Kura Sushi Q1 2022 Earnings Report
Key Takeaways
Kura Sushi USA reported a strong first quarter for fiscal year 2022, with total sales increasing to $29.8 million compared to $9.4 million in the same quarter of the previous year. Comparable restaurant sales also saw a substantial increase of 154%. The company's operating loss decreased significantly, and restaurant-level operating profit reached $5.8 million.
Total sales increased to $29.8 million, a significant rise from $9.4 million in the first quarter of 2021.
Comparable restaurant sales increased by 154% compared to the first quarter of 2021.
Operating loss improved to $1.3 million, compared to a $6.3 million loss in the same period last year.
Restaurant-level operating profit was $5.8 million, a substantial turnaround from the previous year's operating loss.
Kura Sushi
Kura Sushi
Forward Guidance
Kura Sushi reaffirms its full fiscal year 2022 guidance, expecting total sales between $130 million and $140 million, general and administrative expenses as a percentage of sales of approximately 17%, and the opening of 8 to 10 new restaurants with average net capital expenditures per unit of approximately $2.1 million.
Positive Outlook
- Total sales are expected to be between $130 million and $140 million.
- General and administrative expenses as a percentage of sales are projected to be approximately 17%.
- Company plans to open 8 to 10 new restaurants.
- Average net capital expenditures per new unit are estimated at approximately $2.1 million.
- Guidance based on recent results and performance to date in the second quarter of fiscal 2022.
Challenges Ahead
- Guidance assumes no further operating restrictions or material downturns from COVID-19.
- The restaurant industry remains highly vulnerable to COVID-related volatility.
- Potential changes in consumer preferences and the level of acceptance of our restaurant concept in new markets
- Minimum wage increases and mandated employee benefits that could cause a significant increase in our labor costs
- The failure of our automated equipment or information technology systems or the breach of our network security