Shares of Kura Sushi fell after the company swung to a loss in its latest quarter and reported lower-than-expected sales.
The company also issued an underwhelming sales outlook for the year ahead.
The stock slipped 17%, to $30.65, in premarket trading Friday. Through Thursday's close, shares have lost nearly a third of their value year to date.
The technology-enabled Japanese restaurant chain late Thursday swung to a fiscal fourth-quarter loss of $296,000, or 2 cents a share, compared with a profit of $2.27 million, or 18 cents a share, a year earlier.
Stripping out one-time items, Kura Sushi reported quarterly earnings of 8 cents a share. Analysts polled by FactSet had expected adjusted earnings of 20 cents a share.
Sales climbed 12% to $88.9 million but missed Wall Street models for $90.9 million.
Chief Executive Hajime Uba said Kura Sushi is working to protect its margins as it faces consumer headwinds and tariffs, which are increasing its costs.
The company has offset some of the tariff costs, reducing its labor requirements by leaning on the technological innovation core to its concept, he added.
Looking ahead, Kura Sushi guided for total sales of $376 million to $381 million in its fiscal 2027, below the $384.6 million that analysts were looking for.
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