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Kura Sushi (KRUS) Q3 Earnings Beat Estimates, Revenues Lag
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Kura Sushi USA, Inc. (KRUS - Free Report) reported third-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Following the results, the company’s shares moved down 4.2% in the after-hours trading session on Jul 9.
Q3 Earnings & Revenues
The company reported break-even earnings against the Zacks Consensus Estimate of a loss of 6 cents per share. In the year-ago quarter, the company had incurred an adjusted earnings per share of 16 cents.
Revenues of $63.1 million lagged the consensus mark of $64 million. In the prior-year quarter, the company reported revenues of $49.2 million. The year-over-year upside can be attributed to new store developments.
Kura Sushi USA, Inc. Price, Consensus and EPS Surprise
In the fiscal third quarter, comparable restaurant sales increased 0.6% year over year. In the year-ago quarter, the company reported comparable restaurant sales growth of 10.3% year over year.
Operating Highlights
In the fiscal third quarter, restaurant-level operating profit amounted to $12.6 million compared with $11.6 million in the prior-year quarter. Restaurant-level operating profit margin in the quarter came in at 20% compared with 23.5% in the year-ago period.
General and administrative expenses in the fiscal third quarter totaled $8.9 million compared with $7 million in the prior-year period. The increase was primarily due to professional fees, litigation accrual, compensation-related costs as well as travel costs.
Food and beverage costs (as a percentage of sales) came in at 29.2% compared with 30% in the prior-year quarter. This was due to a rise in menu prices and supply-chain initiatives.
Adjusted EBITDA in the fiscal third quarter amounted to $4.5 million compared with $5.1 million in the prior-year quarter.
Balance Sheet
As of May 31, 2024, cash and cash equivalents totaled $59.4 million compared with $69.7 million as of Aug 31, 2023.
Total stockholders’ equity as of May 31, 2024, was $166.4 million compared with $164.6 million as of Aug 31, 2023.
Store Developments
The company opened four new restaurants in Orlando, FL; Atlanta, GA; Scarsdale, NY; and Roseville, CA. KRUS expects to open 14 new restaurants in fiscal 2024.
Fiscal 2024 Outlook
For fiscal 2024, the company anticipates sales in the range of $235-$237 million compared with the previous projection of $243-$246 million. It expects general and administrative expenses (as a percentage of sales) between 14% and 14.5%.
Kura Sushi currently carries a Zacks Rank #5 (Strong Sell).
Key Picks
Some better-ranked stocks in the Zacks Retail-Wholesale sector are:
Brinker International, Inc. (EAT - Free Report) currently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 213.4%, on average. EAT’s shares have surged 74% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EAT’s 2024 sales and earnings per share (EPS) indicates 5.2% and 43.1% growth, respectively, from the year-earlier actuals.
Wingstop Inc. (WING - Free Report) currently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter negative earnings surprise of 21.4%, on average. The stock has surged 109% in the past year.
The Zacks Consensus Estimate for WING’s 2024 sales and EPS suggests a rise of 27.9% and 37.9%, respectively, from the year-ago levels.
El Pollo Loco Holdings, Inc. (LOCO - Free Report) currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 19.4%, on average. LOCO’s shares have risen 9.6% in the past year.
The Zacks Consensus Estimate for LOCO’s 2025 sales and EPS indicates 3.8% and 9.9% growth, respectively, from the prior-year figures.
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Kura Sushi (KRUS) Q3 Earnings Beat Estimates, Revenues Lag
Kura Sushi USA, Inc. (KRUS - Free Report) reported third-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Following the results, the company’s shares moved down 4.2% in the after-hours trading session on Jul 9.
Q3 Earnings & Revenues
The company reported break-even earnings against the Zacks Consensus Estimate of a loss of 6 cents per share. In the year-ago quarter, the company had incurred an adjusted earnings per share of 16 cents.
Revenues of $63.1 million lagged the consensus mark of $64 million. In the prior-year quarter, the company reported revenues of $49.2 million. The year-over-year upside can be attributed to new store developments.
Kura Sushi USA, Inc. Price, Consensus and EPS Surprise
Kura Sushi USA, Inc. price-consensus-eps-surprise-chart | Kura Sushi USA, Inc. Quote
Comps Details
In the fiscal third quarter, comparable restaurant sales increased 0.6% year over year. In the year-ago quarter, the company reported comparable restaurant sales growth of 10.3% year over year.
Operating Highlights
In the fiscal third quarter, restaurant-level operating profit amounted to $12.6 million compared with $11.6 million in the prior-year quarter. Restaurant-level operating profit margin in the quarter came in at 20% compared with 23.5% in the year-ago period.
General and administrative expenses in the fiscal third quarter totaled $8.9 million compared with $7 million in the prior-year period. The increase was primarily due to professional fees, litigation accrual, compensation-related costs as well as travel costs.
Food and beverage costs (as a percentage of sales) came in at 29.2% compared with 30% in the prior-year quarter. This was due to a rise in menu prices and supply-chain initiatives.
Adjusted EBITDA in the fiscal third quarter amounted to $4.5 million compared with $5.1 million in the prior-year quarter.
Balance Sheet
As of May 31, 2024, cash and cash equivalents totaled $59.4 million compared with $69.7 million as of Aug 31, 2023.
Total stockholders’ equity as of May 31, 2024, was $166.4 million compared with $164.6 million as of Aug 31, 2023.
Store Developments
The company opened four new restaurants in Orlando, FL; Atlanta, GA; Scarsdale, NY; and Roseville, CA. KRUS expects to open 14 new restaurants in fiscal 2024.
Fiscal 2024 Outlook
For fiscal 2024, the company anticipates sales in the range of $235-$237 million compared with the previous projection of $243-$246 million. It expects general and administrative expenses (as a percentage of sales) between 14% and 14.5%.
Kura Sushi currently carries a Zacks Rank #5 (Strong Sell).
Key Picks
Some better-ranked stocks in the Zacks Retail-Wholesale sector are:
Brinker International, Inc. (EAT - Free Report) currently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 213.4%, on average. EAT’s shares have surged 74% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EAT’s 2024 sales and earnings per share (EPS) indicates 5.2% and 43.1% growth, respectively, from the year-earlier actuals.
Wingstop Inc. (WING - Free Report) currently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter negative earnings surprise of 21.4%, on average. The stock has surged 109% in the past year.
The Zacks Consensus Estimate for WING’s 2024 sales and EPS suggests a rise of 27.9% and 37.9%, respectively, from the year-ago levels.
El Pollo Loco Holdings, Inc. (LOCO - Free Report) currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 19.4%, on average. LOCO’s shares have risen 9.6% in the past year.
The Zacks Consensus Estimate for LOCO’s 2025 sales and EPS indicates 3.8% and 9.9% growth, respectively, from the prior-year figures.