Why Kura Sushi USA was such a tasty stock this week

While there has been little news of note directly related to the Japanese restaurant chain operator Kura Sushi USA (KRUS 9.43%) in recent days, an analyst move on the stock and some unusual news from its parent company have combined to boost the stock’s value. By early Friday morning, it had posted a nearly 24 percent gain in price for the week to date, according to data compiled by S&P Global Market Intelligence.

Setting a strange new record

Kura Sushi USA got some free publicity thanks to that news. The company is a subsidiary of Japan-based Kura Sushi, which announced midweek that it will 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 longest conveyor belt in the world. This automated serving tool will span a total of 442 feet for the sole purpose of delivering food and beverages to restaurant customers. Almost needless to say, this will be Kura Sushi’s biggest selling point in terms of capacity, with enough room for 338 people. The restaurant is slated to open in April 2025, likely to coincide with the start of the Expo.

That news hit the headlines a day after that coverage was initiated by Northcoast Research’s Jim Sanderson. He labeled Kura Sushi USA — basically the subsidiary that contains its U.S. operations — as a buy with a price target of $79 a share.

An oldie but a goodie

Conveyor belt sushi is one of those culinary novelties that never really went away. It’s still a fun way to grab a meal with fellow sushi aficionados, and given Kura Sushi’s latest move, obviously another enticing way to throw down food and drinks. We’ll see if the company’s U.S. unit can live up to the inflated expectations that come with any increase in the stock price.