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Nov 30, 2023
Kura Sushi Q1 2024 Earnings Report
Kura Sushi's financial performance in Q1 2024 reflected a strong start to the fiscal year, marked by increased total sales and comparable restaurant sales, despite an operating loss.
Key Takeaways
Kura Sushi USA reported a strong start to fiscal year 2024, with a 31% increase in total sales to $51.5 million compared to $39.3 million in the first quarter of 2023. Comparable restaurant sales increased by 3.8%. The company opened four new restaurants during the quarter. Despite the growth, the company reported an operating loss of $2.8 million and a net loss of $2.0 million, or $(0.18) per diluted share.
Total sales increased to $51.5 million, a 31% increase compared to the first quarter of 2023.
Comparable restaurant sales increased by 3.8% compared to the same period last year.
Restaurant-level operating profit was $10.1 million, representing 19.5% of sales.
Four new restaurants were opened during the fiscal first quarter of 2024.
Kura Sushi
Kura Sushi
Forward Guidance
For the full fiscal year 2024, the Company reiterates and updates the following annual guidance:
Positive Outlook
- Total sales between $239 million and $244 million
- General and administrative expenses as a percentage of sales to be approximately 14.5%
- 12 to 14 new restaurants
- Average net capital expenditures per unit of approximately $2.5 million
- Maintaining excellent operations
Challenges Ahead
- Rising interest rates
- Possibility of a recession
- Instability in financial markets
- 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