Kura Sushi Q3 2020 Earnings Report
Key Takeaways
Kura Sushi USA, Inc. announced its fiscal third quarter 2020 financial results, revealing a significant downturn in sales and profitability due to the COVID-19 pandemic. With temporary restaurant closures and reduced operations, the company faced a decrease in total sales, operating income, and net income compared to the same period in the previous year. Despite these challenges, Kura Sushi has reopened all 25 restaurants with enhanced safety measures and is focused on navigating the ongoing pandemic while pursuing long-term growth opportunities.
Total sales decreased by $14.1 million compared to Q3 2019, totaling $2.8 million.
Operating loss was $8.0 million, a stark contrast to the $0.8 million operating income in Q3 2019.
Net loss reached $9.2 million, or ($1.10) per diluted share, compared to a net income of $0.7 million, or $0.14 per diluted share, in Q3 2019.
Restaurant-level operating loss was $5.3 million, compared to a profit of $3.5 million in the same quarter of the previous year.
Kura Sushi
Kura Sushi
Forward Guidance
Kura Sushi is focused on safely reopening and operating its restaurants while prioritizing the health of its guests and team members. While the operating environment remains fluid, the company is confident in its ability to navigate the pandemic and pursue long-term growth opportunities.
Positive Outlook
- All 25 restaurants have been reopened with varying capacities.
- Enhanced cleaning and sanitizing protocols have been implemented.
- Additional training and operating processes for restaurant employees.
- Increased handwashing procedures, face masks, and gloves provided.
- Health screening process for employees, including temperature checks.
Challenges Ahead
- Operating environment remains extremely fluid due to COVID-19.
- 14 restaurants in California are offering takeout only after reclosing indoor dining.
- Opening dates for new restaurants under construction depend on the COVID-19 situation.
- Comparable restaurant sales growth decreased by 85.4%.
- Adjusted EBITDA decreased to ($8.4) million compared to $1.6 million in the same quarter of the previous year.