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Nov 30, 2020
Kura Sushi Q1 2021 Earnings Report
Kura Sushi's financial performance declined due to COVID-19 restrictions, but initiatives improved sales sequentially.
Key Takeaways
Kura Sushi USA reported a decrease in total sales to $9.4 million compared to $17.4 million in the first quarter of 2020. The company experienced an operating loss of $6.3 million, and a net loss of $6.4 million, or ($0.76) per diluted share. Despite these losses, Kura Sushi opened three new restaurants and saw a 70% sequential increase in total sales from the previous quarter.
Total sales decreased to $9.4 million from $17.4 million in the first quarter of 2020.
Operating loss was $6.3 million, compared to an operating loss of $1.4 million in the first quarter of 2020.
Net loss was $6.4 million, or ($0.76) per diluted share, compared to a net loss of $1.2 million, or ($0.15) per diluted share, in the first quarter of 2020.
Three new restaurants were opened during the first quarter of 2021, located in Fort Lee, NJ; Koreatown (Los Angeles), CA; and Washington DC.
Kura Sushi
Kura Sushi
Forward Guidance
Kura Sushi faces tougher state and local operational restrictions, particularly in California, which has led to a decline in comparable restaurant sales in December. The company remains confident about its post-pandemic recovery.
Positive Outlook
- Optimistic about business and its growth potential.
- Enhanced off-premise offerings through partnership with Square.
- Financial security provided through relationship with Kura Sushi Japan.
- Able to operate 27 out of 28 restaurants in Q1 2021.
- Improved total sales by 70% sequentially from fiscal fourth quarter of 2020.
Challenges Ahead
- Tougher state and local operational restrictions.
- California enacted a total ban on both indoor and outdoor dining effective December 6, 2020.
- December comparable restaurant sales decline of approximately 64%.
- Sequential decline in sales of approximately 10% from November.
- Operating in an uncertain environment.