0000950170-23-011783 | 10-Q | XBRL Viewer

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Leases - Additional Information (Details) $ in Millions	6 Months Ended
Leases - Additional Information (Details) $ in Millions	Feb. 28, 2023 USD ($)
Lessee Lease Description [Line Items]
Operating and finance leases, remaining lease start range terms description	less than 1 year
Operating lease liabilities not yet commenced, liability	$ 41.1
Option to extend, existence, lease liabilities not yet commenced, operating lease	true
Maximum
Lessee Lease Description [Line Items]
Operating and finance leases, remaining lease terms	20 years

Loss Per Share (Tables)

6 Months Ended

Feb. 28, 2023

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of the Company’s basic and diluted net loss per share:


	Three Months Ended February 28,												Six Months Ended February 28,
	2023						2022							2023						2022
	Class A			Class B			Class A			Class B				Class A			Class B			Class A			Class B
	(amounts in thousands, except per share data)
Net loss attributable to common stockholders	$	(911	)	$	(104	)	$	(1,686	)	$	(193	)		$	(2,786	)	$	(317	)	$	(2,829	)	$	(325	)

Weighted average common shares outstanding – basic		8,801			1,000			8,712			1,000				8,795			1,000			8,711			1,000
Dilutive effect of stock-based awards		—			—			—			—				—			—			—			—
Weighted average common shares outstanding – diluted		8,801			1,000			8,712			1,000				8,795			1,000			8,711			1,000

Net loss per share attributable to common stockholders – basic	$	(0.10	)	$	(0.10	)	$	(0.19	)	$	(0.19	)		$	(0.32	)	$	(0.32	)	$	(0.32	)	$	(0.32	)
Net loss per share attributable to common stockholders – diluted	$	(0.10	)	$	(0.10	)	$	(0.19	)	$	(0.19	)		$	(0.32	)	$	(0.32	)	$	(0.32	)	$	(0.32	)

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Property Plant And Equipment Net [Abstract]
Depreciation and amortization expenses	$ 1,800	$ 1,400	$ 3,507	$ 2,609

Related Party Transactions (Tables)

6 Months Ended

Feb. 28, 2023

Balances with Kura Japan are as follows:


	February 28, 2023		August 31, 2022
	(amounts in thousands)
Due from affiliate	$	7	$	156
Due to affiliate	$	439	$	285

Reimbursements and other payments by the Company to Kura Japan were as follows:


	Three Months Ended February 28,				Six Months Ended February 28,
	2023		2022		2023		2022
	(amounts in thousands)
Related party transactions:
Expatriate salaries expense	$	33	$	41	$	54	$	83
Royalty payments		220		157		417		306
Travel and other administrative expenses		30		17		30		19
Purchases of equipment		718		223		1,456		503
Total related party transactions	$	1,001	$	438	$	1,957	$	911

Stock-based Compensation - Summary of Stock Based Compensation Recognized under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 945	$ 596	$ 1,595	$ 1,039
Restaurant-level Stock Based Compensation Included In Other Costs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	125	72	219	107
Corporate-level Stock Based Compensation Included In General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 820	$ 524	$ 1,376	$ 932

Leases

6 Months Ended

Feb. 28, 2023

Leases [Abstract]

Leases

Note 3. Leases

The Company has operating and finance leases for its corporate office, restaurant locations, office equipment, kitchen equipment and automobiles. The Company’s leases have remaining lease terms of less than 1 year to 20 years, some of which include options to extend the leases.

Lease related costs recognized in the statements of operations are as follows:


		Three Months Ended February 28,				Six Months Ended February 28,
		2023		2022		2023		2022
		(amounts in thousands)
Finance lease cost	Classification
Amortization of right-of-use assets	Depreciation and amortization expenses	$	129	$	143	$	364	$	279
Interest on lease liabilities	Interest expense		3		11		7		24
Total finance lease cost		$	132	$	154	$	371	$	303


		Three Months Ended February 28,				Six Months Ended February 28,
		2023		2022		2023		2022
		(amounts in thousands)
Operating lease cost	Classification
Operating lease cost	Occupancy and related expenses, other costs and general and administrative expenses	$	2,410	$	1,915	$	4,672	$	3,747
Variable lease cost	Occupancy and related expenses, and general and administrative expenses		799		453		1,444		889
Total operating lease cost		$	3,209	$	2,368	$	6,116	$	4,636

Supplemental balance sheet information related to leases is as follows:

Operating Leases


	February 28, 2023		August 31, 2022
	(amounts in thousands)
Right-of-use assets	$	90,129	$	79,990

Lease liabilities – current	$	8,538	$	7,992
Lease liabilities – non-current		94,329		82,280
Total lease liabilities	$	102,867	$	90,272

Finance Lease Assets – net


	February 28, 2023			August 31, 2022
	(amounts in thousands)
Property and equipment	$	6,148		$	6,166
Accumulated depreciation		(3,616	)		(3,348	)
Total property and equipment – net	$	2,532		$	2,818

Finance Leases Liabilities


	February 28, 2023		August 31, 2022
	(amounts in thousands)
Finance lease – current	$	179	$	507
Finance lease – non-current		16		30
Total finance lease liabilities	$	195	$	537



	Six months ended February 28,
	2023			2022
Weighted Average Remaining Lease Term (Years)
Operating leases		16.1			16.2
Finance leases		0.3			1.1

Weighted Average Discount Rate
Operating leases		6.5	%		6.4	%
Finance leases		4.7	%		4.6	%

Supplemental disclosures of cash flow information related to leases are as follows:


	Six Months Ended February 28,
	2023		2022
	(amounts in thousands)
Operating cash flows paid for operating lease liabilities	$	3,808	$	3,111
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$	11,782	$	9,243

As of February 28, 2023, the Company has an additional $41.1 million of operating leases related to restaurants for which the Company has not yet taken possession.

Maturities of lease liabilities, net of lease receivables, were as follows:


	Operating Leases			Finance Leases
	(amounts in thousands)
Remainder of 2023	$	2,796		$	161
2024		6,867			36
2025		9,614			7
2026		9,549			—
2027		9,379			—
Thereafter		126,920			—
Total lease payments		165,125			204
Less: imputed interest		(62,258	)		(9	)
Present value of lease liabilities	$	102,867		$	195

Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)	Feb. 28, 2023	Feb. 28, 2022
Weighted Average Remaining Lease Term (Years)
Operating leases	16 years 1 month 6 days	16 years 2 months 12 days
Finance leases	3 months 18 days	1 year 1 month 6 days
Weighted Average Discount Rate
Operating leases	6.50%	6.40%
Finance leases	4.70%	4.60%

Condensed Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Class A	Class B	Common Stock Class A	Common Stock Class B	Additional Paid-in-Capital	Accumulated Deficit
Beginning balances at Aug. 31, 2021	$ 90,844			$ 9	$ 1	$ 115,756	$ (24,922)
Beginning balance, shares at Aug. 31, 2021				8,700	1,000
Stock-based compensation	443					443
Employee stock plan	19					19
Employee stock plan, shares				13
Net loss	(1,275)						(1,275)
Ending balances at Nov. 30, 2021	90,031			$ 9	$ 1	116,218	(26,197)
Ending balance, shares at Nov. 30, 2021				8,713	1,000
Beginning balances at Aug. 31, 2021	90,844			$ 9	$ 1	115,756	(24,922)
Beginning balance, shares at Aug. 31, 2021				8,700	1,000
Net loss	(3,154)
Ending balances at Feb. 28, 2022	88,623			$ 9	$ 1	116,689	(28,076)
Ending balance, shares at Feb. 28, 2022				8,716	1,000
Beginning balances at Nov. 30, 2021	90,031			$ 9	$ 1	116,218	(26,197)
Beginning balance, shares at Nov. 30, 2021				8,713	1,000
Stock-based compensation	596					596
Employee stock plan	29					29
Taxes paid on vested restricted stock awards	(154)					(154)	0
Taxes paid on vested restricted stock awards, shares				(2)
Employee stock plan, shares				5
Net loss	(1,879)						(1,879)
Ending balances at Feb. 28, 2022	88,623			$ 9	$ 1	116,689	(28,076)
Ending balance, shares at Feb. 28, 2022				8,716	1,000
Beginning balances at Aug. 31, 2022	93,294			$ 9	$ 1	118,970	(25,686)
Beginning balance, shares at Aug. 31, 2022		8,788	1,000	8,788	1,000
Stock-based compensation	650					650
Employee stock plan	51					51
Employee stock plan, shares				3
Net loss	(2,088)						(2,088)
Ending balances at Nov. 30, 2022	91,907			$ 9	$ 1	119,671	(27,774)
Ending balance, shares at Nov. 30, 2022				8,791	1,000
Beginning balances at Aug. 31, 2022	93,294			$ 9	$ 1	118,970	(25,686)
Beginning balance, shares at Aug. 31, 2022		8,788	1,000	8,788	1,000
Net loss	(3,103)
Ending balances at Feb. 28, 2023	92,370			$ 9	$ 1	121,149	(28,789)
Ending balance, shares at Feb. 28, 2023		8,819	1,000	8,819	1,000
Beginning balances at Nov. 30, 2022	91,907			$ 9	$ 1	119,671	(27,774)
Beginning balance, shares at Nov. 30, 2022				8,791	1,000
Stock-based compensation	945					945
Employee stock plan	533					533
Employee stock plan, shares				28
Net loss	(1,015)						(1,015)
Ending balances at Feb. 28, 2023	$ 92,370			$ 9	$ 1	$ 121,149	$ (28,789)
Ending balance, shares at Feb. 28, 2023		8,819	1,000	8,819	1,000

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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+ Details

Stock-based Compensation (Tables)

6 Months Ended

Feb. 28, 2023

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Stock Option Activity under Stock Incentive Plan

The following table summarizes the stock option activity under the Company’s 2018 Incentive Compensation Plan, as amended and restated (the “Stock Incentive Plan”):


	Options Outstanding
	Number of Shares Underlying Outstanding Options			Weighted Average Exercise Price Per Share
Outstanding — August 31, 2022		675,942		$	27.12
Options granted		56,951		$	73.20
Options exercised		(2,491	)	$	12.82
Options canceled/forfeited		(23,781	)	$	46.47
Outstanding — November 30, 2022		706,621		$	30.28
Options granted		75,084		$	60.62
Options exercised		(27,858	)	$	19.13
Options canceled/forfeited		(13,034	)	$	40.72
Outstanding — February 28, 2023		740,813		$	33.57

Summary of Restricted Stock Unit (RSU) Activity Under Stock Incentive Plan

The following table summarizes the restricted stock unit (“RSU”) activity under the Stock Incentive Plan:


	RSU Outstanding
	Number of Shares Underlying Outstanding RSU		Weighted Average Grant Date Fair Value
Outstanding — August 31, 2022		—		—
RSU's granted		1,359	$	73.58
Outstanding — November 30, 2022		1,359	$	73.58
RSU's granted		25,347	$	62.14
Outstanding — February 28, 2023		26,706	$	62.72

Summary of Stock Based Compensation Recognized under Stock Incentive Plan

The total stock-based compensation recognized under the Stock Incentive Plan in the statements of operations is as follows:


	Three Months Ended February 28,				Six Months Ended February 28,
	2023		2022		2023		2022
	(amounts in thousands)
Restaurant-level stock-based compensation included in other costs	$	125	$	72	$	219	$	107
Corporate-level stock-based compensation included in general and administrative expenses		820		524		1,376		932
Total stock-based compensation	$	945	$	596	$	1,595	$	1,039

Loss Per Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Earnings Per Share [Line Items]
Shares of common stock subject to outstanding employee stock options that were excluded from the calculation of diluted income (loss) per share	768	762	768	762

Related Party Transactions - Additional Information (Details) - Kura Japan - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Aug. 31, 2019	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Travel and Translation Expense
Related Party Transaction [Line Items]
Reimbursements by related party		$ 26	$ 11	$ 60	$ 28
Revolving Credit Facility Agreement \| COVID-19
Related Party Transaction [Line Items]
Credit facility maximum borrowing capacity		$ 45,000		$ 45,000
Amended and Restated Exclusive License Agreement
Related Party Transaction [Line Items]
Royalty fee of net sales	0.50%

Organization and Basis of Presentation (Policies)	6 Months Ended
Organization and Basis of Presentation (Policies)	Feb. 28, 2023
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2022. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2022. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the fiscal year ending August 31, 2023 or for any other future annual or interim period.
Fiscal Year	Fiscal Year The Company’s fiscal year begins on September 1 and ends on August 31, and references made to “fiscal year 2023” and “fiscal year 2022” refer to the Company’s fiscal years ending August 31, 2023 and ended August 31, 2022, respectively.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. Significant items subject to such estimates include asset retirement obligations, stock-based compensation, the useful lives of assets, the assessment of the recoverability of long-lived assets, and income taxes. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) is the same as net income (loss) for all periods presented. Therefore, a separate statement of comprehensive income (loss) is not included in the accompanying financial statements.
Recently Adopted Accounting Pronouncement	Recently Adopted Accounting Pronouncement In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,” which provides guidance on disclosures for transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The Company adopted this update effective September 1, 2022. The adoption of this update did not have a material impact to the consolidated financial statements.
S-3 Registration Statement	S-3 Registration Statement On December 28, 2022, the Company 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 6, 2023, 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 $125.0 million, which may be sold from time to time. The terms of any securities offered under the Registration Statement and 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.

Related Party Transactions

6 Months Ended

Feb. 28, 2023

Related Party Transactions

Note 4. Related Party Transactions

Kura Sushi, Inc. (“Kura Japan”) is the majority stockholder of the Company and is incorporated and headquartered in Japan. In August 2019, the Company entered into a Shared Services Agreement with Kura Japan, pursuant to which Kura Japan provides the Company with certain strategic, operational and other support services, including assigning certain employees to work for the Company as expatriates to provide support to the Company’s operations, sending its employees to the Company on a short-term basis to provide support for the opening of new restaurants or renovation of existing restaurants, and providing the Company with certain supplies, parts and equipment for use in the Company’s restaurants. In addition, the Company has agreed to continue to provide Kura Japan with certain translational support services, and market research. In exchange for such services, supplies, parts and equipment, the parties pay fees to each other as set forth under the Shared Services Agreement. A right of setoff is not required; however, from time to time, either party will net settle transactions as needed. Purchases of administrative supplies, expatriate salaries and travel and other administrative expenses payable to Kura Japan are included in general and administrative expenses in the accompanying statement of operations. Purchases of equipment from Kura Japan are included in property and equipment in the accompanying balance sheets.

In August 2019, the Company entered into an Amended and Restated Exclusive License Agreement (the “License Agreement”) with Kura Japan. Pursuant to the License Agreement, the Company pays Kura Japan a royalty fee of 0.5% of the Company’s net sales in exchange for an exclusive, royalty-bearing license for use of certain of Kura Japan’s intellectual property rights, including, but not limited to, Kura Japan’s trademarks “Kura Sushi” and “Kura Revolving Sushi Bar,” and patents for a food management system and the Mr. Fresh protective dome, among other intellectual property rights necessary to continue operation of the Company’s restaurants. Royalty payments to Kura Japan are included in other costs at the restaurant level in the accompanying statements of operations.

On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, as amended, to provide the Company a revolving credit line of $45.0 million (the “Revolving Credit Agreement”). For additional information, see “Note 6. Debt.”

Balances with Kura Japan are as follows:


	February 28, 2023		August 31, 2022
	(amounts in thousands)
Due from affiliate	$	7	$	156
Due to affiliate	$	439	$	285

Reimbursements and other payments by the Company to Kura Japan were as follows:


	Three Months Ended February 28,				Six Months Ended February 28,
	2023		2022		2023		2022
	(amounts in thousands)
Related party transactions:
Expatriate salaries expense	$	33	$	41	$	54	$	83
Royalty payments		220		157		417		306
Travel and other administrative expenses		30		17		30		19
Purchases of equipment		718		223		1,456		503
Total related party transactions	$	1,001	$	438	$	1,957	$	911

Reimbursements by Kura Japan to the Company were $26 thousand and $11 thousand for the three months ended February 28, 2023 and February 28, 2022, respectively, and were $60 thousand and $28 thousand for the six months ended February 28, 2023 and February 28, 2022, respectively. The reimbursements were primarily for travel and other administrative expenses.

Organization and Basis of Presentation

6 Months Ended

Feb. 28, 2023

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Basis of Presentation

Note 1. Organization and Basis of Presentation

Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept that provides guests with a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model, which the Company refers to as the “Kura Experience.” Kura Sushi encourages healthy lifestyles by serving freshly prepared Japanese cuisine using high-quality ingredients that are free from artificial seasonings, sweeteners, colorings, and preservatives. Kura Sushi aims to make quality Japanese cuisine accessible to its guests across the United States through affordable prices and an inviting atmosphere. “Kura Sushi USA,” “Kura Sushi,” “Kura,” and the “Company” refer to Kura Sushi USA, Inc. unless expressly indicated or the context otherwise requires.

Basis of Presentation

The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2022.

The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2022. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the fiscal year ending August 31, 2023 or for any other future annual or interim period.

Fiscal Year

The Company’s fiscal year begins on September 1 and ends on August 31, and references made to “fiscal year 2023” and “fiscal year 2022” refer to the Company’s fiscal years ending August 31, 2023 and ended August 31, 2022, respectively.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented.

Significant items subject to such estimates include asset retirement obligations, stock-based compensation, the useful lives of assets, the assessment of the recoverability of long-lived assets, and income taxes. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions.

Comprehensive Income (Loss)

Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) is the same as net income (loss) for all periods presented. Therefore, a separate statement of comprehensive income (loss) is not included in the accompanying financial statements.

Recently Adopted Accounting Pronouncement

In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,” which provides guidance on disclosures for transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The Company adopted this update effective September 1, 2022. The adoption of this update did not have a material impact to the consolidated financial statements.

S-3 Registration Statement

On December 28, 2022, the Company 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 6, 2023, 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 $125.0 million, which may be sold from time to time. The terms of any securities offered under the Registration Statement and 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.

Loss Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Earnings Per Share Diluted [Line Items]
Weighted average common shares outstanding – basic	9,801	9,712	9,795	9,711
Diluted	9,801	9,712	9,795	9,711
Basic	$ (0.10)	$ (0.19)	$ (0.32)	$ (0.32)
Diluted	$ (0.10)	$ (0.19)	$ (0.32)	$ (0.32)
Class A
Earnings Per Share Diluted [Line Items]
Net loss attributable to common stockholders	$ (911)	$ (1,686)	$ (2,786)	$ (2,829)
Weighted average common shares outstanding – basic	8,801	8,712	8,795	8,711
Diluted	8,801	8,712	8,795	8,711
Basic	$ (0.10)	$ (0.19)	$ (0.32)	$ (0.32)
Diluted	$ (0.10)	$ (0.19)	$ (0.32)	$ (0.32)
Class B
Earnings Per Share Diluted [Line Items]
Net loss attributable to common stockholders	$ (104)	$ (193)	$ (317)	$ (325)
Weighted average common shares outstanding – basic	1,000	1,000	1,000	1,000
Diluted	1,000	1,000	1,000	1,000
Basic	$ (0.10)	$ (0.19)	$ (0.32)	$ (0.32)
Diluted	$ (0.10)	$ (0.19)	$ (0.32)	$ (0.32)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

Related Party Transactions - Schedule of Related Party Transactions Due to and from Affiliates (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022
Related Party Transaction [Line Items]
Due from affiliate	$ 7	$ 156
Due to affiliate	439	285
Kura Japan
Related Party Transaction [Line Items]
Due from affiliate	7	156
Due to affiliate	$ 439	$ 285

Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
Condensed Statements of Cash Flows - USD ($) $ in Thousands	Feb. 28, 2023	Feb. 28, 2022
Cash flows from operating activities
Net loss	$ (3,103)	$ (3,154)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	3,507	2,609
Stock-based compensation	1,595	1,039
Loss on disposal of property and equipment	50
Non-cash lease expense	1,825	1,420
Changes in operating assets and liabilities:
Accounts and other receivables	(11)	(224)
Inventories	(316)	(147)
Due from affiliate	149	318
Prepaid expenses and other current assets	(177)	7,679
Deposits and other assets	245	(81)
Accounts payable	(797)	201
Accrued expenses and other current liabilities	(598)	(123)
Salaries and wages payable	(155)	361
Operating lease liabilities	(242)	(221)
Due to affiliate	(278)	(3)
Sales tax payable	(17)	48
Net cash provided by operating activities	1,677	9,722
Cash flows from investing activities
Payments for property and equipment	(14,302)	(12,298)
Payments for initial direct costs	(275)	(315)
Payments for purchases of liquor licenses	(831)	(559)
Net cash used in investing activities	(15,408)	(13,172)
Cash flows from financing activities
Repayment of principal on finance leases	(341)	(524)
Taxes paid on vested restricted stock awards		(154)
Proceeds from exercise of stock options	584	48
Net cash provided by (used in) financing activities	243	(630)
Decrease in cash and cash equivalents	(13,488)	(4,080)
Cash and cash equivalents, beginning of period	35,782	40,430
Cash and cash equivalents, end of period	22,294	36,350
Supplemental disclosures of cash flow information
Cash paid for income taxes	117	88
Noncash investing activities
Acquisition of finance leases		34
Amounts unpaid for purchases of property and equipment	$ 3,752	$ 779

Leases - Summary of Finance Lease Assets - Net (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022
Lessee Lease Description [Line Items]
Property and equipment	$ 111,335	$ 95,646
Accumulated depreciation	(23,544)	(20,056)
Total property and equipment – net	87,791	75,590
Finance Lease Assets
Lessee Lease Description [Line Items]
Property and equipment	6,148	6,166
Accumulated depreciation	(3,616)	(3,348)
Total property and equipment – net	$ 2,532	$ 2,818

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Dec. 31, 2022	Feb. 28, 2023
Loss Contingencies [Line Items]
Settlement amount		$ 1,750
Amount deposited into an account controlled by a settlement administrator	$ 1,780
General and Administrative Expenses
Loss Contingencies [Line Items]
Accrued liability		1,780
Payroll taxes		$ 30

Leases - Summary of Operating Leases (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022
Leases [Abstract]
Right-of-use assets	$ 90,129	$ 79,990
Lease liabilities – current	8,538	7,992
Lease liabilities – non-current	94,329	82,280
Total lease liabilities	$ 102,867	$ 90,272

Debt

6 Months Ended

Feb. 28, 2023

Debt Disclosure [Abstract]

Debt

Note 6. Debt

On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, as amended, establishing a $45.0 million revolving credit line for the Company. The maturity date for each advance is 60 months from the date of disbursement and the last day of the period of availability for advances is April 10, 2025. The Revolving Credit Note under the Revolving Credit Agreement has an interest rate for advances fixed at 130% of the Annual Compounding Long-Term Applicable Federal Rate (“AFR”) on the date such advance is made. There are no financial covenants under the Revolving Credit Agreement with which the Company must comply.

As of February 28, 2023 and August 31, 2022, the Company had no outstanding balance and $45.0 million of availability remaining under the Revolving Credit Agreement. For additional information, see “Note 4. Related Party Transactions.”

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Commitments and Contingencies

6 Months Ended

Feb. 28, 2023

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8. Commitments and Contingencies

On May 31, 2019, a putative class action complaint was filed by a former employee, Brandy Gomes, in Los Angeles County Superior Court, alleging violations of California wage and hour laws. On July 9, 2020, plaintiff’s counsel filed a first amended class action complaint to add Jamar Spencer, another former employee, as a plaintiff to this action. In addition, the first amended class action complaint added new causes of action alleging violations of California wage and hour laws including a cause of action brought under the California Private Attorney General Act. On August 7, 2020, the Company filed its answer to the first amended complaint, generally denying the allegations in the complaint. In May 2021, a joint stipulation was filed requesting a delay in the class certification hearing date to March 3, 2022, and a mediation was scheduled for September 24, 2021. During the mediation, a settlement was agreed upon in the amount of $1.75 million. The Company recorded an accrued liability of $1.78 million, including an estimated $30 thousand in employer payroll taxes, related to this settlement within general and administrative expenses in the statements of operations during the fiscal year ended August 31, 2021. The court granted final approval of the settlement on November 18, 2022. In December 2022, pursuant to the court’s order granting final approval of the settlement, the Company deposited $1.78 million into an account controlled by a settlement administrator for disbursement to class participants and other parties to the litigation. A final report regarding the distribution of settlement funds is due on July 6, 2023, and a non-appearance case review is scheduled for July 13, 2023.

The Company is involved from time to time in various legal proceedings that arise in the ordinary course of business, including but not limited to commercial disputes, environmental matters, employee related claims, intellectual property disputes and litigation in connection with transactions including acquisitions and divestitures. In the opinion of management, the Company does not believe that such litigation, claims, and administrative proceedings, excluding the putative class action matter referenced above, will have a material adverse effect on its business, financial position, results of operations or cash flows. However, a significant increase in the number of these claims or an increase in amounts owing under successful claims, including the putative class action referenced above, could materially and adversely affect its business, financial condition, results of operations or cash flows. The Company records a liability when a loss is considered probable, and the amount can be reasonably estimated.

Stock-based Compensation

6 Months Ended

Feb. 28, 2023

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation

Note 5. Stock-based Compensation

The following table summarizes the stock option activity under the Company’s 2018 Incentive Compensation Plan, as amended and restated (the “Stock Incentive Plan”):


	Options Outstanding
	Number of Shares Underlying Outstanding Options			Weighted Average Exercise Price Per Share
Outstanding — August 31, 2022		675,942		$	27.12
Options granted		56,951		$	73.20
Options exercised		(2,491	)	$	12.82
Options canceled/forfeited		(23,781	)	$	46.47
Outstanding — November 30, 2022		706,621		$	30.28
Options granted		75,084		$	60.62
Options exercised		(27,858	)	$	19.13
Options canceled/forfeited		(13,034	)	$	40.72
Outstanding — February 28, 2023		740,813		$	33.57

The following table summarizes the restricted stock unit (“RSU”) activity under the Stock Incentive Plan:


	RSU Outstanding
	Number of Shares Underlying Outstanding RSU		Weighted Average Grant Date Fair Value
Outstanding — August 31, 2022		—		—
RSU's granted		1,359	$	73.58
Outstanding — November 30, 2022		1,359	$	73.58
RSU's granted		25,347	$	62.14
Outstanding — February 28, 2023		26,706	$	62.72

The total stock-based compensation recognized under the Stock Incentive Plan in the statements of operations is as follows:


	Three Months Ended February 28,				Six Months Ended February 28,
	2023		2022		2023		2022
	(amounts in thousands)
Restaurant-level stock-based compensation included in other costs	$	125	$	72	$	219	$	107
Corporate-level stock-based compensation included in general and administrative expenses		820		524		1,376		932
Total stock-based compensation	$	945	$	596	$	1,595	$	1,039

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Feb. 28, 2023	Mar. 30, 2023
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Title of 12(b) Security	Class A Common Stock, $0.001 par value per share
Trading Symbol	KRUS
Security Exchange Name	NASDAQ
Entity Registrant Name	KURA SUSHI USA, INC.
Entity Central Index Key	0001772177
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--08-31
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity File Number	001-39012
Entity Tax Identification Number	26-3808434
Entity Address, Address Line One	17461 Derian Avenue
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Incorporation, State or Country Code	DE
Entity Address, Postal Zip Code	92614
City Area Code	657
Local Phone Number	333-4100
Document Quarterly Report	true
Document Transition Report	false
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		8,822,098
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,000,050

Condensed Balance Sheets (Parenthetical) - $ / shares	Feb. 28, 2023	Aug. 31, 2022
Preferred stock, par value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Class A
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	8,819,000	8,788,000
Common stock, shares outstanding	8,819,000	8,788,000
Class B
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	10,000,000	10,000,000
Common Stock, Shares, Issued	1,000,000	1,000,000
Common stock, shares outstanding	1,000,000	1,000,000

Leases - Summary of Finance Leases Liabilities (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022
Leases [Abstract]
Finance lease – current	$ 179	$ 507
Finance lease – non-current	16	30
Total finance lease liabilities	$ 195	$ 537

Balance Sheet Components - Schedule of Property and Equipment - Net (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022
Property Plant And Equipment [Line Items]
Property and equipment - gross	$ 111,335	$ 95,646
Accumulated depreciation	(23,544)	(20,056)
Total property and equipment – net	87,791	75,590
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment - gross	66,227	56,668
Lease Assets
Property Plant And Equipment [Line Items]
Property and equipment - gross	6,148	6,166
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment - gross	28,468	21,759
Computer Equipment
Property Plant And Equipment [Line Items]
Property and equipment - gross	1,934	1,307
Vehicles
Property Plant And Equipment [Line Items]
Property and equipment - gross	220	159
Software
Property Plant And Equipment [Line Items]
Property and equipment - gross	942	921
Construction in Progress
Property Plant And Equipment [Line Items]
Property and equipment - gross	$ 7,396	$ 8,666

Stock-based Compensation - Summary of Restricted Stock Unit (RSU) Activity Under Stock Incentive Plan (Details) - Stock Incentive Plan - Restricted Stock Units - $ / shares	3 Months Ended
	Feb. 28, 2023	Nov. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSU's Outstanding, Number of Shares Underlying Outstanding RSU's, Beginning balance	1,359,000
RSU's Outstanding, Number of Shares Underlying Outstanding RSU's, RSU's granted	25,347,000	1,359,000
RSU's Outstanding, Number of Shares Underlying Outstanding RSU's, Ending balance	26,706,000	1,359,000
Weighted average exercise price per share, RSU's outstanding Beginning	$ 73.58
Weighted average exercise price per share, RSU's granted	62.14	$ 73.58
Weighted average exercise price per share, RSU's outstanding Endining	$ 62.72	$ 73.58

Leases - Summary of Lease Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Finance lease cost
Amortization of right-of-use assets	$ 129	$ 143	$ 364	$ 279
Interest on lease liabilities	3	11	7	24
Total finance lease cost	132	154	371	303
Operating lease cost
Operating lease cost	2,410	1,915	4,672	3,747
Variable lease cost	799	453	1,444	889
Total operating lease cost	$ 3,209	$ 2,368	$ 6,116	$ 4,636

Loss Per Share

6 Months Ended

Feb. 28, 2023

Earnings Per Share [Abstract]

Loss Per Share

Note 7. Loss Per Share

The net loss per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the income for the year has been distributed. As the liquidation and dividend rights for Class A and Class B common stock are identical, the net loss attributable to all common stockholders is allocated on a proportionate basis.

The following table sets forth the computation of the Company’s basic and diluted net loss per share:


	Three Months Ended February 28,												Six Months Ended February 28,
	2023						2022							2023						2022
	Class A			Class B			Class A			Class B				Class A			Class B			Class A			Class B
	(amounts in thousands, except per share data)
Net loss attributable to common stockholders	$	(911	)	$	(104	)	$	(1,686	)	$	(193	)		$	(2,786	)	$	(317	)	$	(2,829	)	$	(325	)

Weighted average common shares outstanding – basic		8,801			1,000			8,712			1,000				8,795			1,000			8,711			1,000
Dilutive effect of stock-based awards		—			—			—			—				—			—			—			—
Weighted average common shares outstanding – diluted		8,801			1,000			8,712			1,000				8,795			1,000			8,711			1,000

Net loss per share attributable to common stockholders – basic	$	(0.10	)	$	(0.10	)	$	(0.19	)	$	(0.19	)		$	(0.32	)	$	(0.32	)	$	(0.32	)	$	(0.32	)
Net loss per share attributable to common stockholders – diluted	$	(0.10	)	$	(0.10	)	$	(0.19	)	$	(0.19	)		$	(0.32	)	$	(0.32	)	$	(0.32	)	$	(0.32	)

The Company computes basic loss per common share using net loss and the weighted average number of common shares outstanding during the period, and computes diluted loss per common share using net loss and the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include dilutive outstanding employee stock options and restricted stock units.

For the three and six months ended February 28, 2023 and February 28, 2022, there were 768 thousand and 762 thousand shares of common stock subject to outstanding employee stock options and restricted stock units that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive.

Income Taxes

6 Months Ended

Feb. 28, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 9. Income Taxes

The Company recorded an income tax expense of $15 thousand and $3 thousand for the three months ended February 28, 2023 and February 28, 2022, respectively, and income tax expense of $25 thousand and $15 thousand for the six months ended February 28, 2023 and February 28, 2022, respectively. The Company’s effective tax rates for the three and six months ended February 28, 2023 substantially differed from the federal statutory tax rate of 21% primarily due to a valuation allowance for the Company’s deferred tax assets.

The Company continually monitors and performs an assessment of the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets using a “more likely than not” standard. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Based on the Company’s review of this evidence, management determined that a full valuation allowance against all of the Company’s net deferred tax assets at February 28, 2023 was appropriate.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Stock-based Compensation - Summary of Stock Option Activity under Stock Incentive Plan (Details) - Stock Incentive Plan - $ / shares	3 Months Ended
	Feb. 28, 2023	Nov. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options Outstanding, Number of shares underlying outstanding options, Beginning balance	706,621,000	675,942,000
Options Outstanding, Number of shares underlying outstanding options, Options granted	75,084,000	56,951,000
Options Outstanding, Number of shares underlying outstanding options, Options exercised	(27,858,000)	(2,491,000)
Options Outstanding, Number of shares underlying outstanding options, Options canceled/forfeited	(13,034,000)	(23,781,000)
Options Outstanding, Number of shares underlying outstanding options, Ending balance	740,813,000	706,621,000
Options Outstanding, Weighted Average Exercise Price Per Share, Beginning balance	$ 30.28	$ 27.12
Options Outstanding, Weighted Average Exercise Price Per Share, Options granted	60.62	73.20
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercised	19.13	12.82
Options Outstanding, Weighted Average Exercise Price Per Share, Options canceled/forfeited	40.72	46.47
Options Outstanding, Weighted Average Exercise Price Per Share, Ending balance	$ 33.57	$ 30.28

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 15	$ 3	$ 25	$ 15
Federal statutory tax rate	21.00%		21.00%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Condensed Balance Sheets - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022
Current assets:
Cash and cash equivalents	$ 22,294	$ 35,782
Accounts and other receivables	3,644	2,486
Inventories	1,436	1,120
Due from affiliate	7	156
Prepaid expenses and other current assets	3,450	2,852
Total current assets	30,831	42,396
Non-current assets:
Property and equipment – net	87,791	75,590
Operating lease right-of-use assets	90,129	79,990
Deposits and other assets	3,966	3,380
Total assets	212,717	201,356
Current liabilities:
Accounts payable	6,810	5,559
Accrued expenses and other current liabilities	2,356	3,731
Salaries and wages payable	5,800	5,955
Finance leases – current	179	507
Operating lease liabilities – current	8,538	7,992
Due to affiliate	439	285
Sales tax payable	1,341	1,240
Total current liabilities	25,463	25,269
Non-current liabilities:
Finance leases – non-current	16	30
Operating lease liabilities – non-current	94,329	82,280
Other liabilities	539	483
Total liabilities	120,347	108,062
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.001 par value; 1,000 shares authorized, no shares issued or outstanding
Additional paid-in capital	121,149	118,970
Accumulated deficit	(28,789)	(25,686)
Total stockholders' equity	92,370	93,294
Total liabilities and stockholders' equity	212,717	201,356
Class A
Stockholders' equity:
Common stock	9	9
Class B
Stockholders' equity:
Common stock	$ 1	$ 1

Leases - Summary of Maturities of Lease Liabilities Net of Lease Receivables (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022
Operating Leases
Remainder of 2023	$ 2,796
2024	6,867
2025	9,614
2026	9,549
2027	9,379
Thereafter	126,920
Total lease payments	165,125
Less: imputed interest	(62,258)
Present value of lease liabilities	102,867	$ 90,272
Finance Leases
Remainder of 2023	161
2024	36
2025	7
Total lease payments	204
Less: imputed interest	(9)
Present value of lease liabilities	$ 195	$ 537

Organization and Basis of Presentation - Additional Information (Details)	Dec. 28, 2022 USD ($)
Maximum
Organization and Basis of Presentation [Line Items]
Aggregate offering price of securities	$ 125,000,000.0

Balance Sheet Components - Schedule of Accounts and Other Receivables (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022
Receivables Net Current [Line Items]
Accounts and other receivables	$ 3,644	$ 2,486
Lease Receivables
Receivables Net Current [Line Items]
Accounts and other receivables	2,914	1,767
Credit Card and Other Receivables
Receivables Net Current [Line Items]
Accounts and other receivables	$ 730	$ 719

Balance Sheet Components (Tables)

6 Months Ended

Feb. 28, 2023

Property Plant And Equipment Net [Abstract]

Schedule of Accounts and Other Receivables

Accounts and Other Receivables


	February 28, 2023		August 31, 2022
	(amounts in thousands)
Lease receivables	$	2,914	$	1,767
Credit card and other receivables		730		719
Total accounts and other receivables	$	3,644	$	2,486

Schedule of Property and Equipment - Net

Property and Equipment - net


	February 28, 2023			August 31, 2022
	(amounts in thousands)
Leasehold improvements	$	66,227		$	56,668
Lease assets		6,148			6,166
Furniture and fixtures		28,468			21,759
Computer equipment		1,934			1,307
Vehicles		220			159
Software		942			921
Construction in progress		7,396			8,666
Property and equipment – gross		111,335			95,646
Less: accumulated depreciation and amortization		(23,544	)		(20,056	)
Total property and equipment – net	$	87,791		$	75,590

Related Party Transactions - Schedule of Related Party Reimbursements and Other Payments (Details) - Kura Japan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Related Party Transaction [Line Items]
Total related party transactions	$ 1,001	$ 438	$ 1,957	$ 911
Expatriate Salaries Expense
Related Party Transaction [Line Items]
Total related party transactions	33	41	54	83
Royalty Payments
Related Party Transaction [Line Items]
Total related party transactions	220	157	417	306
Travel and Other Administrative Expenses
Related Party Transaction [Line Items]
Total related party transactions	30	17	30	19
Purchases of Equipment
Related Party Transaction [Line Items]
Total related party transactions	$ 718	$ 223	$ 1,456	$ 503

Leases (Tables)

6 Months Ended

Feb. 28, 2023

Leases [Abstract]

Summary of Lease Related Costs

Lease related costs recognized in the statements of operations are as follows:


		Three Months Ended February 28,				Six Months Ended February 28,
		2023		2022		2023		2022
		(amounts in thousands)
Finance lease cost	Classification
Amortization of right-of-use assets	Depreciation and amortization expenses	$	129	$	143	$	364	$	279
Interest on lease liabilities	Interest expense		3		11		7		24
Total finance lease cost		$	132	$	154	$	371	$	303


		Three Months Ended February 28,				Six Months Ended February 28,
		2023		2022		2023		2022
		(amounts in thousands)
Operating lease cost	Classification
Operating lease cost	Occupancy and related expenses, other costs and general and administrative expenses	$	2,410	$	1,915	$	4,672	$	3,747
Variable lease cost	Occupancy and related expenses, and general and administrative expenses		799		453		1,444		889
Total operating lease cost		$	3,209	$	2,368	$	6,116	$	4,636

Summary of Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases is as follows:

Operating Leases


	February 28, 2023		August 31, 2022
	(amounts in thousands)
Right-of-use assets	$	90,129	$	79,990

Lease liabilities – current	$	8,538	$	7,992
Lease liabilities – non-current		94,329		82,280
Total lease liabilities	$	102,867	$	90,272

Finance Lease Assets – net


	February 28, 2023			August 31, 2022
	(amounts in thousands)
Property and equipment	$	6,148		$	6,166
Accumulated depreciation		(3,616	)		(3,348	)
Total property and equipment – net	$	2,532		$	2,818

Finance Leases Liabilities


	February 28, 2023		August 31, 2022
	(amounts in thousands)
Finance lease – current	$	179	$	507
Finance lease – non-current		16		30
Total finance lease liabilities	$	195	$	537



	Six months ended February 28,
	2023			2022
Weighted Average Remaining Lease Term (Years)
Operating leases		16.1			16.2
Finance leases		0.3			1.1

Weighted Average Discount Rate
Operating leases		6.5	%		6.4	%
Finance leases		4.7	%		4.6	%

Summary of Supplemental Disclosures of Cash Flow Information Related to Leases

Supplemental disclosures of cash flow information related to leases are as follows:


	Six Months Ended February 28,
	2023		2022
	(amounts in thousands)
Operating cash flows paid for operating lease liabilities	$	3,808	$	3,111
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$	11,782	$	9,243

Summary of Maturities of Lease Liabilities Net of Lease Receivables

Maturities of lease liabilities, net of lease receivables, were as follows:


	Operating Leases			Finance Leases
	(amounts in thousands)
Remainder of 2023	$	2,796		$	161
2024		6,867			36
2025		9,614			7
2026		9,549			—
2027		9,379			—
Thereafter		126,920			—
Total lease payments		165,125			204
Less: imputed interest		(62,258	)		(9	)
Present value of lease liabilities	$	102,867		$	195

Leases - Summary of Supplemental Disclosures of Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022
Leases [Abstract]
Operating cash flows paid for operating lease liabilities	$ 3,808	$ 3,111
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$ 11,782	$ 9,243

Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Sales	$ 43,944	$ 31,290	$ 83,262	$ 61,122
Restaurant operating costs:
Depreciation and amortization expenses	1,758	1,267	3,334	2,438
Other costs	5,866	4,344	11,187	7,954
Total restaurant operating costs	37,783	27,631	72,530	53,279
General and administrative expenses	7,122	5,454	13,764	10,814
Depreciation and amortization expenses	88	83	173	171
Total operating expenses	44,993	33,168	86,467	64,264
Operating loss	(1,049)	(1,878)	(3,205)	(3,142)
Other expense (income):
Interest expense	14	22	30	47
Interest income	(63)	(24)	(157)	(50)
Loss before income taxes	(1,000)	(1,876)	(3,078)	(3,139)
Income tax expense	15	3	25	15
Net loss	$ (1,015)	$ (1,879)	$ (3,103)	$ (3,154)
Net loss per Class A and Class B shares
Basic	$ (0.10)	$ (0.19)	$ (0.32)	$ (0.32)
Diluted	$ (0.10)	$ (0.19)	$ (0.32)	$ (0.32)
Weighted average Class A and Class B shares outstanding
Basic	9,801	9,712	9,795	9,711
Diluted	9,801	9,712	9,795	9,711
Food and Beverage Costs
Restaurant operating costs:
Cost of goods and services sold	$ 13,240	$ 9,376	$ 25,670	$ 18,333
Labor and Related Costs
Restaurant operating costs:
Cost of goods and services sold	13,854	10,342	26,389	20,052
Occupancy and Related Expenses
Restaurant operating costs:
Cost of goods and services sold	$ 3,065	$ 2,302	$ 5,950	$ 4,502

Debt - Additional Information (Details) - USD ($)	6 Months Ended
Debt - Additional Information (Details) - USD ($)	Feb. 28, 2023	Aug. 31, 2022	Apr. 10, 2020
Debt Instrument [Line Items]
Revolving credit line interest rate	130.00%
Revolving Credit Facility Agreement
Debt Instrument [Line Items]
Outstanding balance	$ 0
Remaining availability under credit agreement		$ 45,000,000.0
Revolving Credit Facility Agreement \| Kura Japan
Debt Instrument [Line Items]
Outstanding borrowings			$ 45,000,000.0

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Balance Sheet Components

6 Months Ended

Feb. 28, 2023

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Note 2. Balance Sheet Components

Accounts and Other Receivables


	February 28, 2023		August 31, 2022
	(amounts in thousands)
Lease receivables	$	2,914	$	1,767
Credit card and other receivables		730		719
Total accounts and other receivables	$	3,644	$	2,486

Property and Equipment - net


	February 28, 2023			August 31, 2022
	(amounts in thousands)
Leasehold improvements	$	66,227		$	56,668
Lease assets		6,148			6,166
Furniture and fixtures		28,468			21,759
Computer equipment		1,934			1,307
Vehicles		220			159
Software		942			921
Construction in progress		7,396			8,666
Property and equipment – gross		111,335			95,646
Less: accumulated depreciation and amortization		(23,544	)		(20,056	)
Total property and equipment – net	$	87,791		$	75,590

Depreciation and amortization expense for property and equipment was $1.8 million and $1.4 million for the three months ended February 28, 2023 and February 28, 2022, respectively, and was $3.5 million and $2.6 million for the six months ended February 28, 2023 and February 28, 2022, respectively.