NASDAQ$KRUS

Kura Sushi USA Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Kura Sushi's financial performance declined due to COVID-19 restrictions, but initiatives improved sales sequentially.

Kura Sushi USA reported a decrease in total sales to $9.4 million compared to $17.4 million in the first quarter of 2020. The company experienced an operating loss of $6.3 million, and a net loss of $6.4 million, or ($0.76) per diluted share. Despite these losses, Kura Sushi opened three new restaurants and saw a 70% sequential increase in total sales from the previous quarter.

  • Total sales decreased to $9.4 million from $17.4 million in the first quarter of 2020.
  • Operating loss was $6.3 million, compared to an operating loss of $1.4 million in the first quarter of 2020.
  • Net loss was $6.4 million, or ($0.76) per diluted share, compared to a net loss of $1.2 million, or ($0.15) per diluted share, in the first quarter of 2020.
  • Three new restaurants were opened during the first quarter of 2021, located in Fort Lee, NJ; Koreatown (Los Angeles), CA; and Washington DC.

Headline financials

Total Revenue

$9.41M

Previous: $17.4M-46.0%
EPS (adj)

-$0.71

Previous: -$0.15-373.3%
Comparable restaurant sales

-50.8%

No prior period
Restaurant-level operating profit

-$934K

No prior period
Restaurant-level operating profit margin

-9.9%

No prior period
Capital Expenditures

-$6.52M

Previous: -$3.19M-104.1%
Free Cash Flow

-$12.9M

Previous: -$4.42M-191.3%
Net Income

-$6.35M

Previous: -$1.22M-418.8%
Operating Income

-$6.29M

Previous: -$1.39M-352.3%
Gross Profit

-$2.7M

Previous: $1.96M-237.7%
Cash & Equivalents

$2.75M

Previous: $33M-91.7%
Total Assets

$115M

Previous: $116M-0.2%
Stock-Based Comp

$266K

Previous: $121K+119.8%

Revenue & EPS history

Kura Sushi · Revenue · Quarterly

$9.41M

Q1 2021-46%vs Q1 2020
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

Kura Sushi faces tougher state and local operational restrictions, particularly in California, which has led to a decline in comparable restaurant sales in December. The company remains confident about its post-pandemic recovery.

Tailwinds

  • Optimistic about business and its growth potential.
  • Enhanced off-premise offerings through partnership with Square.
  • Financial security provided through relationship with Kura Sushi Japan.
  • Able to operate 27 out of 28 restaurants in Q1 2021.
  • Improved total sales by 70% sequentially from fiscal fourth quarter of 2020.

Headwinds

  • Tougher state and local operational restrictions.
  • California enacted a total ban on both indoor and outdoor dining effective December 6, 2020.
  • December comparable restaurant sales decline of approximately 64%.
  • Sequential decline in sales of approximately 10% from November.
  • Operating in an uncertain environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+2.1%

Avg return

Earnings day

+4.7%

Avg return

5 days after

+10.2%

Avg return

30 days after

52%

16 / 31 earnings

Positive

+43.4%

Q3 2022

Best reaction

-22.4%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026-17.8%-18.5%
Q1 2026+16.8%+29.5%+42.5%
Q4 2025-11.3%-13.0%-1.4%
Q3 2025+1.7%+12.5%+6.4%
Q2 2025+31.6%+25.2%+47.7%
Q1 2025-12.5%-15.0%-30.0%
Q4 2024-4.9%-7.7%+6.8%
Q3 2024-20.8%-11.6%-6.4%
Q2 2024+5.7%+11.1%+1.7%
Q1 2024+19.1%+30.5%+32.7%
Q4 2023-10.6%-16.3%-3.8%
Q3 2023+14.3%+19.5%+5.7%
Q2 2023-14.9%-16.5%-0.8%
Q1 2023-20.6%+2.0%+23.1%
Q4 2022+3.0%+1.1%-2.1%
Q3 2022+43.4%+45.6%+68.4%
Q2 2022-5.6%-6.2%-23.9%
Q1 2022-22.4%-18.3%-36.7%
Q4 2021+36.2%+45.3%+29.5%
Q3 2021+24.4%+32.9%+18.8%
Q2 2021+3.6%+3.0%+10.1%
Q1 2021+10.7%+19.5%+34.0%
Q4 2018+5.9%+10.5%+16.5%
Q4 2020-8.3%-5.6%+7.1%
Q3 2020+4.8%+1.4%+0.5%
Q2 2019-0.7%-12.2%+11.2%
Q2 2020-0.7%-12.2%+11.2%
Q1 2019-3.9%-2.7%-9.2%
Q1 2020-8.0%-12.9%-17.9%
Q3 2019+3.2%+12.1%+31.6%
Q4 2019+3.2%+12.1%+31.6%
Q3 2018

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