10 Small Cap Stocks with Huge Upside Potential

7. Kura Sushi USA, Inc. (NASDAQ:KRUS)

Upside Potential: 97%

Market Capitalization: $622.611 million

Kura Sushi USA, Inc. (NASDAQ:KRUS) is a technology-enabled Japanese restaurant in the United States. The company was formerly known as Kula Sushi USA, Inc. until it revised its name in 2017. This California-based restaurant chain mainly provides access to on-demand ordering screens, plate slots, Bikkura-Pon rewards machines, and express conveyor belts. Here, authentic Japanese cuisine, including Sweet Shrimp, Tuna, Garlic Tuna Steak, and Salmon, is offered through innovative and advanced models.

Belonging to a small circle of high-growth restaurant stocks, Kura Sushi USA, Inc. (NASDAQ:KRUS) has gained a lot of attention, particularly from Wall Street. There’s hardly any debate. The company’s double-digit growth year after year, robust debt management, and considerably high restaurant-level margins are just a few reasons to believe in the stock. Who doesn’t love good sushi, especially if it comes with huge upside potential?

Its speed is what stands out the most. With plans to open around 14 restaurants in 2025, Kura Sushi USA, Inc. (NASDAQ:KRUS) is maintaining a growth rate of nearly 20% YoY. Not only this, but the company is gearing up to expand in even more locations in the next fiscal year by adopting a real market strategy that aids in maximizing its potential.

But expansion isn’t the only growth driver for Kura Sushi USA, Inc. (NASDAQ:KRUS). The company recently unveiled an upgraded reservations strategy and a self-service system with an emphasis on operations. When we view this with the ‘Perfect Pair’ promotion and pricing techniques, despite its weak IP calendar in the first half of FY 2025, we can say that the next half will show a somewhat different picture. Todd Brooks, an analyst at Benchmark, maintains a Buy rating with a price target of $100. The analyst considers Kura Sushi a top pick in the dining industry as it is one of the best stocks with the biggest upside.