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Kura Sushi Q1 Earnings & Revenues Surpass Estimates, Rise Y/Y

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Kura Sushi USA, Inc. (KRUS - Free Report) reported first-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The metrics increased on a year-over-year basis.

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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-control measures, strategic expansion and driving operational excellence to sustain its momentum and deliver growth in the coming periods.

Following the results, the company shares gained 4% during the after-hours trading session yesterday.

KRUS Fiscal Q1 Earnings & Revenues

In the quarter under review, the company reported an adjusted loss per share of 8 cents, narrower than the Zacks Consensus Estimate of a loss of 24 cents. In the year-ago quarter, the company reported an adjusted loss per share of 18 cents.

Kura Sushi USA, Inc. Price, Consensus and EPS Surprise

Kura Sushi USA, Inc. Price, Consensus and EPS Surprise

Kura Sushi USA, Inc. price-consensus-eps-surprise-chart | Kura Sushi USA, Inc. Quote

Quarterly revenues of $64.5 million beat the consensus mark of $62 million by 4%. In the prior-year quarter, the company reported revenues of $51.5 million.

KRUS’ Q1 Comps Rise YoY

During the fiscal first quarter, comparable restaurant sales increased 1.8% year over year. In the year-ago quarter, the company reported comparable restaurant sales growth of 3.8% year over year. The upside was backed by successful One Piece and Pikmin IP collaboration campaigns.

Operating Highlights

During the fiscal first quarter, restaurant-level operating profit amounted to $11.7 million compared with $10.1 million reported in the prior-year quarter. Restaurant-level operating profit margin during the quarter came in at 18.2% compared with 19.5% reported in the year-ago period.

General and administrative expenses in the fiscal first quarter came in at $8.7 million compared to $6.6 million in the prior-year period.

During the quarter, food and beverage costs (as a percentage of sales) came in at 29% compared with 29.8% in the prior-year quarter. The downside is primarily due to a rise in menu prices, partially offset by food cost inflation.

Adjusted EBITDA in the fiscal first quarter came in at $3.6 million compared with $1.8 million reported in the prior-year quarter.

Balance Sheet

As of Nov. 30, 2024, cash and cash equivalents totaled $107.7 million compared with $51 million as of Aug. 31, 2024.

Total stockholders’ equity at the end of the fiscal first quarter totaled $227.6 million compared with $163.7 million at the end of fourth-quarter fiscal 2024.

Store Developments

During the fiscal first quarter, the company opened six new restaurants in Beaverton, OR; Tacoma, WA; Rockville, MD; Cherry Hill, NJ; Bakersfield, CA; and Fishers, IN. The company expects to open 14 new restaurants in fiscal 2025.

Fiscal 2025 Outlook

For fiscal 2025, the company anticipates sales to be $275-$279 million. It expects general and administrative expenses (as a percentage of sales) to be approximately 13.5%.

KRUS’ Zacks Rank & Key Picks

Kura Sushi currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.

Shake Shack Inc. (SHAK - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). SHAK has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has gained 89.6% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.

The Zacks Consensus Estimate for SHAK’s 2025 sales and earnings per share (EPS) indicates a rise of 14.7% and 42%, respectively, from the year-ago period’s levels.

Chipotle Mexican Grill, Inc. (CMG - Free Report) presently carries a Zacks Rank #2 (Buy). CMG has a trailing four-quarter earnings surprise of 9.8%, on average. The stock has surged 29.7% in the past year.

The consensus estimate for CMG’s 2025 sales and EPS indicates growth of 12.8% and 17.9%, respectively, from the year-ago period’s levels.

Brinker International, Inc. (EAT - Free Report) presently carries a Zacks Rank #2. EAT has a trailing four-quarter earnings surprise of 12.1%, on average. The stock has surged 231.3% in the past year.

The consensus estimate for EAT’s fiscal 2025 sales and EPS indicates growth of 9.3% and 44.2%, respectively, from the year-ago period’s levels.


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