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Nov 30, 2021
Kura Sushi Q1 2022 Earnings Report
Kura Sushi's financial performance demonstrated significant growth compared to the previous year, driven by increased sales and improved operating efficiency.
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