Latest news with #KuraSushi
Yahoo
4 days ago
- Business
- Yahoo
The Cheesecake Factory (CAKE) Reports Earnings Tomorrow: What To Expect
Restaurant company Cheesecake Factory (NASDAQ:CAKE) will be announcing earnings results this Tuesday after market close. Here's what to expect. The Cheesecake Factory met analysts' revenue expectations last quarter, reporting revenues of $927.2 million, up 4% year on year. It was a strong quarter for the company, with an impressive beat of analysts' EBITDA estimates and a decent beat of analysts' EPS estimates. Is The Cheesecake Factory a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting The Cheesecake Factory's revenue to grow 4.9% year on year to $948.3 million, in line with the 4.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.06 per share. Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 8 downward revisions over the last 30 days (we track 15 analysts). The Cheesecake Factory has missed Wall Street's revenue estimates four times over the last two years. Looking at The Cheesecake Factory's peers in the restaurants segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Kura Sushi delivered year-on-year revenue growth of 17.3%, beating analysts' expectations by 2.5%, and Darden reported revenues up 10.6%, in line with consensus estimates. Kura Sushi traded down 11.8% following the results while Darden's stock price was unchanged. Read our full analysis of Kura Sushi's results here and Darden's results here. There has been positive sentiment among investors in the restaurants segment, with share prices up 2.7% on average over the last month. The Cheesecake Factory is up 6% during the same time and is heading into earnings with an average analyst price target of $62.41 (compared to the current share price of $66.39). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Business Insider
09-07-2025
- Business
- Business Insider
Kura Sushi reports Q3 adjusted EPS 5c, consensus (1c)
Reports Q3 revenue $73.97M, consensus $71.82M. Comparable restaurant sales decreased 2.1%. Hajime Uba, president and CEO of Kura Sushi (KRUS), stated, 'The third quarter was a very busy one for us, between rolling out the new reservation system, investigating new market opportunities, and building out our IP pipeline and strategizing on how to get the most out of our Bikkurapon collaborations. I'm extremely pleased with the results on all three fronts, and very proud of the efforts by our team members to capture the full opportunity of the summer season and set ourselves up for a great fiscal 2026.' Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Yahoo
08-07-2025
- Business
- Yahoo
Kura Sushi (KRUS) Q3 Earnings and Revenues Beat Estimates
Kura Sushi (KRUS) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of a loss of $0.02 per share. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +350.00%. A quarter ago, it was expected that this company would post a loss of $0.08 per share when it actually produced a loss of $0.14, delivering a surprise of -75%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Kura Sushi, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $73.97 million for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 2.22%. This compares to year-ago revenues of $63.08 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kura Sushi shares have lost about 5.2% since the beginning of the year versus the S&P 500's gain of 5.9%. While Kura Sushi has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kura Sushi was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.18 on $77.7 million in revenues for the coming quarter and breakeven on $280.01 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, El Pollo Loco Holdings (LOCO), is yet to report results for the quarter ended June 2025. This Tex-Mex fast food chain is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -3.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. El Pollo Loco Holdings' revenues are expected to be $125.09 million, up 2.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kura Sushi USA, Inc. (KRUS) : Free Stock Analysis Report El Pollo Loco Holdings, Inc. (LOCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
Kura Sushi USA Announces Fiscal Third Quarter 2025 Financial Results
IRVINE, Calif., July 08, 2025 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. ('Kura Sushi' or the 'Company') (NASDAQ: KRUS), a technology-enabled Japanese restaurant concept, today announced financial results for the fiscal third quarter ended May 31, 2025. Fiscal Third Quarter 2025 Highlights Total sales were $74.0 million, compared to $63.1 million in the third quarter of 2024; Comparable restaurant sales decreased 2.1% for the third quarter of 2025 as compared to the third quarter of 2024; Operating loss was $0.2 million, compared to an operating loss of $1.2 million in the third quarter of 2024; Net income was $0.6 million, or $0.05 per diluted share, compared to net loss of $0.6 million, or $(0.05) per diluted share, in the third quarter of 2024; Adjusted net income* was $0.6 million, or $0.05 per diluted share, compared to an adjusted net income* of four thousand dollars or $0.00 per diluted share, in the third quarter of 2024; Restaurant-level operating profit* was $13.5 million, or 18.2% of sales; Adjusted EBITDA* was $5.4 million; and Three new restaurants opened during the fiscal third quarter of 2025. *Adjusted net income (loss), Restaurant-level operating profit and Adjusted EBITDA are non-GAAP measures and are defined below under 'Key Financial Definitions.' Please see the reconciliation of non-GAAP measures accompanying this release. See also 'Non-GAAP Financial Measures' below. Hajime Uba, President and Chief Executive Officer of Kura Sushi, stated, 'The third quarter was a very busy one for us, between rolling out the new reservation system, investigating new market opportunities, and building out our IP pipeline and strategizing on how to get the most out of our Bikkurapon collaborations. I'm extremely pleased with the results on all three fronts, and very proud of the efforts by our team members to capture the full opportunity of the summer season and set ourselves up for a great fiscal 2026.' Review of Fiscal Third Quarter 2025 Financial Results Total sales were $74.0 million compared to $63.1 million in the third quarter of 2024. Comparable restaurant sales decreased 2.1%, consisting of negative traffic of 2.9% and price/mix of 0.8% for the third quarter of 2025 as compared to the third quarter of 2024. Food and beverage costs as a percentage of sales were 28.3% compared to 29.2% in the third quarter of 2024. The decrease is primarily due to increases in menu prices and supply chain initiatives, partially offset by food cost inflation. Labor and related costs as a percentage of sales were 33.1% compared to 32.6% in the third quarter of 2024. The increase is primarily due to increases in wage rates, partially offset by increases in menu prices and operational efficiencies. Occupancy and related expenses were $5.5 million compared to $4.3 million in the third quarter of 2024. The increase is primarily due to thirteen new restaurants opening since the third quarter of 2024. Other costs as a percentage of sales were 14.7% compared to 14.1% the third quarter of 2024. The increase is primarily driven by utilities, repairs and maintenance, partially offset by lower marketing expenses. General and administrative expenses were $8.7 million compared to $8.9 million in the third quarter of 2024. As a percentage of sales, general and administrative expenses decreased to 11.8%, as compared to 14.0% in the third quarter of 2024, primarily due to sales leverage and a decrease in professional fees and litigation expenses. Operating loss was $0.2 million compared to an operating loss of $1.2 million in the third quarter of 2024. Income tax expense was $55 thousand compared to income tax expense of $60 thousand in the third quarter of 2024. Net income was $0.6 million, or $0.05 per diluted share, compared to net loss of $0.6 million, or $(0.05) per diluted share, in the third quarter of 2024. Adjusted net income* was $0.6 million, or $0.05 per diluted share, compared to adjusted net income* of four thousand dollars or $0.00 per diluted share, in the third quarter of 2024. Restaurant-level operating profit* was $13.5 million, or 18.2% of sales, compared to $12.6 million, or 20.0% of sales, in the third quarter of 2024. Adjusted EBITDA* was $5.4 million compared to $4.5 million in the third quarter of 2024. Restaurant Development During the fiscal third quarter of 2025, the Company opened three new restaurants in Scottsdale, Arizona; Lynnwood, Washington; and McKinney, Texas. Subsequent to May 31, 2025, the Company opened two new restaurants in The Woodlands, Texas and Salt Lake City, Utah. Fiscal Year 2025 Outlook For the full fiscal year of 2025, the Company updates the following annual guidance: Total sales of approximately $281 million; 15 new restaurants, maintaining an annual unit growth rate above 20%, with average net capital expenditures per unit of approximately $2.5 million; and General and administrative expenses as a percentage of sales to be below 13.0% exclusive of legal settlements. Conference Call A conference call and webcast to discuss Kura Sushi's financial results is scheduled for 5:00 p.m. EDT today. Hosting the conference call and webcast will be Hajime 'Jimmy' Uba, President and Chief Executive Officer, Jeff Uttz, Chief Financial Officer, and Benjamin Porten, SVP Investor Relations & System Development. Interested parties may listen to the conference call via telephone by dialing 201-689-8471. A telephone replay will be available shortly after the call has concluded and can be accessed by dialing 412-317-6671; the passcode is 13751708. The webcast will be available at under the investor relations section and will be archived on the site shortly after the call has concluded. About Kura Sushi USA, Inc. Kura Sushi USA, Inc. is a leading technology-enabled Japanese restaurant concept with 78 locations across 21 states and Washington DC. The Company offers guests a distinctive dining experience built on authentic Japanese cuisine and an engaging revolving sushi service model. Kura Sushi USA, Inc. was established in 2008 as a subsidiary of Kura Sushi, Inc., a Japan-based revolving sushi chain with more than 650 restaurants internationally and 45 years of brand history. For more information, please visit Key Financial Definitions a non-GAAP measure, is defined as net income (loss) before certain items, such as litigation expenses, that the Company believes are not indicative of its core operating results. Adjusted net income (loss) per diluted share represents adjusted net income (loss) divided by the number of diluted shares. a non-GAAP measure, is defined as net income (loss) before interest, income taxes and depreciation and amortization expenses. a non-GAAP measure, is defined as EBITDA plus stock-based compensation expense, non-cash lease expense and asset disposals, closure costs and restaurant impairments, as well as certain items, such as litigation expenses that the Company believes are not indicative of its core operating results. Adjusted EBITDA margin is defined as adjusted EBITDA divided by sales. a non-GAAP measure, is defined as operating income (loss) plus depreciation and amortization expenses; stock-based compensation expense; pre-opening costs and general and administrative expenses which are considered normal, recurring, cash operating expenses and are essential to supporting the development and operations of restaurants; non-cash lease expense; and asset disposals, closure costs and restaurant impairments; less corporate-level stock-based compensation expense recognized within general and administrative expenses. Restaurant-level operating profit (loss) margin is defined as restaurant-level operating profit (loss) divided by sales. refers to the percent change in year-over-year sales for the comparable restaurant base. The Company includes restaurants in the comparable restaurant base that have been in operation for at least 18 full calendar months by the end of the accounting period presented due to new restaurants experiencing a period of higher sales upon opening. For restaurants that were temporarily closed the comparative period was also adjusted accordingly. Non-GAAP Financial Measures To supplement the financial statements presented in accordance with U.S. generally accepted accounting principles ('GAAP'), the Company presents certain financial measures, such as adjusted net income (loss), EBITDA, adjusted EBITDA, adjusted EBITDA margin, restaurant-level operating profit (loss) and restaurant-level operating profit (loss) margin ('non-GAAP measures') that are not recognized under GAAP. These non-GAAP measures are intended as supplemental measures of its performance that are neither required by, nor presented in accordance with, GAAP. The Company is presenting these non-GAAP measures because the Company believes that they provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and operating results. These measures also may not provide a complete understanding of the operating results of the Company as a whole and such measures should be reviewed in conjunction with its GAAP financial results. Additionally, the Company presents restaurant-level operating profit (loss) because it excludes the impact of general and administrative expenses which are not incurred at the restaurant-level. The Company also uses restaurant-level operating profit (loss) to measure operating performance and returns from opening new restaurants. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware that restaurant-level operating profit (loss) and restaurant-level operating profit (loss) margin are financial measures which are not indicative of overall results for the Company, and restaurant-level operating profit (loss) and restaurant-level operating profit (loss) margin do not accrue directly to the benefit of stockholders because of corporate-level and certain other expenses excluded from such measures. In addition, you should be aware when evaluating these non-GAAP financial measures that in the future the Company may incur expenses similar to those excluded when calculating these measures. The Company's presentation of these measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. The Company's computation of these non-GAAP financial measures may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate these non-GAAP financial measures in the same fashion. Because of these limitations, these non-GAAP financial measures should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. The Company compensates for these limitations by relying primarily on its GAAP results and using these non-GAAP financial measures on a supplemental basis. Forward-Looking Statements Except for historical information contained herein, the statements in this press release or otherwise made by the Company's management in connection with the subject matter of this press release are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and involve risks and uncertainties and are subject to change based on various important factors. This press release includes forward-looking statements that are based on management's current estimates or expectations of future events or future results. These statements are not historical in nature and can generally be identified by such words as 'target,' 'may,' 'might,' 'will,' 'objective,' 'intend,' 'should,' 'could,' 'can,' 'would,' 'expect,' 'believe,' 'design,' 'estimate,' 'continue,' 'predict,' 'potential,' 'plan,' 'anticipate' or the negative of these terms, and similar expressions. Management's expectations and assumptions regarding future results are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements included in this press release. These risks and uncertainties include but are not limited to: the Company's ability to successfully maintain increases in our comparable restaurant sales; the Company's ability to successfully execute our growth strategy and open new restaurants that are profitable; the Company's ability to expand in existing and new markets; the Company's projected growth in the number of its restaurants; macroeconomic conditions and other economic factors; the Company's ability to compete with many other restaurants; the Company's reliance on vendors, suppliers and distributors, including its majority stockholder Kura Sushi, Inc.; changes in food and supply costs, including the impact of inflation and tariffs; concerns regarding food safety and foodborne illness; changes in consumer preferences and the level of acceptance of the Company's restaurant concept in new markets; minimum wage increases and mandated employee benefits that could cause a significant increase in labor costs, as well as the impact of labor availability; the failure of the Company's automated equipment or information technology systems or the breach of its network security; the loss of key members of the Company's management team; the impact of governmental laws and regulations; volatility in the price of the Company's common stock; and other risks and uncertainties as described in the Company's filings with the Securities and Exchange Commission ('SEC'). These and other factors that could cause results to differ materially from those described in the forward-looking statements contained in this press release can be found in the Company's other filings with the SEC. Undue reliance should not be placed on forward-looking statements, which are only current as of the date they are made. The Company assumes no obligation to update or revise its forward-looking statements, except as may be required by applicable law. Investor Relations Contact:Jeff Priester or Steven Boediarto(657) 333-4010investor@ Kura Sushi USA, of Operations and Comprehensive Income (Loss)(in thousands, except for per share data; unaudited) Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 2025 2024 Sales $ 73,965 $ 63,082 $ 203,315 $ 171,848 Restaurant operating costs: Food and beverage costs 20,928 18,391 58,225 50,691 Labor and related costs 24,478 20,534 68,306 55,712 Occupancy and related expenses 5,538 4,318 15,391 12,179 Depreciation and amortization expenses 3,450 3,124 9,827 8,294 Other costs 10,883 8,920 29,004 24,720 Total restaurant operating costs 65,277 55,287 180,753 151,596 General and administrative expenses 8,741 8,857 28,459 25,634 Depreciation and amortization expenses 109 107 328 318 Total operating expenses 74,127 64,251 209,540 177,548 Operating loss (162 ) (1,169 ) (6,225 ) (5,700 ) Other expense (income): Interest expense 30 15 56 35 Interest income (812 ) (686 ) (2,236 ) (2,280 ) Income (loss) before income taxes 620 (498 ) (4,045 ) (3,455 ) Income tax expense 55 60 132 148 Net income (loss) $ 565 $ (558 ) $ (4,177 ) $ (3,603 ) Net income (loss) income per Class A and Class B shares Basic $ 0.05 $ (0.05 ) $ (0.35 ) $ (0.32 ) Diluted $ 0.05 $ (0.05 ) $ (0.35 ) $ (0.32 ) Weighted average Class A and Class B shares outstanding Basic 12,086 11,188 11,855 11,167 Diluted 12,311 11,188 11,855 11,167 Other comprehensive income (loss): Unrealized loss on short-term investments $ (8 ) (76 ) $ (8 ) (43 ) Comprehensive income (loss) $ 557 $ (634 ) $ (4,185 ) $ (3,646 ) Kura Sushi USA, Balance Sheet Data and Selected Operating Data(in thousands, except restaurants and percentages; unaudited) May 31, 2025 August 31, 2024 Selected Balance Sheet Data: Cash and cash equivalents $ 47,132 $ 50,986 Total assets $ 419,373 $ 328,522 Total liabilities $ 192,369 $ 165,984 Total stockholders' equity $ 227,004 $ 162,538 Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 2025 2024 Selected Operating Data: Restaurants at the end of period 76 63 76 63 Comparable restaurant sales performance (2.1 )% 0.6 % (1.9 )% 2.4 % EBITDA $ 3,397 $ 2,062 $ 3,930 $ 2,912 Adjusted EBITDA $ 5,410 $ 4,451 $ 11,656 $ 9,068 Adjusted EBITDA margin 7.3 % 7.1 % 5.7 % 5.3 % Operating loss $ (162 ) $ (1,169 ) $ (6,225 ) $ (5,700 ) Operating loss margin (0.2 )% (1.9 )% (3.1 )% (3.3 )% Restaurant-level operating profit $ 13,492 $ 12,604 $ 36,423 $ 33,874 Restaurant-level operating profit margin 18.2 % 20.0 % 17.9 % 19.7 % Kura Sushi USA, of Net Income (Loss) and Net Income (Loss) Per Diluted Share toAdjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Diluted Share(in thousands, except for per share data; unaudited) Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 2025 2024 Net income (loss) $ 565 $ (558 ) $ (4,177 ) $ (3,603 ) Litigation(3) — 562 2,105 767 Adjusted net income (loss) $ 565 $ 4 $ (2,072 ) $ (2,836 ) Net income (loss) per Class A and Class B diluted shares $ 0.05 $ (0.05 ) $ (0.35 ) $ (0.32 ) Litigation(3) — 0.05 0.18 0.07 Adjusted net income (loss) per Class A and Class B diluted shares $ 0.05 $ 0.00 $ (0.17 ) $ (0.25 ) Weighted average Class A and Class B shares outstanding Diluted shares 12,311 11,188 11,855 11,167 Adjusted diluted shares 12,311 11,531 11,855 11,167 Kura Sushi USA, of Net Income (Loss) to EBITDA and Adjusted EBITDA(in thousands; unaudited) Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 2025 2024 Net income (loss) $ 565 $ (558 ) $ (4,177 ) $ (3,603 ) Interest income, net (782 ) (671 ) (2,180 ) (2,245 ) Income tax expense 55 60 132 148 Depreciation and amortization expenses 3,559 3,231 10,155 8,612 EBITDA 3,397 2,062 3,930 2,912 Stock-based compensation expense(1) 1,293 1,197 3,500 3,169 Non-cash lease expense(2) 720 630 2,121 2,220 Litigation(3) — 562 2,105 767 Adjusted EBITDA $ 5,410 $ 4,451 $ 11,656 $ 9,068 Kura Sushi USA, of Operating Loss to Restaurant-level Operating Profit(in thousands; unaudited) Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 2025 2024 Operating loss $ (162 ) $ (1,169 ) $ (6,225 ) $ (5,700 ) Depreciation and amortization expenses 3,559 3,231 10,155 8,612 Stock-based compensation expense(1) 1,293 1,197 3,500 3,169 Pre-opening costs(4) 404 861 1,305 2,611 Non-cash lease expense(2) 720 630 2,121 2,220 General and administrative expenses 8,741 8,857 28,459 25,634 Corporate-level stock-based compensation in general and administrative expenses (1,063 ) (1,003 ) (2,892 ) (2,672 ) Restaurant-level operating profit $ 13,492 $ 12,604 $ 36,423 $ 33,874 ________________ (1) Stock-based compensation expense includes non-cash stock-based compensation, which is comprised of restaurant-level stock-based compensation included in labor and related costs and corporate-level stock-based compensation included in general and administrative expenses in the statements of operations and comprehensive income (loss). (2) Non-cash lease expense includes lease expense from the date of possession of our restaurants that did not require cash outlay in the respective periods. (3) Litigation includes expenses related to legal claims or settlements. (4) Pre-opening costs consist of labor costs and travel expenses for new employees and trainers during the training period, recruitment fees, legal fees, cash-based lease expenses incurred between the date of possession and opening day of our restaurants, and other related pre-opening costs.
Yahoo
08-07-2025
- Business
- Yahoo
Kura Sushi's Q1 Earnings Call: Our Top 5 Analyst Questions
Kura Sushi's first quarter results were shaped by ongoing expansion into new U.S. markets, successful restaurant openings, and the impact of severe winter weather, which management estimates reduced comparable sales by 400 to 500 basis points. CEO Hajime Jimmy Uba highlighted the company's operational progress, particularly in opening new locations and rolling out technology upgrades. Despite facing a challenging same-store sales comparison due to the absence of a major IP collaboration and weather disruptions, management emphasized improved supply chain efficiency and cost controls. CFO Jeff Uttz noted that 'cost of goods sold as a percentage of sales improved by 90 basis points over the prior year quarter,' pointing to pricing and sourcing changes as key drivers. Is now the time to buy KRUS? Find out in our full research report (it's free). Revenue: $64.89 million vs analyst estimates of $65.07 million (13.3% year-on-year growth, in line) Adjusted EPS: -$0.14 vs analyst estimates of -$0.14 (in line) Adjusted EBITDA: $2.67 million vs analyst estimates of $2.93 million (4.1% margin, relatively in line) The company reconfirmed its revenue guidance for the full year of $277 million at the midpoint Operating Margin: -7.1%, down from -2.9% in the same quarter last year Locations: 73 at quarter end, up from 59 in the same quarter last year Same-Store Sales fell 5.3% year on year (3% in the same quarter last year) Market Capitalization: $1.10 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Andrew Charles (TD Cowen) asked about the recovery in traffic after weather disruptions, and CFO Jeff Uttz replied that March performance was smooth but uncertainty remains due to recent tariff announcements. Jeffrey Bernstein (Barclays) pressed for evidence distinguishing weather impacts from broader consumer softness; Uttz maintained that recent trends reflected weather rather than consumer weakness, but flagged uncertainty from tariffs. Jeremy Hamblin (Craig Hallum) inquired about sources of wage pressure, with Uttz clarifying that high single-digit wage inflation was seen across all markets, not just California, and was driven by statutory minimum wages and market competitiveness. Matt Curtis (William Blair) questioned the assumptions behind second-half comparable sales, and Uttz responded that guidance reflects expectations for improved performance from new unit openings and upcoming IP collaborations but did not provide explicit comp guidance. JP Wellm (Roth Capital Partners) focused on the reservation system rollout and loyalty-driven marketing, with Uttz emphasizing that system-wide implementation is a top priority and that rewards members are expected to drive higher frequency and spend. In upcoming quarters, our analyst team will be monitoring (1) the pace and impact of the reservation system rollout on guest traffic and visit frequency, (2) execution and guest response to new IP collaboration campaigns, and (3) the effect of tariffs and wage inflation on both costs and competitive positioning. Ongoing progress in new market expansion and the adoption of technology upgrades will also be important indicators of future growth. Kura Sushi currently trades at $90.77, up from $41.36 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
