Kura Sushi USA Announces Fiscal Second Quarter 2025 Financial Results

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]