While there was little news of note directly concerning Japanese restaurant chain operator Kura Sushi USA (NASDAQ: KRUS) over the past few days, an analyst’s move on the stock and a bit of unusual news from its parent company combined to blast the stock higher. It had booked a nearly 24% gain in price week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.
Setting an odd new record
Kura Sushi USA won some free publicity thanks to that news item. The company is a subsidiary of Japan-based Kura Sushi, which announced mid-week that it would build a conveyor belt sushi restaurant — its specialty — at next year’s World Expo in the Japanese city of Osaka.
But not just any conveyor belt sushi restaurant. According to Kura Sushi, diners will be served by the world’s longest conveyor belt. This automated serving instrument will stretch a total of 442 feet for the sole purpose of delivering food and drink to the restaurant’s customers. Almost needless to say, this will be Kura Sushi’s largest outlet in terms of capacity, with enough space for 338 people to sit. The restaurant’s opening is slated for April, 2025, presumably to coincide with the start of the Expo.
That news item hit the headlines one day after that initiation of coverage by Northcoast Research’s Jim Sanderson. He tagged Kura Sushi USA — basically, the subsidiary containing its U.S. operations — as a buy at a price target of $79 per share.
An oldie but goodie
Conveyor belt sushi is one of those dining novelties that have never really faded away. It’s still a fun way to partake in a meal with fellow sushi aficionados and, given Kura Sushi’s latest move, obviously still an attention-grabbing way to sling food and beverages. We’ll see if the company’s American unit can fulfill the inflated expectations that come with any share price pop.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
