What happened

Kura Sushi USA (NASDAQ:KRUS) was the most delectable restaurant stock on the market Wednesday, zooming 23% higher on the day. A very encouraging third quarter, combined with several price target upgrades, was the reason.

So what

In Kura's Q3, the figures for which were published after market hours on Tuesday, the company showed it is making a rapid comeback from the privations of the coronavirus pandemic. Revenue increased nearly sevenfold on a year-over-year basis to land at almost $18.5 million. Non-GAAP net loss narrowed considerably across that stretch, to $4.5 million ($0.54 per share) from the Q3 2020 shortfall of $10.7 million.

Young boy enjoying a sushi meal.

Image source: Getty Images.

Collectively, analysts tracking the stock were anticipating only $15.5 million in revenue, although they correctly prognosticated the per-share loss.

Kura said that diners are enthusiastically returning to its restaurants, adding that all are now operating at full capacity.

That could propel the company's results well higher. It quoted CEO Hajime Uba as saying that "Fiscal 2021 was a record development year for Kura, and we expect to maintain this growth momentum in fiscal 2022."

Now what

Several of those analysts clearly agree. In the wake of the results, Peter Saleh of BTIG cranked his price target on Kura stock 25% higher (to $50 per share), while maintaining his buy rating. Craig-Hallum's Jeremy Hamblin is also keeping his buy recommendation on the shares, with a near-matching price target lift from $40 to $48.

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