Kura Sushi USA (KRUS) 10-Q 9 Jul 24 2024 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	May 31, 2024	Jul. 02, 2024
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
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		10,244,893
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,000,050

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	May 31, 2024	Aug. 31, 2023
Current assets:
Cash and cash equivalents	$ 59,405	$ 69,697
Short-term investments	1,250	8,542
Accounts and other receivables	5,510	5,048
Inventories	2,132	1,747
Prepaid expenses and other current assets	3,988	4,233
Total current assets	72,285	89,371
Non-current assets:
Property and equipment – net	130,663	106,427
Operating lease right-of-use assets	117,030	103,884
Deposits and other assets	4,753	4,977
Total assets	324,731	304,659
Current liabilities:
Accounts payable	8,063	7,248
Accrued expenses and other current liabilities	3,412	2,821
Salaries and wages payable	8,596	7,595
Operating lease liabilities – current	11,734	9,225
Sales tax payable	1,766	1,694
Total current liabilities	33,694	29,138
Non-current liabilities:
Operating lease liabilities – non-current	123,848	110,234
Other liabilities	763	646
Total liabilities	158,305	140,018
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	194,202	188,771
Accumulated deficit	(27,787)	(24,184)
Accumulated other comprehensive income	0	43
Total stockholders' equity	166,426	164,641
Total liabilities and stockholders' equity	324,731	304,659
Affiliated Entity [Member]
Current assets:
Due from affiliate		104
Current liabilities:
Due to affiliate	123	555
Class A
Stockholders' equity:
Common stock	10	10
Class B
Stockholders' equity:
Common stock	$ 1	$ 1

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	May 31, 2024	Aug. 31, 2023
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	10,243,000	10,147,000
Common stock, shares outstanding	10,243,000	10,147,000
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

Condensed Statements of Operati

Condensed Statements of Operations and Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Sales	$ 63,082	$ 49,238	$ 171,848	$ 132,500
Restaurant operating costs:
Depreciation and amortization expenses	3,124	1,975	8,294	5,309
Other costs	9,076	6,165	25,023	17,352
Total restaurant operating costs	55,287	40,826	151,596	113,356
General and administrative expenses	8,857	7,012	25,634	20,776
Depreciation and amortization expenses	107	92	318	265
Total operating expenses	64,251	47,930	177,548	134,397
Operating (loss) income	(1,169)	1,308	(5,700)	(1,897)
Other expense (income):
Interest expense	15	23	35	53
Interest income	(686)	(436)	(2,280)	(593)
(Loss) income before income taxes	(498)	1,721	(3,455)	(1,357)
Income tax expense	60	41	148	66
Net (loss) income	$ (558)	$ 1,680	$ (3,603)	$ (1,423)
Net (loss) income per Class A and Class B shares
Basic	$ (0.05)	$ 0.16	$ (0.32)	$ (0.14)
Diluted	$ (0.05)	$ 0.16	$ (0.32)	$ (0.14)
Weighted average Class A and Class B shares outstanding
Basic	11,188	10,485	11,167	10,028
Diluted	11,188	10,807	11,167	10,028
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]
Unrealized loss on short-term investments	$ (76)	$ (7)	$ (43)	$ (7)
Comprehensive (loss) income	(634)	1,673	(3,646)	(1,430)
Food and Beverage Costs
Restaurant operating costs:
Cost of goods and services sold	18,391	14,770	50,691	40,440
Labor and Related Costs
Restaurant operating costs:
Cost of goods and services sold	20,378	14,362	55,409	40,751
Occupancy and Related Expenses
Restaurant operating costs:
Cost of goods and services sold	$ 4,318	$ 3,554	$ 12,179	$ 9,504

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Class A	Class B	Common Stock Class A	Common Stock Class B	Additional Paid-in-Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
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
Stock-based compensation	650					650
Employee stock plan	51					51
Employee stock plan, shares				3
Net income (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
Net income (loss)	(1,423)
Ending balances at May. 31, 2023	159,740			$ 10	$ 1	186,845	(27,109)	$ (7)
Ending balance, shares at May. 31, 2023				10,101	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 income (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
Stock-based compensation	975					975
Employee stock plan	423					423
Employee stock plan, shares				17
Issuance of common stock in connection with follow-on public offering, net of underwriter discounts and issuance costs	64,299			$ 1		64,298
Issuance of common stock in connection with follow-on public offering, net of underwriter discounts and issuance costs, shares				1,265
Net income (loss)	1,680						1,680
Other comprehensive income (loss)	(7)							(7)
Ending balances at May. 31, 2023	159,740			$ 10	$ 1	186,845	(27,109)	(7)
Ending balance, shares at May. 31, 2023				10,101	1,000
Beginning balances at Aug. 31, 2023	164,641			$ 10	$ 1	188,771	(24,184)	43
Beginning balance, shares at Aug. 31, 2023		10,147,000	1,000,000	10,147	1,000
Stock-based compensation	1,034					1,034
Employee stock plan	110					110
Employee stock plan, shares				8
Net income (loss)	(2,047)						(2,047)
Other comprehensive income (loss)	3							3
Ending balances at Nov. 30, 2023	163,741			$ 10	$ 1	189,915	(26,231)	46
Ending balance, shares at Nov. 30, 2023				10,155	1,000
Beginning balances at Aug. 31, 2023	164,641			$ 10	$ 1	188,771	(24,184)	43
Beginning balance, shares at Aug. 31, 2023		10,147,000	1,000,000	10,147	1,000
Net income (loss)	(3,603)
Ending balances at May. 31, 2024	166,426			$ 10	$ 1	194,202	(27,787)
Ending balance, shares at May. 31, 2024		10,243,000	1,000,000	10,243	1,000
Beginning balances at Nov. 30, 2023	163,741			$ 10	$ 1	189,915	(26,231)	46
Beginning balance, shares at Nov. 30, 2023				10,155	1,000
Stock-based compensation	1,080					1,080
Employee stock plan	1,427					1,427
Employee stock plan, shares				71
Net income (loss)	(998)						(998)
Other comprehensive income (loss)	30							30
Ending balances at Feb. 29, 2024	165,280			$ 10	$ 1	192,422	(27,229)	76
Ending balance, shares at Feb. 29, 2024				10,226	1,000
Stock-based compensation	1,236					1,236
Employee stock plan	544					544
Employee stock plan, shares				17
Net income (loss)	(558)						(558)
Other comprehensive income (loss)	(76)							$ (76)
Ending balances at May. 31, 2024	$ 166,426			$ 10	$ 1	$ 194,202	$ (27,787)
Ending balance, shares at May. 31, 2024		10,243,000	1,000,000	10,243	1,000

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	May 31, 2024	May 31, 2023
Cash flows from operating activities
Net loss	$ (3,603)	$ (1,423)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	8,612	5,574
Stock-based compensation, net of amounts capitalized	3,169	2,570
Loss on disposal of property and equipment		53
Non-cash lease expense	3,407	2,820
Changes in operating assets and liabilities:
Accounts and other receivables	(587)	(230)
Inventories	(385)	(267)
Due from affiliate	104	156
Prepaid expenses and other current assets	1,326	(1,876)
Deposits and other assets	443	122
Accounts payable	11	(71)
Accrued expenses and other current liabilities	1,485	(1,176)
Salaries and wages payable	1,001	977
Operating lease liabilities	3	(341)
Due to affiliate	(23)	26
Sales tax payable	(20)	149
Net cash provided by operating activities	14,943	7,063
Cash flows from investing activities
Payments for property and equipment	(33,977)	(27,215)
Payments for initial direct costs	(309)	(320)
Payments for purchases of liquor licenses	(219)	(947)
Purchases of short-term investments	(3,251)	(8,749)
Redemption of short- term investments	10,499
Net cash used in investing activities	(27,257)	(37,231)
Cash flows from financing activities
Repayment of principal on finance leases	(60)	(446)
Taxes paid on vested restricted stock awards	(217)
Proceeds from exercise of stock options	2,299	1,007
Proceeds from the follow-on public offering, net of discounts and commissions		64,895
Payments of costs related to the follow-on offering		(596)
Net cash provided by financing activities	2,022	64,860
Decrease in cash and cash equivalents	(10,292)	34,692
Cash and cash equivalents, beginning of period	69,697	35,782
Cash and cash equivalents, end of period	59,405	70,474
Supplemental disclosures of cash flow information
Cash paid for income taxes	282	185
Noncash investing activities
Amounts unpaid for purchases of property and equipment	$ 1,276	$ 1,706

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	May 31, 2024	Feb. 29, 2024	Nov. 30, 2023	May 31, 2023	Feb. 28, 2023	Nov. 30, 2022	May 31, 2024	May 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (558)	$ (998)	$ (2,047)	$ 1,680	$ (1,015)	$ (2,088)	$ (3,603)	$ (1,423)

Insider Trading Arrangements

Insider Trading Arrangements	9 Months Ended
	May 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	May 31, 2024
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,” “our” 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, 2023. 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, 2023. 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, 2024 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 2024” and “fiscal year 2023” refer to the Company’s fiscal years ending August 31, 2024 and ended August 31, 2023, respectively. Use of Estimates Preparing 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. Short-Term Investments Short-term investments consist of certificates of deposits and Treasury bills. The Company considers all highly liquid investments with an original maturity date greater than three months but less than one year as short-term investments. The carrying value of the short-term investments is equivalent to their amortized cost basis. As of May 31, 2024 and August 31, 2023, short-term investments were $ 1.3 million and $ 8.5 million, respectively. The certificates of deposits are deposited at Federal Deposit Insurance Corporation (“FDIC”) insured banks. The certificates of deposits are in amounts of $ 250,000 and deposited in multiple banks to ensure that the entire deposit balance is eligible for FDIC insurance. Certificates of deposits and Treasury bills are classified as available-for-sale debt securities which are measured at fair value with unrealized gains or losses recorded in other comprehensive income (loss). As of May 31, 2024 , the Company recorded no unrealized gains or losses on short-term investments in accumulated other comprehensive income (loss). The Company reclassified $ 76 thousand out of accumulated other comprehensive income into earnings for the period related to maturities of certificates of deposits and a Treasury bill, which consisted of $ 75 thousand in realized gains on a Treasury bill and $ 1 thousand in realized gains on certificates of deposits. The Company determines realized ga ins or losses on the available-for-sale debt securities on a specific identification method basis. Base d on the evaluation of credit risk factors, the Company has concluded that an allowance for credit losses is unnecessary for its short-term investments. 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. The Company’s short-term investments consist of certificates of deposits and Treasury bills that are classified as available-for-sale debt securities which are measured at fair value with unrealized gains or losses recorded in other comprehensive income (loss). Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid and effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance in this update is effective for all public entities for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures.

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	May 31, 2024
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Components	Note 2. Balance Sheet Components Accounts and Other Receivables May 31, 2024 August 31, 2023 (amounts in thousands) Lease receivables $ 3,813 $ 3,973 Credit card and other receivables 1,697 1,075 Total accounts and other receivables $ 5,510 $ 5,048 Property and Equipment - net May 31, 2024 August 31, 2023 (amounts in thousands) Leasehold improvements $ 97,827 $ 75,472 Lease assets 6,229 6,247 Furniture and fixtures 49,114 34,213 Computer equipment 3,650 2,792 Vehicles 220 220 Software 1,017 1,016 Construction in progress 8,620 14,369 Property and equipment – gross 166,677 134,329 Less: accumulated depreciation and amortization ( 36,014 ) ( 27,902 ) Total property and equipment – net $ 130,663 $ 106,427 Depreciation and amortization expense for property and equipment was $ 3.2 million and $ 2.1 million for the three months ended May 31, 2024 and May 31, 2023 , respectively, and was $ 8.6 milli on and $ 5.6 million for the nine months ended May 31, 2024 and May 31, 2023 , respectively.

Leases

Leases	9 Months Ended
	May 31, 2024
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 finance leases are immaterial. 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 and comprehensive income (loss) are as follows: Three Months Ended May 31, Nine Months Ended May 31, 2024 2023 2024 2023 (amounts in thousands) Operating lease cost Classification Operating lease cost Occupancy and related expenses, other costs and general and administrative expenses $ 3,380 $ 3,208 $ 9,678 $ 7,450 Variable lease cost Occupancy and related expenses, and general and administrative expenses 992 1,072 2,567 2,307 Total operating lease cost $ 4,372 $ 4,280 $ 12,245 $ 9,757 Supplemental balance sheet information related to leases is as follows: Operating Leases May 31, 2024 August 31, 2023 (amounts in thousands) Right-of-use assets $ 117,030 $ 103,884 Lease liabilities – current $ 11,734 $ 9,225 Lease liabilities – non-current 123,848 110,234 Total lease liabilities $ 135,582 $ 119,459 Nine Months Ended May 31, 2024 2023 Weighted Average Remaining Lease Term (Years) Operating leases 16.5 16.3 Weighted Average Discount Rate Operating leases 7.1 % 6.6 % Supplemental disclosures of cash flow information related to leases are as follows: Nine Months Ended May 31, 2024 2023 (amounts in thousands) Operating cash flows paid for operating lease liabilities $ 7,769 $ 5,775 Operating right-of-use assets obtained in exchange for new operating lease liabilities $ 17,774 $ 18,415 As of May 31, 2024, the Company had an additional $ 44.7 million of operating leases related to restaurants for which the Company had not yet taken possession. Subsequent to May 31, 2024, the Company entered into two additional operating leases related to restaurants for which the Company has not yet taken possession. The lease liabilities associated with the leases after May 31, 2024 are $ 15.6 million . The operating leases are expected to commence in fiscal year 2025, with lease terms of up to 30 years. Maturities of lease liabilities, net of lease receivables, were as follows: Operating Leases (amounts in thousands) Remainder of 2024 $ 380 2025 9,940 2026 12,373 2027 13,111 2028 12,730 Thereafter 184,104 Total lease payments 232,638 Less: imputed interest ( 97,056 ) Present value of lease liabilities $ 135,582

Related Party Transactions

Related Party Transactions	9 Months Ended
	May 31, 2024
Related Party Transactions [Abstract]
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 statements of operations and comprehensive income (loss). 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 the use of certain of Kura Japan’s intellectual property rights, including, but not limited to, Kura Japan’s trademarks for “Kura Sushi,” “Mr. Fresh” 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 and comprehensive income (loss). 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: May 31, 2024 August 31, 2023 (amounts in thousands) Due from affiliate $ — $ 104 Due to affiliate $ 123 $ 555 Reimbursements and other payments by the Company to Kura Japan were as follows: Three Months Ended May 31, Nine Months Ended May 31 2024 2023 2024 2023 (amounts in thousands) Related party transactions: Expatriate salaries expense $ 33 $ 33 $ 124 $ 87 Royalty payments 314 246 859 663 Travel and other administrative expenses — — 6 30 Purchases of equipment 374 568 1,811 2,024 Total related party transactions $ 721 $ 847 $ 2,800 $ 2,804 Reimbursements by Kura Japan to the Company were $ 42 thousand and $ 7 thousand for the three months ended May 31, 2024 and May 31, 2023, respectively and were $ 264 thousand and $ 67 tho usand for the nine months ended May 31, 2024 and May 31, 2023, respectively. The reimbursements were primarily for directors and officers liability insurance, travel, professional fees and other administrative expenses.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	May 31, 2024
Share-Based Payment Arrangement [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 Weighted Average Outstanding — August 31, 2023 653,395 $ 34.25 Granted 16,360 $ 72.25 Exercised ( 7,241 ) $ 15.15 Cancelled/forfeited ( 3,816 ) $ 56.75 Outstanding — November 30, 2023 658,698 $ 35.27 Granted 49,420 $ 95.04 Exercised ( 64,581 ) $ 25.00 Cancelled/forfeited ( 6,786 ) $ 71.09 Outstanding — February 29, 2024 636,751 $ 40.57 Granted 3,199 $ 104.47 Exercised ( 16,391 ) $ 35.30 Cancelled/forfeited ( 2,169 ) $ 69.57 Outstanding — May 31, 2024 621,390 $ 40.94 The following table summarizes the restricted stock unit (“RSU”) activity under the Stock Incentive Plan: Number of Shares Weighted Average Outstanding — August 31, 2023 31,105 $ 69.88 Granted — — Vested ( 1,359 ) $ 73.58 Cancelled/forfeited ( 351 ) $ 62.14 Outstanding — November 30, 2023 29,395 $ 69.80 Granted 19,939 $ 98.13 Vested ( 8,095 ) $ 62.14 Cancelled/forfeited ( 436 ) $ 66.10 Outstanding — February 29, 2024 40,803 $ 85.20 Granted — — Vested ( 8 ) $ 62.14 Cancelled/forfeited ( 495 ) $ 83.73 Outstanding — May 31, 2024 40,300 $ 85.23 The total stock-based compensation recognized under the Stock Incentive Plan in the statements of operations and comprehensive income (loss) is as follows: Three Months Ended May 31, Nine Months Ended May 31, 2024 2023 2024 2023 (amounts in thousands) Restaurant-level stock-based compensation included in other costs $ 194 $ 163 $ 497 $ 382 Corporate-level stock-based compensation included in general and administrative expenses 1,003 812 2,672 2,188 Stock-based compensation, net of amounts capitalized 1,197 975 3,169 2,570 Amount capitalized to Property and Equipment - net 39 — 181 — Total stock-based compensation $ 1,236 $ 975 $ 3,350 $ 2,570

Debt

Debt	9 Months Ended
	May 31, 2024
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 May 31, 2024 and August 31, 2023, the Company had no o utstanding balance and $ 45.0 million of availability remaining under the Revolving Credit Agreement. For additional information, see “Note 4. Related Party Transactions.”

(Loss) Income Per Share

(Loss) Income Per Share	9 Months Ended
	May 31, 2024
Earnings Per Share [Abstract]
(Loss) Income Per Share	Note 7 . (Loss) Income Per Share The net income (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 had 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 income (loss) per share: Three Months Ended May 31, Nine Months Ended May 31, 2024 2023 2024 2023 Class A Class B Class A Class B Class A Class B Class A Class B (amounts in thousands, except per share data) Net income (loss) attributable to common stockholders $ ( 508 ) $ ( 50 ) $ 1,520 $ 160 $ ( 3,280 ) $ ( 323 ) $ ( 1,281 ) $ ( 142 ) Net income (loss) attributable to common stockholders – diluted $ ( 508 ) $ ( 50 ) $ 1,525 $ 155 $ ( 3,280 ) $ ( 323 ) $ ( 1,281 ) $ ( 142 ) Weighted average common shares outstanding – basic 10,188 1,000 9,485 1,000 10,167 1,000 9,028 1,000 Dilutive effect of stock-based awards — — 322 — — — — — Weighted average common shares outstanding – diluted 10,188 1,000 9,807 1,000 10,167 1,000 9,028 1,000 Net income (loss) per share attributable to common stockholders – basic $ ( 0.05 ) $ ( 0.05 ) $ 0.16 $ 0.16 $ ( 0.32 ) $ ( 0.32 ) $ ( 0.14 ) $ ( 0.14 ) Net income (loss) per share attributable to common stockholders – diluted $ ( 0.05 ) $ ( 0.05 ) $ 0.16 $ 0.16 $ ( 0.32 ) $ ( 0.32 ) $ ( 0.14 ) $ ( 0.14 ) The Company computes basic income (loss) per common share using net income (loss) and the weighted average number of common shares outstanding during the period, and computes diluted income (loss) per common share using net income (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 nine months ended May 31, 2024, there were 662 thousand shares of common stock subject to outstanding employee stock options and RSUs that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive. For the three months ended May 31, 2023 , there were 201 thousand shares of common stock subject to outstanding employee stock options and RSUs that were excluded from the calculation of diluted income per share because their inclusion would have been anti-dilutive. For the nine months ended May 31, 2023, there were 729 thousand shares of common stock subject to outstanding employee stock options and RSUs that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	May 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8. Commitments and Contingencies On January 19, 2024, two former employees initiated arbitration against the Company. Subsequently, on February 26, 2024, three additional former employees initiated a separate arbitration against the Company. Both sets of claimants allege violations of the Fair Labor Standards Act (“FLSA”) and violations of certain Washington, D.C. wage laws. Each arbitration will proceed separately. T he Company recorded an accrued liability of $ 0.6 million r elated to these matters within general and administrative expenses in the statements of operations during the three months ended May 31, 2024, as the liability associated with these matters became probable and reasonably estimable based on information available to the Company. As the Company receives new information, it will reevaluate its estimated liability, which may exceed the amount accrued and could adversely affect the Company’s financial position, results of operations or cash flows. Th e 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 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.

Income Taxes

Income Taxes	9 Months Ended
	May 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Note 9. Income Taxes The Company recorded an income tax expense of $ 60 thousand and $ 41 thousand for the three months ended May 31, 2024 and May 31, 2023, respectively and income tax expense of $ 148 thousand and $ 66 thousand for the nine months ended May 31, 2024 and May 31, 2023, respectively. The Company’s effective tax rates for the three and nine months ended May 31, 2024 substantially differed from the federal statutory tax rate of 21 % primarily due to a valuation allowance for the Company’s deferred tax assets and permanent difference related to employer tip credit. 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 May 31, 2024 was appropriate.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	May 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 10. Fair Value Measurements The following table sets forth the Company’s assets measured at fair value on a recurring basis as of May 31, 2024. Level 1 Level 2 Level 3 Total (amounts in thousands) Assets: Certificates of deposits $ — $ 1,250 $ — $ 1,250 Treasury bills — — — — Total assets at fair value $ — $ 1,250 $ — $ 1,250 The Company’s cash and cash equivalents include cash on hand, deposits in banks, certificates of deposits and money market funds. Due to their short-term nature, the carrying amounts reported in the accompanying balance sheets approximate the fair value of cash and cash equivalents. The fair value of our certificates of deposits are considered using Level 2 inputs of the fair value hierarchy. Level 2 inputs are based on market data that include factors such as interest rates, market and pricing activity and other market-based valuation techniques. The Company determines realized gains or losses on the available-for-sale debt securities on a specific identification method basis.

Organization and Basis of Pre_2

Organization and Basis of Presentation (Policies)	9 Months Ended
	May 31, 2024
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, 2023. 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, 2023. 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, 2024 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 2024” and “fiscal year 2023” refer to the Company’s fiscal years ending August 31, 2024 and ended August 31, 2023, respectively.
Use of Estimates	Use of Estimates Preparing 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.
Short-Term Investments	Short-Term Investments Short-term investments consist of certificates of deposits and Treasury bills. The Company considers all highly liquid investments with an original maturity date greater than three months but less than one year as short-term investments. The carrying value of the short-term investments is equivalent to their amortized cost basis. As of May 31, 2024 and August 31, 2023, short-term investments were $ 1.3 million and $ 8.5 million, respectively. The certificates of deposits are deposited at Federal Deposit Insurance Corporation (“FDIC”) insured banks. The certificates of deposits are in amounts of $ 250,000 and deposited in multiple banks to ensure that the entire deposit balance is eligible for FDIC insurance. Certificates of deposits and Treasury bills are classified as available-for-sale debt securities which are measured at fair value with unrealized gains or losses recorded in other comprehensive income (loss). As of May 31, 2024 , the Company recorded no unrealized gains or losses on short-term investments in accumulated other comprehensive income (loss). The Company reclassified $ 76 thousand out of accumulated other comprehensive income into earnings for the period related to maturities of certificates of deposits and a Treasury bill, which consisted of $ 75 thousand in realized gains on a Treasury bill and $ 1 thousand in realized gains on certificates of deposits. The Company determines realized ga ins or losses on the available-for-sale debt securities on a specific identification method basis. Base d on the evaluation of credit risk factors, the Company has concluded that an allowance for credit losses is unnecessary for its short-term investments.
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. The Company’s short-term investments consist of certificates of deposits and Treasury bills that are classified as available-for-sale debt securities which are measured at fair value with unrealized gains or losses recorded in other comprehensive income (loss).
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid and effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance in this update is effective for all public entities for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures.

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	May 31, 2024
Property, Plant and Equipment, Net [Abstract]
Schedule of Accounts and Other Receivables	Accounts and Other Receivables May 31, 2024 August 31, 2023 (amounts in thousands) Lease receivables $ 3,813 $ 3,973 Credit card and other receivables 1,697 1,075 Total accounts and other receivables $ 5,510 $ 5,048
Schedule of Property and Equipment Net	Property and Equipment - net May 31, 2024 August 31, 2023 (amounts in thousands) Leasehold improvements $ 97,827 $ 75,472 Lease assets 6,229 6,247 Furniture and fixtures 49,114 34,213 Computer equipment 3,650 2,792 Vehicles 220 220 Software 1,017 1,016 Construction in progress 8,620 14,369 Property and equipment – gross 166,677 134,329 Less: accumulated depreciation and amortization ( 36,014 ) ( 27,902 ) Total property and equipment – net $ 130,663 $ 106,427

Leases (Tables)

Leases (Tables)	9 Months Ended
	May 31, 2024
Leases [Abstract]
Summary of Lease Related Costs	Lease related costs recognized in the statements of operations and comprehensive income (loss) are as follows: Three Months Ended May 31, Nine Months Ended May 31, 2024 2023 2024 2023 (amounts in thousands) Operating lease cost Classification Operating lease cost Occupancy and related expenses, other costs and general and administrative expenses $ 3,380 $ 3,208 $ 9,678 $ 7,450 Variable lease cost Occupancy and related expenses, and general and administrative expenses 992 1,072 2,567 2,307 Total operating lease cost $ 4,372 $ 4,280 $ 12,245 $ 9,757
Summary of Supplemental Balance Sheet Information	Supplemental balance sheet information related to leases is as follows: Operating Leases May 31, 2024 August 31, 2023 (amounts in thousands) Right-of-use assets $ 117,030 $ 103,884 Lease liabilities – current $ 11,734 $ 9,225 Lease liabilities – non-current 123,848 110,234 Total lease liabilities $ 135,582 $ 119,459 Nine Months Ended May 31, 2024 2023 Weighted Average Remaining Lease Term (Years) Operating leases 16.5 16.3 Weighted Average Discount Rate Operating leases 7.1 % 6.6 %
Summary of Supplemental Disclosures of Cash Flow Information Related to Leases	Supplemental disclosures of cash flow information related to leases are as follows: Nine Months Ended May 31, 2024 2023 (amounts in thousands) Operating cash flows paid for operating lease liabilities $ 7,769 $ 5,775 Operating right-of-use assets obtained in exchange for new operating lease liabilities $ 17,774 $ 18,415
Summary of Maturities of Lease Liabilities Net of Lease Receivables	Maturities of lease liabilities, net of lease receivables, were as follows: Operating Leases (amounts in thousands) Remainder of 2024 $ 380 2025 9,940 2026 12,373 2027 13,111 2028 12,730 Thereafter 184,104 Total lease payments 232,638 Less: imputed interest ( 97,056 ) Present value of lease liabilities $ 135,582

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	May 31, 2024
Related Party Transactions [Abstract]
Schedule of Related Party Transactions Due to and from Affiliates	Balances with Kura Japan are as follows: May 31, 2024 August 31, 2023 (amounts in thousands) Due from affiliate $ — $ 104 Due to affiliate $ 123 $ 555
Schedule of Related Party Reimbursements and Other Payments	Reimbursements and other payments by the Company to Kura Japan were as follows: Three Months Ended May 31, Nine Months Ended May 31 2024 2023 2024 2023 (amounts in thousands) Related party transactions: Expatriate salaries expense $ 33 $ 33 $ 124 $ 87 Royalty payments 314 246 859 663 Travel and other administrative expenses — — 6 30 Purchases of equipment 374 568 1,811 2,024 Total related party transactions $ 721 $ 847 $ 2,800 $ 2,804

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	May 31, 2024
Share-Based Payment Arrangement [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 Weighted Average Outstanding — August 31, 2023 653,395 $ 34.25 Granted 16,360 $ 72.25 Exercised ( 7,241 ) $ 15.15 Cancelled/forfeited ( 3,816 ) $ 56.75 Outstanding — November 30, 2023 658,698 $ 35.27 Granted 49,420 $ 95.04 Exercised ( 64,581 ) $ 25.00 Cancelled/forfeited ( 6,786 ) $ 71.09 Outstanding — February 29, 2024 636,751 $ 40.57 Granted 3,199 $ 104.47 Exercised ( 16,391 ) $ 35.30 Cancelled/forfeited ( 2,169 ) $ 69.57 Outstanding — May 31, 2024 621,390 $ 40.94
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: Number of Shares Weighted Average Outstanding — August 31, 2023 31,105 $ 69.88 Granted — — Vested ( 1,359 ) $ 73.58 Cancelled/forfeited ( 351 ) $ 62.14 Outstanding — November 30, 2023 29,395 $ 69.80 Granted 19,939 $ 98.13 Vested ( 8,095 ) $ 62.14 Cancelled/forfeited ( 436 ) $ 66.10 Outstanding — February 29, 2024 40,803 $ 85.20 Granted — — Vested ( 8 ) $ 62.14 Cancelled/forfeited ( 495 ) $ 83.73 Outstanding — May 31, 2024 40,300 $ 85.23
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 and comprehensive income (loss) is as follows: Three Months Ended May 31, Nine Months Ended May 31, 2024 2023 2024 2023 (amounts in thousands) Restaurant-level stock-based compensation included in other costs $ 194 $ 163 $ 497 $ 382 Corporate-level stock-based compensation included in general and administrative expenses 1,003 812 2,672 2,188 Stock-based compensation, net of amounts capitalized 1,197 975 3,169 2,570 Amount capitalized to Property and Equipment - net 39 — 181 — Total stock-based compensation $ 1,236 $ 975 $ 3,350 $ 2,570

(Loss) Income Per Share (Tables

(Loss) Income Per Share (Tables)	9 Months Ended
	May 31, 2024
Earnings Per Share [Abstract]
Computation of Basic and Diluted Income (Loss) Per Share	The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share: Three Months Ended May 31, Nine Months Ended May 31, 2024 2023 2024 2023 Class A Class B Class A Class B Class A Class B Class A Class B (amounts in thousands, except per share data) Net income (loss) attributable to common stockholders $ ( 508 ) $ ( 50 ) $ 1,520 $ 160 $ ( 3,280 ) $ ( 323 ) $ ( 1,281 ) $ ( 142 ) Net income (loss) attributable to common stockholders – diluted $ ( 508 ) $ ( 50 ) $ 1,525 $ 155 $ ( 3,280 ) $ ( 323 ) $ ( 1,281 ) $ ( 142 ) Weighted average common shares outstanding – basic 10,188 1,000 9,485 1,000 10,167 1,000 9,028 1,000 Dilutive effect of stock-based awards — — 322 — — — — — Weighted average common shares outstanding – diluted 10,188 1,000 9,807 1,000 10,167 1,000 9,028 1,000 Net income (loss) per share attributable to common stockholders – basic $ ( 0.05 ) $ ( 0.05 ) $ 0.16 $ 0.16 $ ( 0.32 ) $ ( 0.32 ) $ ( 0.14 ) $ ( 0.14 ) Net income (loss) per share attributable to common stockholders – diluted $ ( 0.05 ) $ ( 0.05 ) $ 0.16 $ 0.16 $ ( 0.32 ) $ ( 0.32 ) $ ( 0.14 ) $ ( 0.14 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	May 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair Value on a Recurring Basis	The following table sets forth the Company’s assets measured at fair value on a recurring basis as of May 31, 2024. Level 1 Level 2 Level 3 Total (amounts in thousands) Assets: Certificates of deposits $ — $ 1,250 $ — $ 1,250 Treasury bills — — — — Total assets at fair value $ — $ 1,250 $ — $ 1,250

Organization and Basis of Pre_3

Organization and Basis of Presentation - Additional Information (Details) - USD ($)	9 Months Ended
	May 31, 2024	Aug. 31, 2023
Organization and Basis of Presentation [Line Items]
Short-term investments	$ 1,250,000	$ 8,542,000
Accumulated other comprehensive income into earnings	0	$ 43,000
Certificates of Deposit
Organization and Basis of Presentation [Line Items]
Short-term investments	250,000
Realized gains on short-term investments	1,000
Treasury Bills
Organization and Basis of Presentation [Line Items]
Accumulated other comprehensive income into earnings	76,000
Realized gains on short-term investments	$ 75,000

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Accounts and Other Receivables (Details) - USD ($) $ in Thousands	May 31, 2024	Aug. 31, 2023
Receivables Net Current [Line Items]
Accounts and other receivables	$ 5,510	$ 5,048
Lease Receivables
Receivables Net Current [Line Items]
Accounts and other receivables	3,813	3,973
Credit Card and Other Receivables
Receivables Net Current [Line Items]
Accounts and other receivables	$ 1,697	$ 1,075

Balance Sheet Components - Sc_2

Balance Sheet Components - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	May 31, 2024	Aug. 31, 2023
Property Plant And Equipment [Line Items]
Property and equipment - gross	$ 166,677	$ 134,329
Accumulated depreciation	(36,014)	(27,902)
Total property and equipment – net	130,663	106,427
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment - gross	97,827	75,472
Lease Assets
Property Plant And Equipment [Line Items]
Property and equipment - gross	6,229	6,247
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment - gross	49,114	34,213
Computer Equipment
Property Plant And Equipment [Line Items]
Property and equipment - gross	3,650	2,792
Vehicles
Property Plant And Equipment [Line Items]
Property and equipment - gross	220	220
Software
Property Plant And Equipment [Line Items]
Property and equipment - gross	1,017	1,016
Construction in Progress
Property Plant And Equipment [Line Items]
Property and equipment - gross	$ 8,620	$ 14,369

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Property, Plant and Equipment, Net [Abstract]
Depreciation and amortization expenses	$ 3,200	$ 2,100	$ 8,612	$ 5,574

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	May 31, 2024	Jun. 01, 2024
Lessee Lease Description [Line Items]
Operating and finance leases, remaining lease start range terms description	less than 1 year
Operating lease liability not yet commenced, liability	$ 44.7
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
Subsequent Event
Lessee Lease Description [Line Items]
Operating lease liability not yet commenced, liability		$ 15.6
Subsequent Event | Maximum
Lessee Lease Description [Line Items]
Operating lease liabilities not yet commenced, lease term		30 years

Leases - Summary of Lease Relat

Leases - Summary of Lease Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Operating lease cost
Operating lease cost	$ 3,380	$ 3,208	$ 9,678	$ 7,450
Variable lease cost	992	1,072	2,567	2,307
Total operating lease cost	$ 4,372	$ 4,280	$ 12,245	$ 9,757

Leases - Summary of Operating L

Leases - Summary of Operating Leases (Details) - USD ($) $ in Thousands	May 31, 2024	Aug. 31, 2023
Leases [Abstract]
Right-of-use assets	$ 117,030	$ 103,884
Lease liabilities – current	11,734	9,225
Lease liabilities – non-current	123,848	110,234
Total lease liabilities	$ 135,582	$ 119,459

Leases - Summary of Weighted Av

Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)	May 31, 2024	May 31, 2023
Weighted Average Remaining Lease Term (Years)
Operating leases	16 years 6 months	16 years 3 months 18 days
Weighted Average Discount Rate
Operating leases	7.10%	6.60%

Leases - Summary of Supplementa

Leases - Summary of Supplemental Disclosures of Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	9 Months Ended
	May 31, 2024	May 31, 2023
Leases [Abstract]
Operating cash flows paid for operating lease liabilities	$ 7,769	$ 5,775
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$ 17,774	$ 18,415

Leases - Summary of Maturities

Leases - Summary of Maturities of Lease Liabilities Net of Lease Receivables (Details) - USD ($) $ in Thousands	May 31, 2024	Aug. 31, 2023
Operating Leases
Remainder of 2024	$ 380
2025	9,940
2026	12,373
2027	13,111
2028	12,730
Thereafter	184,104
Total lease payments	232,638
Less: imputed interest	(97,056)
Present value of lease liabilities	$ 135,582	$ 119,459

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - Kura Japan - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2019	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023	Apr. 10, 2020
Professional Fees, Travel and Other Administrative Expenses
Related Party Transaction [Line Items]
Reimbursements by related party		$ 42	$ 7	$ 264	$ 67
Revolving Credit Facility Agreement | COVID-19
Related Party Transaction [Line Items]
Credit facility maximum borrowing capacity						$ 45,000
Amended and Restated Exclusive License Agreement
Related Party Transaction [Line Items]
Royalty fee of net sales	0.50%

Related Party Transactions - Sc

Related Party Transactions - Schedule of Related Party Transactions Due to and from Affiliates (Details) - Kura Japan - USD ($) $ in Thousands	May 31, 2024	Aug. 31, 2023
Related Party Transaction [Line Items]
Due from affiliate		$ 104
Due to affiliate	$ 123	$ 555

Related Party Transactions - _2

Related Party Transactions - Schedule of Related Party Reimbursements and Other Payments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Related Party Transaction [Line Items]
Total related party transactions	$ 55,287	$ 40,826	$ 151,596	$ 113,356
Kura Japan
Related Party Transaction [Line Items]
Total related party transactions	721	847	2,800	2,804
Expatriate Salaries Expense | Kura Japan
Related Party Transaction [Line Items]
Total related party transactions	33	33	124	87
Royalty Payments | Kura Japan
Related Party Transaction [Line Items]
Total related party transactions	314	246	859	663
Travel and Other Administrative Expenses | Kura Japan
Related Party Transaction [Line Items]
Total related party transactions			6	30
Purchases of Equipment | Kura Japan
Related Party Transaction [Line Items]
Total related party transactions	$ 374	$ 568	$ 1,811	$ 2,024

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Stock Option Activity under Stock Incentive Plan (Details) - Stock Incentive Plan - $ / shares	3 Months Ended
	May 31, 2024	Feb. 29, 2024	Nov. 30, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options Outstanding, Number of shares underlying outstanding options, Beginning balance	636,751	658,698	653,395
Options Outstanding, Number of shares underlying outstanding options, Options granted	3,199	49,420	16,360
Options Outstanding, Number of shares underlying outstanding options, Options exercised	(16,391)	(64,581)	(7,241)
Options Outstanding, Number of shares underlying outstanding options, Options cancelled/forfeited	(2,169)	(6,786)	(3,816)
Options Outstanding, Number of shares underlying outstanding options, Ending balance	621,390	636,751	658,698
Options Outstanding, Weighted Average Exercise Price Per Share, Beginning balance	$ 40.57	$ 35.27	$ 34.25
Options Outstanding, Weighted Average Exercise Price Per Share, Options granted	104.47	95.04	72.25
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercised	35.3	25	15.15
Options Outstanding, Weighted Average Exercise Price Per Share, Options canceled/forfeited	69.57	71.09	56.75
Options Outstanding, Weighted Average Exercise Price Per Share, Ending balance	$ 40.94	$ 40.57	$ 35.27

Stock-based Compensation - Su_2

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
	May 31, 2024	Feb. 29, 2024	Nov. 30, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, Beginning balance	40,803	29,395	31,105
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, RSUs granted		19,939
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, RSUs vested	(8)	(8,095)	(1,359)
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, RSUs cancelled/forfeited	(495)	(436)	(351)
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, Ending balance	40,300	40,803	29,395
Weighted average exercise price per share, RSUs outstanding Beginning	$ 85.2	$ 69.8	$ 69.88
Weighted average exercise price per share, RSUs granted		98.13
Weighted average exercise price per share, RSUs vested	62.14	62.14	73.58
Weighted average exercise price per share, RSUs cancelled/forfeited	83.73	66.1	62.14
Weighted average exercise price per share, RSUs outstanding Endining	$ 85.23	$ 85.2	$ 69.8

Stock-based Compensation - Su_3

Stock-based Compensation - Summary of Stock Based Compensation Recognized under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	$ 1,197	$ 975	$ 3,169	$ 2,570
Total stock-based compensation	1,236	975	3,350	2,570
Restaurant-level Stock Based Compensation Included In Other Costs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	194	163	497	382
Corporate-level Stock Based Compensation Included In General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	1,003	$ 812	2,672	$ 2,188
Amount Capitalized to Property and Equipment - net
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation cost capitalized to Property and Equipment - net	$ 39		$ 181

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	9 Months Ended
	May 31, 2024	Aug. 31, 2023	Apr. 10, 2020
Debt Instrument [Line Items]
Revolving credit line interest rate	130%
Revolving Credit Facility Agreement
Debt Instrument [Line Items]
Outstanding balance	$ 0
Remaining availability under credit agreement		$ 45,000,000
Revolving Credit Facility Agreement | Kura Japan
Debt Instrument [Line Items]
Outstanding borrowings			$ 45,000,000

(Loss) Income Per Share - Compu

(Loss) Income 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		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Earnings Per Share Diluted [Line Items]
Weighted average common shares outstanding – basic	11,188	10,485	11,167	10,028
Diluted	11,188	10,807	11,167	10,028
Basic	$ (0.05)	$ 0.16	$ (0.32)	$ (0.14)
Diluted	$ (0.05)	$ 0.16	$ (0.32)	$ (0.14)
Class A
Earnings Per Share Diluted [Line Items]
Net income (loss) attributable to common stockholders	$ (508)	$ 1,520	$ (3,280)	$ (1,281)
Net income (loss) attributable to common stockholders - diluted	$ (508)	$ 1,525	$ (3,280)	$ (1,281)
Weighted average common shares outstanding – basic	10,188	9,485	10,167	9,028
Dilutive effect of stock-based awards		322
Diluted	10,188	9,807	10,167	9,028
Basic	$ (0.05)	$ 0.16	$ (0.32)	$ (0.14)
Diluted	$ (0.05)	$ 0.16	$ (0.32)	$ (0.14)
Class B
Earnings Per Share Diluted [Line Items]
Net income (loss) attributable to common stockholders	$ (50)	$ 160	$ (323)	$ (142)
Net income (loss) attributable to common stockholders - diluted	$ (50)	$ 155	$ (323)	$ (142)
Weighted average common shares outstanding – basic	1,000	1,000	1,000	1,000
Diluted	1,000	1,000	1,000	1,000
Basic	$ (0.05)	$ 0.16	$ (0.32)	$ (0.14)
Diluted	$ (0.05)	$ 0.16	$ (0.32)	$ (0.14)

(Loss) Income Per Share - Addit

(Loss) Income Per Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
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	662	201	662	729

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Millions			3 Months Ended
	Feb. 26, 2024 Employees	Jan. 19, 2024 Employees	May 31, 2024 USD ($)
Loss Contingencies [Line Items]
Number of former employees initiated arbitration against company | Employees	3	2
General and Administrative Expenses
Loss Contingencies [Line Items]
Accrued liability | $			$ 0.6

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 60	$ 41	$ 148	$ 66
Federal statutory tax rate			21%

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value Recurring $ in Thousands	May 31, 2024 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 1,250
Certificates of Deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	1,250
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	1,250
Level 2 | Certificates of Deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 1,250