KURA SUSHI USA, INC.
For the period ended Aug 31, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2026 · Filed Nov 5, 2026
KRUS$27.38-26.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2025-08-31; filed 2025-11-06.
0001193125-25-269773
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2026-08-31; filed 2026-11-05.
0001193125-26-449960
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 107 previous paragraphs and 108 current paragraphs.
75 unchanged; 27 reworded; 6 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Ongoing geopolitical events could disrupt energy supplies, global supply chains, and food distribution markets, which may increase inflationary pressures, reduce consumer spending, and adversely affect our business, financial condition, results of operations, and profitability. During fiscal 2026, we implemented menu price increases that partially offset higher operating costs. While the termination of certain International Emergency Economic Powers Act tariffs has reduced some food and beverage cost pressures, our food and beverage costs remain subject to volatility from commodity price fluctuations, supply chain conditions, transportation costs and evolving trade policies, including tariffs. We continue to evaluate sourcing initiatives, operational efficiencies, and pricing actions to mitigate these pressures. However, sustained volatility in food and beverage costs could adversely affect profitability. See “Part I, Item 1A, ‘Risk Factors — Risks Related to Our Operations and Growth Strategy.’”
Current report
General and administrative expenses. General and administrative expenses were $40.6 million for fiscal year 2026 compared to $37.7 million for fiscal year 2025, representing an increase of $2.9 million, or 7.6%. The increase was primarily due to compensation-related costs of $2.1 million, travel expenses of $0.5 million, software licenses of $0.5 million, professional fees of $0.2 million and $0.5 million of other net expenses, partially offset by a net decrease in litigation costs of $0.9 million. As a percentage of sales, general and administrative expenses decreased to 12.4% in fiscal year 2026 from 13.3% in fiscal year 2025, primarily driven by sales leverage of compensation-related costs and litigation costs.
Current report
Impairment and disposal of long-lived assets include an impairment charge related to one restaurant location as a result of its performance and other restaurants’ losses on disposal of equipment.
Current report
Impairment and disposal of long-lived assets include an impairment charge related to one restaurant location as a result of its performance and other restaurants’ losses on disposal of equipment.
Current report
On December 29, 2025, we filed a universal shelf registration statement on Form S-3 (the “Registration Statement”) with the SEC in accordance with the Securities Act of 1933, as amended (the “Securities Act”). The Registration Statement was declared effective on January 7, 2026, and registered Class A common stock, preferred stock, depositary shares, warrants, subscription rights, share purchase contracts, share purchase units, and any combination of the foregoing, for a maximum aggregate offering price of up to $100.0 million, which may be sold from time to time. The terms of any securities offered under the Registration Statement and
Current report
intended use of proceeds will be established at the times of the offerings and will be described in prospectus supplements filed with the SEC at the times of the offerings. The Registration Statement has a three-year term from the date of effectiveness.
Removed paragraphs (5)
Previous report
We have evaluated and will continue to evaluate the impact of import laws and tariffs on our operations. As of August 31, 2025, there was no significant impact on our business, financial condition, results of operations or cash flows. Based on the current economic environment, tariffs are expected to have a considerable impact on our operations in certain areas, such as food and beverage costs, construction and equipment costs and other restaurant operating costs in fiscal year 2026. We have historically used menu price increases to manage profitability in times of inflation or tariff increases, which we expect will partially offset the impact on our operations in fiscal year 2026. See “Part I, Item 1A, “Risk Factors — Risks Related to Our Operations and Growth Strategy”.
Previous report
General and administrative expenses. General and administrative expenses were $37.7 million for fiscal year 2025 compared to $39.1 million for fiscal year 2024, representing a decrease of $1.4 million, or negative 3.3%. This decrease was primarily due to $3.1 million in lower litigation settlement costs and $0.9 million in lower professional fees, partially offset by an increase in compensation-related costs of $2.3 million due to additional headcount and $0.3 million in other costs. As a percentage of sales, general and administrative expenses decreased to 13.3% in fiscal year 2025 from 16.4% in fiscal year 2024, primarily driven by the items mentioned above.
Previous report
Impairment of long-lived assets include losses incurred due to the impairment of property and equipment on one underperforming restaurant location.
Previous report
Impairment of long-lived assets include losses incurred due to the impairment of property and equipment on one underperforming restaurant location.
Previous report
On November 13, 2024, we completed an underwritten public offering of common stock pursuant to our universal shelf registration statement on Form S-3, selling an aggregate of 800,328 shares of Class A common stock, including the exercise in full of the underwriters’ option to purchase 104,390 additional shares, at the price of $85.00 per share less an underwriting discount of $4.25 per share. We received aggregate net proceeds of $64.4 million after deducting the underwriting discounts and commissions and offering expenses payable by us. The proceeds are to be used for general corporate purposes, including capital expenditures, working capital, and other business purposes. No payments were made by us to directors, officers or persons owning 10% or more of our common stock or to their associates, or to our affiliates.
Reworded paragraphs (27)
Previous wording
During fiscal year 2025, we opened 15 restaurants and expanded our restaurant base to 79 restaurants in 22 U.S. states and Washington, DC as of fiscal year end 2025. We expect to open 16 new restaurants in fiscal year 2026 and therefore, we expect our revenue and restaurant operating costs to increase in fiscal year 2026. We also expect our general and administrative expenses to increase on a dollar basis in fiscal year 2026 to support the growth of the company.
Current wording
During fiscal year 2026, we opened 16 restaurants and expanded our restaurant base to 95 restaurants in 24 U.S. states and Washington, DC. We expect to open 17 new restaurants in fiscal year 2027 and therefore, we expect our revenue and restaurant operating costs to increase in fiscal year 2027. We also expect our general and administrative expenses to increase on a dollar basis in fiscal year 2027 to support our continued growth.
Previous wording
Depreciation and amortization expenses. Depreciation and amortization expenses are periodic non-cash charges that consist of depreciation of fixed assets, including equipment and capitalized leasehold improvements. Depreciation is determined using the straight-line method over the assets’ estimated useful lives, ranging from three to 20 years.
Current wording
Depreciation and amortization expenses. Depreciation and amortization expenses are periodic non-cash charges that consist of depreciation of fixed assets, including equipment and capitalized leasehold improvements and definite-lived liquor licenses. Depreciation is determined using the straight-line method over the assets’ estimated useful lives, ranging from two to 20 years.
Previous wording
Impairment of long-lived assets. Impairment of long-lived assets include the resulting charges when facts and circumstances indicate that the carrying amount of an asset may not be fully recoverable. If an indicator of impairment exists, an estimate of the aggregate undiscounted cash flows is compared to the carrying value of the asset. If an asset is determined to be impaired, the loss is recorded as the excess of the carrying amount of the asset over its fair value.
Current wording
Impairment and disposal of long-lived assets. Impairment and disposal of long-lived assets include the resulting charges when facts and circumstances indicate that the carrying amount of an asset may not be fully recoverable, as well as gains or losses associated with the disposal of long-lived assets.
Previous wording
Sales. Sales were $282.8 million for fiscal year 2025 compared to $237.9 million for fiscal year 2024, representing an increase of $44.9 million, or 18.9%. The increase in sales was primarily driven by the sales resulting from 15 new restaurants opened during fiscal year 2025, as well as increases in menu prices during the same period. Comparable restaurant sales decreased 1.3%, consisting of negative traffic of 3.1% and price/mix of 1.8%, for fiscal year 2025 as compared to fiscal year 2024. AUV was $3.9 million for fiscal year 2025 compared to $4.2 million for fiscal year 2024.
Current wording
Sales. Sales were $328.3 million for fiscal year 2026 compared to $282.8 million for fiscal year 2025, representing an increase of $45.5 million, or 16.1%. The increase in sales was primarily driven by the sales resulting from 16 new restaurants opened during fiscal year 2026, as well as increases in menu prices during the same period. Comparable restaurant sales decreased 0.4%, consisting of negative traffic of 4.3% offset by higher price/mix of 3.9%, for fiscal year 2026 as compared to fiscal year 2025. The decrease in traffic is a result of lower consumer spending due to the macroeconomic environment. AUV was $3.8 million for fiscal year 2026 compared to $3.9 million for fiscal year 2025.
Previous wording
Food and beverage costs. Food and beverage costs were $80.8 million for fiscal year 2025 compared to $69.5 million for fiscal year 2024, representing an increase of $11.3 million, or 16.2%. This increase was primarily driven by costs associated with sales from 15 new restaurants opened during fiscal year 2025. As a percentage of sales, food and beverage costs decreased to 28.6% in fiscal year 2025, as compared to 29.2% in fiscal year 2024, primarily due to increases in menu prices and supply chain initiatives, which was partially offset by food cost inflation.
Current wording
Food and beverage costs. Food and beverage costs were $98.6 million for fiscal year 2026 compared to $80.8 million for fiscal year 2025, representing an increase of $17.8 million, or 22.1%. This increase was primarily driven by costs associated with sales from 16 new restaurants opened during fiscal year 2026. As a percentage of sales, food and beverage costs increased to 30.0% in fiscal year 2026, as compared to 28.6% in fiscal year 2025, primarily due to inflationary pressures on certain imported ingredients, including tariff impacts and commodity price inflation, which was partially offset by increases in menu prices.
Previous wording
Labor and related costs. Labor and related costs were $93.0 million for fiscal year 2025 compared to $76.6 million for fiscal year 2024, representing an increase of $16.4 million, or 21.4%. This increase in labor and related costs was primarily driven by additional labor costs incurred from 15 new restaurants opened during fiscal year 2025 coupled with wage rate increases during the same period. As a percentage of sales, labor and related costs increased to 32.9% in fiscal year 2025, compared to 32.2% in fiscal year 2024. The increase in cost as a percentage of sales was primarily due to increases in wage rates subsequent to August 31, 2024, partially offset by increases in menu prices and operational efficiencies.
Current wording
Labor and related costs. Labor and related costs were $101.8 million for fiscal year 2026 compared to $93.0 million for fiscal year 2025, representing an increase of $8.8 million, or 9.5%. This increase in labor and related costs was primarily driven by additional labor costs incurred from 16 new restaurants opened during fiscal year 2026. As a percentage of sales, labor and related costs decreased to 31.0% in fiscal year 2026, compared to 32.9% in fiscal year 2025. The decrease in cost as a percentage of sales was primarily due to initiatives relating to operations such as the reservation system and scheduling, and increases in menu prices, partially offset by low-single digit wage inflation.
Previous wording
Occupancy and related expenses. Occupancy and related expenses were $21.0 million for fiscal year 2025 compared to $16.8 million for fiscal year 2024, representing an increase of $4.2 million, or 25.1%. This increase was primarily a result of additional lease expense incurred with respect to 15 new restaurants that opened during fiscal year 2025. As a percentage of sales, occupancy and other operating expenses remained relatively consistent at 7.4% in fiscal year 2025 and 7.1% in fiscal year 2024.
Current wording
Occupancy and related expenses. Occupancy and related expenses were $26.0 million for fiscal year 2026 compared to $21.0 million for fiscal year 2025, representing an increase of $5.0 million, or 23.7%. This increase was primarily a result of additional lease expense incurred with respect to 16 new restaurants that opened during fiscal year 2026. As a percentage of sales, occupancy and related expenses increased to 7.9% in fiscal year 2026, compared to 7.4% in fiscal year 2025, primarily driven by sales deleverage and incremental pre-opening expenses.
Previous wording
Depreciation and amortization expenses. Depreciation and amortization expenses incurred as part of restaurant operating costs were $13.6 million for fiscal year 2025 compared to $11.4 million for fiscal year 2024, representing an increase of $2.2 million or 19.7%. This increase was primarily due to the depreciation of property and equipment related to the opening of 15 new restaurants in fiscal year 2025. As a percentage of sales, depreciation and amortization expenses at the restaurant-level was 4.8% in both fiscal year 2025 and fiscal year 2024. Depreciation and amortization expenses incurred at the corporate level were $0.4 million for fiscal year 2025 and fiscal year 2024, and as a percentage of sales were both 0.2%.
Current wording
Depreciation and amortization expenses. Depreciation and amortization expenses incurred as part of restaurant operating costs were $17.2 million for fiscal year 2026 compared to $13.6 million for fiscal year 2025, representing an increase of $3.6 million or 26.6%. This increase was primarily due to the depreciation of property and equipment related to the opening of 16 new restaurants in fiscal year 2026. As a percentage of sales, depreciation and amortization expense at the restaurant-level was 5.2% in fiscal year 2026, compared to 4.8% in fiscal year 2025, increase was primarily due to depreciation associated with restaurant renovation costs and other capital projects. Depreciation and amortization expenses incurred at the corporate level were $0.5 million for both fiscal year 2026 and fiscal year 2025, and as a percentage of sales were both 0.2%.
Previous wording
Other costs. Other costs were $40.9 million for the fiscal year 2025 compared to $34.1 million for fiscal year 2024, representing an increase of $6.8 million, or 20.2%. The increase was primarily driven by an increase in costs related to 15 new restaurants opened in fiscal year 2025. As a percentage of sales, other costs remained relatively consistent at 14.5% in fiscal year 2025 compared to 14.3% in fiscal year 2024.
Current wording
Other costs. Other costs were $48.9 million for the fiscal year 2026 compared to $40.9 million for fiscal year 2025, representing an increase of $8.0 million, or 19.5%. The increase was primarily driven by an increase in costs related to 16 new restaurants opened in fiscal year 2026. As a percentage of sales, other costs were 14.9% in fiscal year 2026 as compared to 14.5% in fiscal year 2025, primarily driven by increase in utilities, kitchenware and repairs and maintenance expense.
Previous wording
Impairment of long-lived assets. Impairment of long-lived assets was none for fiscal year 2025 and $1.6 million for fiscal year 2024 due to impairment charges related to the property and equipment of one underperforming restaurant location.
Current wording
Impairment and disposal of long-lived assets. Impairment of long-lived assets was $0.9 million for fiscal year 2026 related to property and equipment of one restaurant location as a result of its performance. Disposal of long-lived assets was $0.3 million for fiscal year 2026 related to restaurants’ losses on disposal of equipment. No impairment loss was recognized during the fiscal year ended August 31, 2025.
Previous wording
Interest expense. Interest expense was $70 thousand for fiscal year 2025 and $47 thousand for fiscal year 2024.
Current wording
Interest expense. Interest expense was $67 thousand for fiscal year 2026 and $70 thousand for fiscal year 2025.
Previous wording
Interest income. Interest income was $3.1 million for fiscal year 2025 and $2.9 million for fiscal year 2024. The increase was primarily driven by investing our net cash proceeds from our $64.3 million follow-on offering completed in November 2024, partially offset by lower interest rates.
Current wording
Interest income. Interest income was $2.2 million for fiscal year 2026 and $3.1 million for fiscal year 2025. The decrease was primarily driven by lower interest rates and decrease in investments due to operating cash needs.
Previous wording
Sales represents sales of food and beverages in restaurants, as shown on our statements of operations and comprehensive income (loss). Several factors affect our restaurant sales in any given period including the number of restaurants in operation, guest traffic and average check.
Current wording
Sales represents sales of food and beverages in restaurants, as shown on our statements of operations and comprehensive loss. Several factors affect our restaurant sales in any given period including the number of restaurants in operation, guest traffic and average check.
Previous wording
EBITDA is defined as net income (loss) before interest, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA plus stock-based compensation expense, non-cash lease, closure costs and restaurant impairments, as well as certain items, such as litigation, that we believe are not indicative of our core operating results. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by sales. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures which are intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP. We believe that EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results. However, these measures may not provide a complete understanding of the operating results of the Company as a whole and such measures should be reviewed in conjunction with our GAAP financial results.
Current wording
EBITDA is defined as net income (loss) before interest, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA plus stock-based compensation expense, non-cash lease, closure costs, restaurant impairments and asset disposal charges, as well as certain items, such as litigation, that we believe are not indicative of our core operating results. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by sales. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures which are intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). We believe that EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results. However, these measures may not provide a complete understanding of the operating results of the Company as a whole and such measures should be reviewed in conjunction with our GAAP financial results.
Previous wording
Stock-based compensation expense includes non-cash stock-based compensation, which is comprised of restaurant-level stock-based compensation included in labor and related costs and of corporate-level stock-based compensation included in general and administrative expenses in the statements of operations and comprehensive income (loss), see “Note 6 — Stock-based Compensation” to the financial statements in this Annual Report on Form 10-K.
Current wording
Stock-based compensation expense includes non-cash stock-based compensation, which is comprised of restaurant-level stock-based compensation included in labor and related costs and of corporate-level stock-based compensation included in general and administrative expenses in the statements of operations and comprehensive loss, see “Note 11 — Stock-based Compensation” to the financial statements in this Annual Report on Form 10-K.
Previous wording
Litigation includes expenses related to legal claims or settlements.
Current wording
Litigation includes expenses related to legal claims and settlements.
Previous wording
Restaurant-level Operating Profit (Loss) is defined as operating income (loss) plus depreciation and amortization; stock-based compensation expense; pre-opening costs and general and administrative expenses which are considered normal, recurring, cash operating expenses and are essential to support the development and operations of our restaurants; non-cash lease expense; closure costs and restaurant impairments; less corporate-level stock-based compensation expense recognized within general and administrative expenses. Restaurant-level Operating Profit (Loss) margin is defined as Restaurant-level Operating Profit (Loss) divided by sales. Restaurant-level Operating Profit (Loss) and Restaurant-level Operating Profit (Loss) margin are intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP. We believe that Restaurant-level Operating Profit (Loss) and Restaurant-level Operating Profit (Loss) margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results, as this measure depicts normal, recurring cash operating expenses essential to supporting the development and operations of our restaurants. However, these measures may not provide a complete understanding of the operating results of the Company as a whole and such measures should be reviewed in conjunction with our GAAP financial results. We expect Restaurant-level Operating Profit (Loss) to increase in proportion to the number of new restaurants we open and our comparable restaurant sales growth.
Current wording
Restaurant-level Operating Profit (Loss) is defined as operating income (loss) plus depreciation and amortization; stock-based compensation expense; pre-opening costs and general and administrative expenses which are considered normal, recurring, cash operating expenses and are essential to support the development and operations of our restaurants; non-cash lease expense; closure costs, restaurant impairments and asset disposal charges; less corporate-level stock-based compensation expense recognized within general and administrative expenses. Restaurant-level Operating Profit (Loss) margin is defined as Restaurant-level Operating Profit (Loss) divided by sales. Restaurant-level Operating Profit (Loss) and Restaurant-level Operating Profit (Loss) margin are intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP. We believe that Restaurant-level Operating Profit (Loss) and Restaurant-level Operating Profit (Loss) margin provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and operating results, as this measure depicts normal, recurring cash operating expenses essential to supporting the development and operations of our restaurants. However, these measures may not provide a complete understanding of the operating results of the Company as a whole and such measures should be reviewed in conjunction with our GAAP financial results. We expect Restaurant-level Operating Profit (Loss) to increase in proportion to the number of new restaurants we open and our comparable restaurant sales growth.
Previous wording
Stock-based compensation expense includes non-cash stock-based compensation, which is comprised of restaurant-level stock-based compensation included in labor and related costs and of corporate-level stock-based compensation included in general and administrative expenses in the statements of operations and comprehensive income (loss), see “Note 6 — Stock-based Compensation” to the financial statements in this Annual Report on Form 10-K.
Current wording
Stock-based compensation expense includes non-cash stock-based compensation, which is comprised of restaurant-level stock-based compensation included in labor and related costs and of corporate-level stock-based compensation included in general and administrative expenses in the statements of operations and comprehensive loss, see “Note 11 — Stock-based Compensation” to the financial statements in this Annual Report on Form 10-K.
Previous wording
Our primary sources of liquidity and cash flows are cash and cash equivalents on hand and cash provided by operating activities. Our primary uses of cash are for operational expenditures and capital investments, including new restaurants, costs incurred for restaurant remodels and restaurant fixtures. The significant components of our working capital are liquid assets such as cash, cash equivalents and receivables reduced by accounts payable and accrued expenses. Our working capital position benefits from the fact that we generally collect cash from sales to guests the same day or, in the case of credit or debit card transactions, within several days of the related sale, while we typically have longer payment terms with our vendors.
Current wording
Our primary sources of liquidity and cash flows are cash and cash equivalents on hand and cash provided by operating activities. Our primary uses of cash are for operational expenditures and capital investments, including new restaurants, costs incurred for restaurant renovations and restaurant equipment. The significant components of our working capital are liquid assets such as cash, cash equivalents and receivables reduced by accounts payable and accrued expenses. Our working capital position benefits from the fact that we generally collect cash from sales to guests the same day or, in the case of credit or debit card transactions, within several days of the related sale, while we typically have longer payment terms with our vendors.
Previous wording
Net cash provided by operating activities during the fiscal year 2024 was $15.6 million, which primarily results from net loss of $8.8 million, non-cash charges of $11.8 million for depreciation and amortization, $4.3 million for stock-based compensation, $4.6 million in noncash lease expense, $1.6 million in impairment of long-lived assets, and net cash inflows of $2.1 million from changes in operating assets and liabilities.
Current wording
Net cash provided by operating activities during the fiscal year 2026 was $31.9 million, which primarily results from net loss of $4.6 million, non-cash charges of $17.7 million for depreciation and amortization, $4.8 million for stock-based compensation, $1.2 million in impairment and disposal of long lived assets, bond premium amortization of $0.2 million, and net cash inflows of $12.6 million from changes in operating assets and liabilities.
Previous wording
Net cash used in investing activities during the fiscal year 2024 was $36.5 million, primarily due to $44.3 million in purchases of property and equipment, $3.5 million in purchases of short-term investments, and $0.4 million for payments of initial direct costs, $0.3 million in purchases of liquor licenses offset by $12.0 million of redemption of short-term investments. The increase in purchases of property and equipment in fiscal year 2024 is primarily related to capital expenditures for current and future restaurant openings and renovations, maintaining our existing restaurants and other projects.
Current wording
Net cash used in investing activities during the fiscal year 2026 was $51.5 million, primarily due to $35.3 million in purchases of investments, $57.0 million in purchases of property and equipment, $1.1 million in purchases of liquor licenses and $0.5 million for payments of initial direct costs, offset by $42.4 million of maturities and redemptions of investments. Cash outflow for purchases of property and equipment is primarily related to capital expenditures for current and future restaurant openings, renovations, maintaining our existing restaurants and other projects.
Previous wording
Net cash used in investing activities during the fiscal year 2025 was $93.7 million, primarily due to $74.7 million in purchases of investments, $46.1 million in purchases of property and equipment, $2.2 million in purchases of liquor licenses and $0.5 million for payments of initial direct costs, offset by $29.8 million of redemption of investments. The increase in purchases of property and equipment in fiscal year 2025 is primarily related to capital expenditures for current and future restaurant openings and renovations, maintaining our existing restaurants and other projects.
Current wording
Net cash used in investing activities during the fiscal year 2025 was $93.7 million, primarily due to $74.7 million in purchases of investments, $46.1 million in purchases of property and equipment, $2.2 million in purchases of liquor licenses and $0.5 million for payments of initial direct costs, offset by $29.8 million of maturities and redemptions of investments. Cash outflow for purchases of property and equipment is primarily related to capital expenditures for current and future restaurant openings, renovations, maintaining our existing restaurants and other projects.
Previous wording
Net cash provided by financing activities during fiscal year 2024 was $2.1 million, primarily due to $2.5 million of proceeds from exercise of stock options offset by $0.3 million in tax payments in relation to vested restricted stock units.
Current wording
Net cash provided by financing activities during fiscal year 2026 was $0.5 million and is primarily due to $1.0 million of proceeds from exercise of stock options offset by $0.4 million in taxes paid on vested RSUs.
Previous wording
Net cash provided by financing activities during fiscal year 2025 was $65.5 million and is primarily due to aggregate net proceeds from the issuance of stock of $64.4 million after deducting the underwriting discounts and commissions and offering expenses, $1.6 million of proceeds from exercise of stock options offset by $0.3 million in tax payments in relation to vested restricted stock units.
Current wording
Net cash provided by financing activities during fiscal year 2025 was $65.5 million and is primarily due to aggregate net proceeds from the issuance of stock of $64.4 million after deducting the underwriting discounts and commissions and offering expenses, $1.6 million of proceeds from exercise of stock options offset by $0.3 million in taxes paid on vested RSUs.
Previous wording
As of August 31, 2025, we had an aggregate of approximately $17.2 million in contractual obligations which consisted of $9.8 million related to the construction of new restaurants and $7.4 million in purchase commitments for food related to restaurant operations. All contractual obligations are expected to be paid during the next 12 months utilizing cash and cash equivalents on hand and provided by operations. For operating and finance lease obligations, see “Note 4 — Leases” to the financial statements included in this Annual Report on Form 10-K.
Current wording
As of August 31, 2026, we had an aggregate of approximately $21.7 million in contractual obligations which consisted of $14.6 million in purchase commitments for food related to restaurant operations and $7.1 million related to the construction of new restaurants. All contractual obligations are expected to be paid during the next 12 months utilizing cash and cash equivalents on hand and provided by operations. For operating and finance lease obligations, see “Note 4 — Leases” to the financial statements included in this Annual Report on Form 10-K.
Previous wording
At inception of a contract, we assess whether the contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (finance lease) or not (operating lease). We currently lease all of our restaurant locations and our corporate offices, and all of them are classified as operating leases. For leases with renewal periods at our option, we determine the expected lease period based on whether the renewal of any options is reasonably assured at the inception of the lease.
Current wording
At inception of a contract, we assess whether the contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by us. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (finance lease) or not (operating lease). We currently lease all of our restaurant locations and our corporate offices, and all of them are classified as operating leases. For leases with renewal periods at our option, we determine the lease term based on whether the renewal of any options is reasonably certain to be exercised at the inception of the lease.
Previous wording
We assess potential impairments of our long-lived assets, which includes property and equipment and operating lease right-of-use assets, in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360—Property, Plant and Equipment. An impairment test is performed whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. In determining the recoverability of the asset value, an analysis is performed at the individual restaurant level. Assets are grouped at the individual restaurant level for purposes of the impairment assessment because a restaurant represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of an asset group is measured by a comparison of the carrying amount of an asset group to its estimated undiscounted forecasted restaurant cash flows expected to be generated by the asset group. Factors considered by us in estimating future cash flows include but are not limited to: significant underperformance relative to expected historical or projected future operating results; significant changes in the manner of use of the acquired assets; and significant negative industry or economic trends. The estimated undiscounted forecasted cash flows include assumptions made by management regarding certain items such as revenue, food and beverage costs, labor costs, occupancy costs, and other restaurant operating costs and therefore are subject to uncertainty as our actual results may differ from our estimates. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset, which is determined by the cost approach method. For more information on impairment of long-lived assets, see “Note 2 — Basis of Presentation and Summary of Significant Accounting Policies” to the financial statements included in this Annual Report on Form 10-K.
Current wording
We assess potential impairments of our long-lived assets, which includes property and equipment and operating lease right-of-use assets, in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360—Property, Plant and Equipment. An impairment assessment is performed at the individual restaurant level to determine if events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Assets are grouped at the individual restaurant level because a restaurant represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The primary indicator considered by us in the assessment is significant historical cash flow underperformance at the individual restaurant level. Other indicators that are considered by us include but are not limited to: significant negative industry, economic or customer trends and expectations that the asset group will be sold or otherwise disposed of before the end of its previously estimated useful life. If there are indicators that the carrying value of an asset group may not be recoverable, recoverability is measured by a comparison of the carrying amount of an asset group to its estimated undiscounted forecasted restaurant cash flows expected to be generated by the asset group. The estimated undiscounted forecasted cash flows include assumptions made by us regarding certain items such as revenue, food and beverage costs, labor costs, occupancy costs, and other restaurant operating costs and therefore are subject to uncertainty as our actual results may differ from our estimates. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset. For more information on impairment of long-lived assets, see “Note 2 — Basis of Presentation and Summary of Significant Accounting Policies” to the financial statements included in this Annual Report on Form 10-K.