Kura Sushi Q1 2023 Earnings Report
Key Takeaways
Kura Sushi USA, Inc. announced financial results for the fiscal first quarter ended November 30, 2022. Total sales were $39.3 million, an increase from $29.8 million in the first quarter of 2022. Comparable restaurant sales increased 6.9%. The company reported an operating loss of $2.2 million and a net loss of $2.1 million, or $(0.21) per diluted share.
Total sales were $39.3 million, compared to $29.8 million in the first quarter of 2022.
Comparable restaurant sales increased 6.9% for the first quarter of 2023 as compared to the first quarter of 2022.
Operating loss was $2.2 million, compared to operating loss of $1.3 million in the first quarter of 2022.
Restaurant-level operating profit was $7.2 million, or 18.2% of sales.
Kura Sushi
Kura Sushi
Forward Guidance
For the full fiscal year of 2023, the Company reaffirms the following previously provided annual guidance: Total sales between $183 million and $188 million; General and administrative expenses as a percentage of sales of approximately 16%; and 9 to 11 new restaurants, with average net capital expenditures per unit of approximately $2.5 million.
Positive Outlook
- Total sales between $183 million and $188 million
- General and administrative expenses as a percentage of sales of approximately 16%
- 9 to 11 new restaurants
- Average net capital expenditures per unit of approximately $2.5 million
- Continue rapid unit expansion
Challenges Ahead
- Impact of a potential resurgence of the COVID-19 pandemic
- Outbreak of other highly contagious viruses
- Changes in food and supply costs, including the impact of inflation and tariffs
- Minimum wage increases and mandated employee benefits that could cause a significant increase in labor costs
- Volatility in the price of the Company’s common stock