The Japanese-inspired chain now expects annual revenue to land between $330.5 million and $331.5 million, down from its earlier projection of up to $335 million. Revenue for the third quarter reached $85.9 million—a 16% increase, yet still missing analyst targets of $86.5 million. While a 4.7% rise in menu pricing helped cushion the blow, it could not fully offset the decline in diners.

Net income slid to $423,000, or 3 cents per share, compared to $565,000 in the same period last year. CEO Hajime Uba emphasized that the firm remains focused on achieving sustainable margin growth and restoring restaurant-level operating profits to 20%. Investors reacted sharply to the news, erasing the stock's 1% gain for the year as shares dropped to $47.