Core Insights - The article discusses the expertise of a specialized equity analyst in the restaurant sector, focusing on various dining segments in the U.S. market [1] Company Analysis - The company, Goulart's Restaurant Stocks, is dedicated to analyzing restaurant stocks across multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] Industry Engagement - The analyst actively participates in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous contributions include columns on monetary policy, financial education, and financial modeling aimed at making these topics accessible to a broader audience [1]

Industry Overview - The U.S. restaurant industry faced challenges in 2024 due to high wages, food cost inflation, and traffic issues, but showed recovery in early 2025 following a significant interest rate cut by the Fed in the second half of 2024 [1] - The Zacks-defined Retail – Restaurant Industry is currently in the top 23% of the Zacks Industry Rank, indicating an expectation for the restaurant industry to outperform the market in the next three to six months, with a year-to-date increase of 7.8% compared to the S&P 500's 4.1% rise [2] Near-Term Catalysts - The Fed's 1% reduction in the benchmark lending rate in 2024 is expected to lower borrowing costs, benefiting both restaurant owners and consumers, which typically boosts consumer spending [4] - Sales at U.S. restaurants continue to rise despite inflation, with a 0.9% month-over-month and 5.4% year-over-year increase reported in January [5] - Restaurant operators are focusing on digital innovation, sales-building initiatives, and cost-saving efforts, partnering with delivery channels and digital platforms to drive incremental sales [6][7] Company Recommendations - Five U.S. restaurant stocks are recommended for their favorable Zacks Rank and strong near-term price upside potential: Texas Roadhouse Inc. (TXRH), Shake Shack Inc. (SHAK), Kura Sushi USA Inc. (KRUS), Sweetgreen Inc. (SG), and Potbelly Corp. (PBPB) [3][9] Company-Specific Insights Texas Roadhouse Inc. (TXRH) - Expected revenue and earnings growth rates for TXRH are 9.9% and 13.4%, respectively, for the current year, with a 0.6% improvement in earnings estimates over the last 30 days [12] - The short-term average price target indicates a potential increase of 16.6% from the last closing price of $171.70, with a maximum upside of 51.4% [13] Shake Shack Inc. (SHAK) - SHAK has expected revenue and earnings growth rates of 16.8% and 39.1%, respectively, for the current year, with a 1.6% improvement in earnings estimates in the last week [16] - The short-term average price target suggests a 23.3% increase from the last closing price of $108.40, with a maximum upside of 47.6% [17] Kura Sushi USA Inc. (KRUS) - KRUS is projected to have revenue and earnings growth rates of 18.3% and over 100%, respectively, for the current year, with earnings estimates improving by over 100% in the last 60 days [21] - The short-term average price target indicates a 37.5% increase from the last closing price of $77.44, with a maximum upside of 55% [22] Sweetgreen Inc. (SG) - SG is expected to achieve revenue and earnings growth rates of 18.3% and over 100%, respectively, for the current year, with earnings estimates improving by over 100% in the last 60 days [24] - The short-term average price target suggests a 52.1% increase from the last closing price of $27.19, with a maximum upside of 80.2% [25] Potbelly Corp. (PBPB) - PBPB has expected revenue and earnings growth rates of 4.3% and 12.5%, respectively, for the current year, with an 8% improvement in earnings estimates over the last 60 days [27] - The short-term average price target indicates a 20.7% increase from the last closing price of $12.39, with a maximum upside of 29.1% [28]

Perhaps in no other industry has the pinch of inflation been more keenly felt than in the restaurant space, where restaurateurs are grappling with skyrocketing labor costs and rising food prices, and diners are being shell-shocked by menu prices that seem muchWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He h ...

Kura Sushi (KRUS) has been on a downward spiral lately with significant selling pressure. After declining 13.6% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock i ...

You know the story. When Mr. Market expects a lot from you, you better not disappoint him. He might get upset even if the outcome isn’t that bad. This could be the Q1I'm an Equity Analyst and Accountant specializing in restaurant stocks, with a strong 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 span ...

Kura Sushi USA TodayKRUSKura Sushi USA$90.09 -12.09 (-11.83%) 52-Week Range$48.66▼$122.81Price Target$89.75Add to WatchlistKura Sushi’s NASDAQ: KRUS stock price retreated following the FQ1 2025 release, dipping into a hot buying opportunity for small-cap and restaurant investors. The move is due to the guidance, which fell short and expects growth to slow, but many factors, including the pace of Q1 and store count growth, suggest otherwise.  The likely scenario is that this company will continue to outperf ...

Kura Sushi USA, Inc. (KRUS) reported first-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The metrics increased on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.During the quarter, management highlighted the return of comparable sales to positive territory and record-high Adjusted EBITDA margins. Additionally, the solid performance of new store openings added to the positives. The company remains focused on cost ...

Financial Data and Key Metrics - Total sales for Q1 2025 were $64.5 million, representing a 1.8% comparable sales growth driven by a 4.1% mix offset by 3.3% negative traffic [9][22] - Adjusted EBITDA margin improved by 210 basis points year-over-year to 5.5% [8] - Cost of goods sold as a percentage of sales improved by 80 basis points year-over-year to 29% due to pricing and supply chain initiatives [10][22] - Labor costs as a percentage of sales increased to 32.9% compared to 31.9% in the prior year quarter, driven by wage inflation and new restaurant openings in high labor cost markets [10][22] - Net operating profit margin was 18.3% compared to 19.5% in the prior year quarter, mainly due to wage inflation [10] - Operating loss improved to $1.5 million compared to $2.8 million in the prior year quarter, driven by G&A leverage [24] Business Line Data and Key Metrics - Six new units were opened in Q1 2025, with six more under construction [11] - The company expects to open 14 units in fiscal 2025, maintaining an annual unit growth rate above 20% [26] - The new reservation and self-seating system is progressing as scheduled, with the first test expected in February [15][16] - The company is rolling out an updated Mister Fresh 3.0 system, which is expected to improve guest experience and reduce labor costs [16][148] Market Data and Key Metrics - Comparable sales growth was positive 1.8%, with regional comps of positive 7.8% and negative 2.3% in the Southwest market [22] - The company is focusing on smaller DMAs (Designated Market Areas) for new openings, with Bakersfield, California, being a critical test market [13][14] - The company aims to return to a 50/50 pipeline split between new and existing markets to manage comp headwinds [14] Company Strategy and Industry Competition - The company is focusing on cost control and profitability, especially in Q2, which lacks IP collaborations [39][41] - The company is shifting its marketing strategy to focus more on food-focused campaigns rather than IP collaborations [17][90] - The company is leveraging technology to improve operational efficiency, including the rollout of a new reservation system and updated ordering patterns [15][16] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the company's ability to manage comp headwinds and maintain profitability despite wage inflation and other cost pressures [10][39] - The company expects labor costs as a percentage of sales to improve in the back half of the year due to operational streamlining and seasonality [56][59] - Management is confident in the long-term potential of smaller DMAs and the ability to manage comp headwinds through strategic market expansion [14] Other Important Information - The company has $107.7 million in cash and cash equivalents with no debt, following a follow-on offering in November [25] - The company expects total sales for fiscal 2025 to be between $275 million and $279 million [26] - The company is focusing on improving guest experience through technological initiatives, including the rollout of a new reservation system and updated Mister Fresh 3.0 [15][16] Q&A Summary Question: Trends in comps and mix improvement - The improvement in Q1 comps was driven by successful IP collaborations with One Piece and Pikmin, as well as food-focused marketing efforts like the "Perfect Pair" campaign [33][34] - The company expects Q2 to be more challenging due to the absence of IP collaborations, but remains focused on cost control and profitability [39][41] Question: Impact of calendar shift on holiday sales - The late Thanksgiving in November has led the company to treat December and January as a combined month for sales analysis [45] Question: Outlook for comps and profitability in fiscal 2025 - The company expects Q2 comps to potentially revert to modest negative due to the absence of IP collaborations, but anticipates positive comps in the back half of the year [51][52] Question: Labor and food inflation trends - Labor costs as a percentage of sales are expected to improve in the back half of the year due to operational streamlining and seasonality [56][59] - Food inflation was flat in Q1, and the company expects COGS as a percentage of sales to remain stable or improve slightly for the remainder of the year [61][63] Question: Impact of new reservation and self-seating system - The new reservation system is expected to reduce labor costs by eliminating the need for a dedicated host position and improving guest satisfaction [16][171] - The system is expected to drive comp growth by reducing waitlist abandonment and increasing traffic during shoulder periods [160][161] Question: Development strategy in smaller DMAs - The company is focusing on cash-on-cash returns rather than target AUVs when selecting sites in smaller DMAs [101] Question: Sustainability of mix improvement - The company believes that the days of negative high single-digit mix are behind them, thanks to food-focused marketing efforts and menu price increases on side items [108][112] Question: Delivery business and its impact - Delivery is considered incremental to sales, but the company prioritizes in-restaurant guests due to high traffic volumes [114][115] Question: G&A leverage and preopening expenses - G&A leverage improved in Q1, and the company expects further improvements if sales trends continue to pick up [121][122] - Preopening expenses were lower due to fewer units under construction and a shift in the opening team structure [124][125] Question: Promotions to drive mix and traffic - The company is focusing on promotions like the "Perfect Pair" campaign to drive mix and check growth [130][135] Question: New Mister Fresh Dome and its impact - The new Mister Fresh Dome is expected to improve guest experience and reduce server time spent explaining the system [148][151] Question: Reservation system rollout timeline - The company aims for a full system-wide rollout of the reservation system by the end of fiscal 2025 [167][168] Question: Labor efficiency improvements - The company has reduced staffing needs by about two people per shift in both front and back of house compared to pre-pandemic levels [176] Question: IP partnerships in the back half of fiscal 2025 - The company has two strong IP partnerships lined up for the back half of the year [179]

Kura Sushi (KRUS) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.24. This compares to loss of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 66.67%. A quarter ago, it was expected that this company would post earnings of $0.02 per share when it actually produced earnings of $0.09, delivering a surprise of 350%.Over the last four quarters, the company has surpassed c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-39012 KURA SUSHI USA, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 26-3808434 (S ...