding litigation costs for the fourth quarter, were 11.4%, as compared to the prior year quarters, 13.2%. G&A expenses as a percentage of sales, excluding litigation costs for the full year, were 12.5%, as compared to the prior years, 14.1%. And we did not have any impairment charges in the fourth quarter of fiscal 25, as compared to 2.4% in the prior year quarter. Operating income was $1.5 million compared to an operating loss of $5.8 million in the prior year quarter, mainly due to the lower G&A and the impairment expenses just discussed. Income tax expense was $43,000 compared to $19,000 in the prior year quarter. Net income was $2.3 million or 18 cents per share compared to a net loss of $5.2 million or negative 46 cents per share in the prior year quarter. Adjusted net income was $2.5 million or $0.20 per share as compared to adjusted net income of $1 million or $0.09 per share in the prior year quarter. Restaurant-level operating profit as a percentage of sales was 19.8% compared to 20.9% in the prior year quarter. And adjusted EBITDA was $7.4 million as compared to $5.5 million in the prior year quarter. Turning to our cash and investments, at the end of the fiscal fourth quarter, we had $92 million in cash, cash equivalents and investments, and no debt. And lastly, I'd like to provide the following guidance for fiscal year 2026. We expect total sales to be between $330 and $334 million. We expect to open 16 new units, maintaining an annual unit growth rate above 20%. with average net capital expenditures per unit continuing to approximate $2.5 million. We expect general and administrative expenses as a percentage of sales to be between 12% and 12.5%. And lastly, we expect full-year restaurant-level operating profit margins to be approximately 18%. And with that, I'll turn it back over to Jimmy.