NASDAQ$KRUS

Kura Sushi USA Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Kura Sushi reported a significant decrease in total sales and operating income due to temporary restaurant closures caused by the COVID-19 pandemic.

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.

Headline financials

Total Revenue

$2.81M

Previous: $18.8M-85.0%
EPS (adj)

-$1.26

Previous: $0.15-940.0%
Restaurant-level operating profit

-$5.3M

Previous: $3.5M-251.4%
Restaurant-level operating profit margin

-190.1%

Previous: 20.4%-1031.9%
Capital Expenditures

-$9.35M

Previous: $2.82M-431.4%
Free Cash Flow

-$18.5M

Previous: -$370K-4900.0%
Net Income

-$9.15M

Previous: $719K-1372.9%
Operating Income

-$8.03M

Previous: $834K-1062.6%
Gross Profit

-$5.1M

Previous: $2.6M-296.5%
Cash & Equivalents

$17M

No prior period
Total Assets

$114M

No prior period
Stock-Based Comp

$248K

Previous: $155K+60.0%

Revenue & EPS history

Kura Sushi · Revenue · Quarterly

$2.81M

Q3 2020-85%vs Q3 2019
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q3 2020

Historical avgQ3 2020

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro