In This Article:
-
Total Sales: $64.5 million for the fiscal first quarter.
-
Comparable Sales Growth: 1.8% increase.
-
Adjusted EBITDA Margin: 5.5%, a 210-basis-point improvement year over year.
-
Cost of Goods Sold: 29% of sales, improved by 80 basis points year over year.
-
Labor Costs: 32.9% of sales, up from 31.9% in the prior year quarter.
-
Restaurant Operating Profit Margin: 18.2%, compared to 19.5% in the prior year quarter.
-
Net Loss: $1 million or $0.08 per share, compared to a loss of $2 million or $0.18 per share in the prior year quarter.
-
Adjusted EBITDA: $3.6 million, compared to $1.8 million in the prior year quarter.
-
Cash and Cash Equivalents: $107 million with no debt.
-
New Unit Openings: Six new units opened in the fiscal first quarter.
Release Date: January 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Kura Sushi USA Inc (NASDAQ:KRUS) reported strong Q1 results with positive comparable sales growth of 1.8% and six new unit openings.
-
Adjusted EBITDA margin improved by 210 basis points year over year to 5.5%, demonstrating effective cost control.
-
The company successfully opened new locations in smaller markets like Bakersfield, California, which exceeded expectations and supports future growth in similar markets.
-
Technological initiatives, including a new reservation and self-seating system, are on track and expected to enhance guest experience and operational efficiency.
-
Kura Sushi USA Inc (NASDAQ:KRUS) has a strong cash position with $107 million in cash and no debt, providing financial flexibility for future growth.
Negative Points
-
Labor costs increased to 32.9% of sales, up from 31.9% in the prior year, driven by wage inflation and new restaurant openings in high labor cost markets.
-
Restaurant operating profit margin decreased to 18.2% from 19.5% in the prior year, primarily due to wage inflation.
-
Traffic was down 2.3%, which offset some of the positive sales mix improvements.
-
The company faces a challenging comparison in Q2 due to the absence of IP collaborations, which could impact comparable sales.
-
Despite positive Q1 results, the company provided conservative revenue guidance for fiscal year 2025, reflecting caution due to past guidance adjustments.
Q & A Highlights
Q: Can you provide insights into the trends driving mid-single-digit improvement in comps, particularly in your key markets? A: (Hajime Uba, CEO) The improvement was largely driven by successful IP collaborations with One Piece and Pikmin. While pricing remained flat, we saw significant improvement in mix due to food-focused marketing efforts, such as the Perfect Pair campaign, which combined udon bowls with other menu items, enhancing mix without reducing per-person plate consumption.