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Aug 31, 2023

Kura Sushi Q4 2023 Earnings Report

Kura Sushi achieved record-breaking year with a strong fiscal fourth quarter, driven by comparable sales growth and new restaurant openings.

Key Takeaways

Kura Sushi USA, Inc. reported a successful fiscal fourth quarter and fiscal year 2023. Total sales increased to $54.9 million, with a comparable restaurant sales increase of 6.5%. The company opened four new restaurants and achieved significant growth in operating and net income.

Total sales reached $54.9 million, up from $42.0 million in Q4 2022.

Comparable restaurant sales increased by 6.5% compared to Q4 2022.

Operating income rose to $2.2 million, compared to $1.9 million in Q4 2022.

Net income increased to $2.9 million, or $0.25 per diluted share, compared to $1.9 million, or $0.19 per diluted share, in Q4 2022.

Total Revenue
$54.9M
Previous year: $42M
+30.8%
EPS
$0.25
Previous year: $0.21
+19.0%
Comparable restaurant sales
6.5%
Previous year: 27.6%
-76.4%
Restaurant-level operating margin
24.4%
Previous year: 23.9%
+2.1%
Gross Profit
$9.63M
Previous year: $7.59M
+26.9%
Cash and Equivalents
$69.7M
Previous year: $35.8M
+94.8%
Free Cash Flow
-$852K
Previous year: -$614K
+38.8%
Total Assets
$305M
Previous year: $201M
+51.3%

Kura Sushi

Kura Sushi

Forward Guidance

Kura Sushi anticipates total sales between $238 million and $243 million, general and administrative expenses as a percentage of sales to be approximately 14.5%, and the opening of 11 to 13 new restaurants with average net capital expenditures per unit of approximately $2.5 million for fiscal year 2024.

Positive Outlook

  • Total sales between $238 million and $243 million
  • Opening of 11 to 13 new restaurants
  • Comparable restaurant sales increases
  • Growth strategy execution
  • Expansion in existing and new markets

Challenges Ahead

  • General and administrative expenses as a percentage of sales to be approximately 14.5%
  • Rising interest rates
  • Possibility of a recession
  • Instability in financial markets
  • Changes in food and supply costs, including the impact of inflation and tariffs