Kura Sushi USA(KRUS) - 2025 Q2 - Quarterly Report

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$6.246 million, compared to $4.617 million for the same period in 2024, with an adjusted EBITDA margin of 4.8$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$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$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$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].