Kura Sushi ( KRUS ) had been sliding with the market after the whole ‘ Liberation Day ’ news and some pretty bleak sentiment. But all it tookI am an Equity Analyst and Accountant specializing in restaurant stocks, with a solid foundation in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership. As the founder of Goulart's Restaurant Stocks, I lead a company focused on analyzing restaurant stocks in the U.S. market. Our coverage spans multiple segments, incl ...

Kura Sushi USA, Inc. (KRUS) reported second-quarter fiscal 2025 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line increased year over year, while the bottom line fell from the prior-year quarter’s figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Management pointed out meaningful progress across key initiatives, including tapping into new market opportunities following a successful launch in Bakersfield, advancing its intellectual property p ...

Financial Data and Key Metrics Changes - Total sales for the fiscal second quarter were $64.9 million, compared to $57.3 million in the prior year period, representing a growth of approximately 28% [25] - Comparable restaurant sales performance was negative 5.3%, with traffic down 8.5% and price/mix up 3.2% [11][25] - Restaurant-level operating profit margin decreased to 17.3% from 19.6% in the prior year due to sales deleverage [13][28] - Net loss was $3.8 million or negative $0.31 per share, compared to a net loss of $1 million or negative $0.09 per share in the prior year [28] Business Line Data and Key Metrics Changes - The company opened 11 new restaurant units to date, with three openings during the second quarter [11][13] - The performance of new restaurant openings, particularly in Bakersfield, California, has been strong, indicating potential for future growth [14] Market Data and Key Metrics Changes - Comparable sales in the West Coast market were negative 1.5%, while the Southwest market saw a decline of 8% [25] - The company estimates that weather-related impacts in Q2 represented a comp headwind of 400 to 500 basis points [12] Company Strategy and Development Direction - The company aims to return to a 50-50 split of new and existing markets by fiscal 2027, which is expected to serve as a comp tailwind [16] - The company is focusing on building a strong pipeline of IP collaborations, with seven to eight planned for fiscal 2026 [16][90] - The rollout of a new reservation system is a top priority, with positive initial feedback from testing in three restaurants [20][106] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a 20% restaurant-level operating profit margin for the full year, despite uncertainties related to tariffs [39][41] - The company has not updated its guidance due to increased uncertainty in consumer behavior following recent tariff announcements [52][61] - Management remains optimistic about achieving positive comps for the full year, barring any significant changes in consumer behavior [63] Other Important Information - The company had $85.2 million in cash and cash equivalents at the end of the fiscal second quarter, with no debt [29] - General and administrative expenses as a percentage of sales increased to 16.9% due to a $2.1 million litigation settlement expense [27] Q&A Session Summary Question: Performance through the quarter and weather impact - Management noted that performance improved in March after the adverse weather conditions in January and February [36][41] Question: Margin expectations for 2025 - Management remains confident in achieving a 20% margin for the full year, although uncertainties exist due to tariffs [39][41] Question: Consumer spending concerns - Management indicated that they do not interpret the recent performance as a slowdown in consumer spending, especially given the strong performance in March [51] Question: Tariff implications on supply chain - Management is still assessing the impact of tariffs on costs and is in discussions with suppliers to mitigate potential increases [58][60] Question: New unit openings and revenue contribution - Management confirmed plans to open one more store in Q3 and two stores in Q4, with ongoing construction challenges [78][80] Question: IP partnerships and future collaborations - Management confirmed that they expect to run IP partnerships for the balance of the fiscal year, with a focus on impactful collaborations [123][126] Question: Reservation system rollout - Management expects to roll out the reservation system system-wide by the end of the fiscal year, with positive initial responses from customers [106][132]

Core Viewpoint - Kura Sushi reported a quarterly loss of $0.14 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, marking a significant earnings surprise of -75% [1] Financial Performance - The company posted revenues of $64.89 million for the quarter ended February 2025, missing the Zacks Consensus Estimate by 1.96%, but showing an increase from $57.29 million year-over-year [2] - Over the last four quarters, Kura Sushi has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Kura Sushi shares have declined approximately 52.2% since the beginning of the year, compared to a decline of 13.9% for the S&P 500 [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for it to outperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $72.97 million, and for the current fiscal year, it is $0.23 on revenues of $282.47 million [7] - The outlook for the Retail - Restaurants industry, to which Kura Sushi belongs, is currently in the bottom 28% of Zacks industries, which may impact stock performance [8]

Financial Performance - Sales for the three months ended February 28, 2025, were $64.9 million, an increase of $7.6 million or 13.3% compared to $57.3 million for the same period in 2024[73]. - Net loss for the three months ended February 28, 2025, was $3.8 million, a significant increase of 278.9% compared to a net loss of $1.0 million for the same period in 2024[71]. - Sales increased to $129.4 million for the six months ended February 28, 2025, up by $20.6 million or 18.9% compared to the same period in 2024, driven by fourteen new restaurant openings and menu price increases[83]. - Adjusted EBITDA for the six months ended February 28, 2025 was $6.246 million, compared to $4.617 million for the same period in 2024, with an adjusted EBITDA margin of 4.8%[98]. Comparable Restaurant Sales - Comparable restaurant sales decreased by 5.3% for the three months ended February 28, 2025, primarily due to a reduction in traffic[73]. - Comparable restaurant sales decreased by 1.6% for the six months ended February 28, 2025, primarily due to reduced traffic[83]. - Comparable restaurant sales performance decreased by 5.3% for the three months ended February 28, 2025, compared to an increase of 3.0% for the same period in 2024[108]. Costs and Expenses - Food and beverage costs increased to $18.6 million for the three months ended February 28, 2025, representing a 10.0% increase compared to $16.9 million for the same period in 2024[74]. - Labor and related costs rose to $22.6 million for the three months ended February 28, 2025, an increase of 19.4% from $18.9 million in the same period in 2024[75]. - Occupancy and related expenses increased by 29.0% to $5.1 million for the three months ended February 28, 2025, compared to $4.0 million for the same period in 2024[76]. - Total restaurant operating costs for the three months ended February 28, 2025, were $58.4 million, an increase of 15.2% from $50.7 million in the same period in 2024[71]. - General and administrative expenses increased by 34.5% to $11.0 million for the three months ended February 28, 2025, compared to $8.2 million for the same period in 2024[71]. - General and administrative expenses rose to $19.7 million for the six months ended February 28, 2025, an increase of $2.9 million or 17.5%, mainly due to a $2.1 million litigation settlement[89]. - Labor and related costs increased to $43.8 million for the six months ended February 28, 2025, representing a rise of $8.5 million or 24.0%, attributed to new restaurant openings[85]. - Food and beverage costs were $37.3 million for the six months ended February 28, 2025, an increase of $5.0 million or 15.5%, with costs as a percentage of sales decreasing to 28.8%[84]. - Depreciation and amortization expenses for the six months ended February 28, 2025 were $6.4 million, up by $1.2 million or 23.3%, reflecting costs associated with new restaurant openings[87]. - Other costs increased to $18.1 million for the six months ended February 28, 2025, an increase of $2.5 million or 15.8%, while as a percentage of sales, these costs decreased to 14.0%[88]. Restaurant Openings and Growth - The company expects to open a total of 14 new restaurants in fiscal year 2025, contributing to anticipated revenue growth[59]. - The company has opened a total of 75 restaurants as of February 28, 2025, up from 73 restaurants six months prior[59]. - The number of restaurant openings during the six months ended February 28, 2025, was 9, maintaining the same level as the previous year[109]. Cash Flow and Financing - Net cash provided by operating activities for the six months ended February 28, 2025, was $8.6 million, an increase from $6.2 million in the same period in 2024[114]. - Net cash used in investing activities increased to $39.4 million for the six months ended February 28, 2025, compared to $20.6 million for the same period in 2024, primarily due to higher capital expenditures[117]. - The company had $7.8 million in contractual obligations related to the construction of new restaurants as of February 28, 2025, expected to be paid within the next 12 months[121]. - The company completed a public offering of 800,328 shares of Class A common stock, raising net proceeds of $64.4 million for general corporate purposes[113]. - The company maintained $45.0 million of availability under its Revolving Credit Agreement as of February 28, 2025, with no borrowings during the reporting period[112]. Profitability Metrics - Restaurant-level operating profit for the three months ended February 28, 2025, was $11.2 million, compared to $11.2 million for the same period in 2024, indicating a stable performance despite overall operating loss[105]. - Restaurant-level operating profit margin for the three months ended February 28, 2025, was 17.3%, down from 19.6% in the same period in 2024[105]. - The operating loss margin for the three months ended February 28, 2025, was (7.1)%, compared to (2.9)% for the same period in 2024[105]. - The company expects Restaurant-level Operating Profit to increase in proportion to the number of new restaurants opened and comparable restaurant sales growth[101].

Financial Performance - Total sales for the fiscal second quarter of 2025 were $64.9 million, an increase from $57.3 million in the same quarter of 2024[5] - The net loss for the three months ended February 28, 2025, was $3.781 million, compared to a net loss of $0.998 million for the same period in 2024, indicating a significant increase in losses[27] - Net loss for the quarter was $3.8 million, or $(0.31) per diluted share, compared to a net loss of $1.0 million, or $(0.09) per diluted share, in the second quarter of 2024[10] - Adjusted net loss was $1.7 million, or $(0.14) per diluted share, compared to an adjusted net loss of $1.0 million, or $(0.09) per diluted share, in the second quarter of 2024[11] - Adjusted EBITDA for the three months ended February 28, 2025, was $2.674 million, slightly down from $2.850 million in the same period last year, resulting in an adjusted EBITDA margin of 4.1%[29] Sales and Revenue Trends - Comparable restaurant sales decreased by 5.3% in the second quarter of 2025 compared to the second quarter of 2024, primarily due to reduced traffic[5] - Comparable restaurant sales performance declined by 5.3% for the three months ended February 28, 2025, compared to an increase of 3.0% in the same period of 2024[29] - Total sales for the three months ended February 28, 2025, increased to $64.894 million, up from $57.291 million for the same period in 2024, representing a growth of 13.8%[27] Operating Costs and Expenses - The operating loss was $4.6 million, compared to an operating loss of $1.7 million in the second quarter of 2024[8] - Restaurant operating costs for the three months ended February 28, 2025, totaled $58.388 million, compared to $50.706 million in the prior year, reflecting an increase of 15.4%[27] - General and administrative expenses increased to $11.0 million, or 16.9% of sales, primarily due to a $2.1 million litigation settlement[9] - The operating loss margin for the three months ended February 28, 2025, was 7.1%, compared to 2.9% in the same period of 2024, indicating a worsening of operational efficiency[29] Growth and Expansion - The company opened three new restaurants during the fiscal second quarter of 2025, with a total of 11 units opened to date and six more under construction[4][12] - For the full fiscal year 2025, the company projects total sales between $275 million and $279 million and plans to open 14 new restaurants[16] - The number of restaurants at the end of the period increased to 73, up from 59 in the previous year, marking a growth of 23.7%[29] Assets and Equity - Total assets as of February 28, 2025, were $410.372 million, up from $328.522 million as of August 31, 2024, reflecting a growth of 24.9%[29] - Total stockholders' equity increased to $225.045 million as of February 28, 2025, compared to $162.538 million as of August 31, 2024, representing a growth of 38.5%[29] Strategic Focus - The company is focusing on new market opportunities and has begun testing several systems projects that have been in development[4]

IRVINE, Calif., April 08, 2025 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”) (NASDAQ: KRUS), a technology-enabled Japanese restaurant concept, today announced financial results for the fiscal second quarter ended February 28, 2025. Fiscal Second Quarter 2025 Highlights Total sales were $64.9 million, compared to $57.3 million in the second quarter of 2024;Comparable restaurant sales decreased 5.3% for the second quarter of 2025 as compared to the second quarter of 2024;Operating l ...

Core Insights - Kura Sushi USA, Inc. is set to release its second-quarter financial results on April 8, with analysts expecting a quarterly loss of 13 cents per share, compared to a loss of 9 cents per share a year ago [1] - The company projects quarterly revenue of $64.91 million, an increase from $57.29 million a year earlier [1] - Kura Sushi issued FY25 sales guidance below estimates on January 7 [1] Stock Performance - Kura Sushi shares fell 8% to close at $43.61 on Friday [2] Analyst Ratings - TD Securities analyst Andrew Charles reiterated a Hold rating with a price target of $72 [4] - Barclays analyst Jeffrey Bernstein maintained an Equal-Weight rating and reduced the price target from $102 to $75 [4] - Citigroup analyst Jon Tower maintained a Neutral rating and cut the price target from $116 to $71 [4] - Craig-Hallum analyst Jeremy Hamblin maintained a Buy rating and raised the price target from $85 to $120 [4] - Piper Sandler analyst Brian Mullan maintained a Neutral rating and increased the price target from $63 to $98 [4]

Company Overview - Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept with 74 locations across 20 states and Washington DC [3] - The company offers a distinctive dining experience based on authentic Japanese cuisine and a revolving sushi service model [3] - Established in 2008 as a subsidiary of Kura Sushi, Inc., which has over 650 restaurants internationally and 45 years of brand history [3] Upcoming Financial Results - Kura Sushi will host a conference call to discuss fiscal second quarter 2025 financial results on April 8, 2025, at 5:00 p.m. ET [1] - A press release with the financial results will be issued on the same day after market close [1] - The conference call will be led by President and CEO Hajime "Jimmy" Uba, CFO Jeff Uttz, and SVP Investor Relations & System Development Benjamin Porten [1]

Company Overview - Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept with 74 locations across 20 states and Washington DC [3] - The company offers a distinctive dining experience based on authentic Japanese cuisine and a revolving sushi service model [3] - Established in 2008 as a subsidiary of Kura Sushi, Inc., which has over 650 restaurants internationally and 45 years of brand history [3] Upcoming Financial Results - Kura Sushi will host a conference call to discuss fiscal second quarter 2025 financial results on April 8, 2025, at 5:00 p.m. ET [1] - A press release with the financial results will be issued on the same day after market close [1] - The conference call will be led by President and CEO Hajime "Jimmy" Uba, CFO Jeff Uttz, and SVP Investor Relations & System Development Benjamin Porten [1]