Kura Sushi USA plans to raise USD 58 million in an initial public offering.
The American subsidiary of Japanese chain Kura Sushi plans to operate 290 restaurants, the company revealed in federal securities filings last week.
The request for the initial public offering is part of the subsidiary’s plan to increase the number of its conveyor-belt sushi outlets in the U.S. to 290 or more from the current 22.
Its Japanese parent company, Kura Japan. Kura Japan which opened its first revolving sushi restaurant in 1984.
Kura Sushi USA’s sales totalled USD 52 million in its financial year ended August 2018. Its adjusted EBITDA was USD 4.5 million.
Founded in 2008, the American chain has operations in the states of California, Texas, Georgia, Illinois and Nevada. In response to the growing popularity of conveyor-belt sushi in the U.S., the subsidiary plans to achieve a 20% average annual restaurant growth rate over the next five years.
The company uses automated equipment and systems such as sushi robots, RFID readers, robotic arms, and food replenishment algorithms to reduce labour and food costs.
Restaurantbusinessonline reported that Kura Sushi USA’s would be the first traditional IPO in the restaurant industry since 2015 and would also be one of its smallest.