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]

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]

Core Insights - Kura Sushi USA, Inc. reported financial results for the fiscal second quarter ended February 28, 2025, highlighting a total sales increase but a decline in comparable restaurant sales [1][5][10] Financial Performance - Total sales reached $64.9 million, up from $57.3 million in the same quarter of 2024, representing a year-over-year increase of approximately 28% [5][10] - Comparable restaurant sales decreased by 5.3% compared to the second quarter of 2024, primarily due to reduced customer traffic [5][10] - The operating loss was $4.6 million, worsening from a loss of $1.7 million in the second quarter of 2024 [9][10] - Net loss amounted to $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 prior year [11][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][10] - Restaurant-level operating profit was $11.2 million, representing 17.3% of sales, consistent with the previous year [11][10] - Adjusted EBITDA was $2.7 million, down from $2.9 million in the second quarter of 2024 [12][10] Cost Structure - Food and beverage costs as a percentage of sales decreased to 28.7% from 29.6% in the second quarter of 2024, attributed to menu price increases and supply chain initiatives [6][10] - Labor and related costs increased to 34.8% of sales from 33.0% in the same quarter of 2024, primarily due to rising wage rates [6][10] - Occupancy and related expenses rose to $5.1 million from $4.0 million, driven by the opening of fourteen new restaurants since the second quarter of 2024 [7][10] - General and administrative expenses increased to $11.0 million from $8.2 million, largely due to a $2.1 million litigation settlement [8][10] Restaurant Development - During the fiscal second quarter of 2025, the company opened three new restaurants in Berkeley, California; Fort Worth, Texas; and Paramus, New Jersey [13] - Following the quarter, two additional restaurants were opened in Scottsdale, Arizona, and Lynnwood, Washington [13] Fiscal Year 2025 Outlook - The company reiterated its annual guidance, projecting total sales between $275 million and $279 million and plans to open 14 new restaurants, maintaining an annual unit growth rate above 20% [19]

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]

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]

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 ...