Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Kura Sushi (NASDAQ: KRUS) and its peers.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 12 sit-down dining stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Kura Sushi (NASDAQ: KRUS)

Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ: KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology.

Kura Sushi reported revenues of $79.45 million, up 20.4% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations.

Hajime Uba, President and Chief Executive Officer of Kura Sushi, stated, “I’m incredibly proud of what our team achieved during fiscal 2025 as we delivered a strong class of restaurant openings, adding a record of 15 new locations. We also successfully managed our corporate G&A expenses, resulting in an annual adjusted EBITDA growth of over 30%. These accomplishments are particularly noteworthy given the volatile consumer environment and tariff pressures we navigated throughout the year, which have negatively impacted our top-line results and restaurant-level margins. Nevertheless, our team remains resilient and we continue to believe that our focus on execution has positioned us well for continued growth in fiscal 2026.”

Kura Sushi scored the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 12.7% since reporting and currently trades at $46.37.

Read our full report on Kura Sushi here, it’s free for active Edge members.

Best Q3: Bloomin' Brands (NASDAQ: BLMN)

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ: BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $928.8 million, down 10.6% year on year, outperforming analysts’ expectations by 2.7%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.7% since reporting. It currently trades at $6.33.

Is now the time to buy Bloomin' Brands? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: Denny's (NASDAQ: DENN)

Open around the clock, Denny’s (NASDAQ: DENN) is a chain of diner restaurants serving breakfast and traditional American fare.

Denny's reported revenues of $113.2 million, up 1.3% year on year, falling short of analysts’ expectations by 3.2%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 49.9% since the results and currently trades at $6.17.

Read our full analysis of Denny’s results here.

First Watch (NASDAQ: FWRG)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ: FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

First Watch reported revenues of $316 million, up 25.6% year on year. This print topped analysts’ expectations by 1.9%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ same-store sales estimates and an impressive beat of analysts’ EBITDA estimates.

First Watch achieved the fastest revenue growth among its peers. The stock is up 11% since reporting and currently trades at $17.63.

Read our full, actionable report on First Watch here, it’s free for active Edge members.

Red Robin (NASDAQ: RRGB)

Known for its bottomless steak fries, Red Robin (NASDAQ: RRGB) is a chain of casual restaurants specializing in burgers and general American fare.

Red Robin reported revenues of $265.1 million, down 3.5% year on year. This result beat analysts’ expectations by 3.3%. It was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Red Robin pulled off the biggest analyst estimates beat among its peers. The stock is down 3.4% since reporting and currently trades at $4.54.

Read our full, actionable report on Red Robin here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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