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May 31, 2023

Kura Sushi Q3 2023 Earnings Report

Kura Sushi's financial performance improved with increased sales and profitability.

Key Takeaways

Kura Sushi USA, Inc. reported a strong fiscal third quarter with a 30% increase in year-over-year revenue, driven by unit growth and comparable sales trends. The company's G&A leveraging efforts resulted in a 130 basis point improvement over the prior year, contributing to greater profitability.

Total sales increased to $49.2 million from $38.0 million in the third quarter of 2022.

Comparable restaurant sales rose by 10.3% compared to the same quarter last year.

Operating income grew to $1.3 million, up from $0.5 million in the third quarter of 2022.

Net income reached $1.7 million, or $0.16 per diluted share, compared to $0.5 million, or $0.05 per diluted share, in the prior year.

Total Revenue
$49.2M
Previous year: $38M
+29.7%
EPS
$0.16
Previous year: $0.05
+220.0%
Comparable restaurant sales
10.3%
Previous year: 65%
-84.2%
Restaurant-level operating margin
23.5%
Previous year: 22.5%
+4.4%
Gross Profit
$8.41M
Previous year: $6.46M
+30.3%
Cash and Equivalents
$70.5M
Previous year: $36M
+95.9%
Free Cash Flow
-$7.53M
Previous year: $118K
-6478.8%
Total Assets
$286M
Previous year: $196M
+46.4%

Kura Sushi

Kura Sushi

Forward Guidance

For the full fiscal year 2023, the Company reiterates and updates the following annual guidance:

Positive Outlook

  • Total sales between $187 million and $189 million
  • General and administrative expenses as a percentage of sales to be between 15.0% and 15.5%
  • 9 to 11 new restaurants
  • Average net capital expenditures per unit of approximately $2.5 million
  • Company’s guidance assumes no material changes in consumer behavior or broader macroeconomic trends.