NASDAQ$KRUS

Kura Sushi USA Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Kura Sushi's financial performance was marked by increased total sales but a shift to operating and net losses compared to the previous year.

Kura Sushi USA reported a rise in total sales to $63.1 million for the fiscal third quarter of 2024, up from $49.2 million in the same period last year. However, the company experienced an operating loss of $1.2 million and a net loss of $0.6 million, contrasting with the operating income of $1.3 million and net income of $1.7 million in the third quarter of 2023. Comparable restaurant sales saw a modest increase of 0.6%.

  • Total sales increased to $63.1 million from $49.2 million year-over-year.
  • Comparable restaurant sales increased by 0.6% compared to the same quarter last year.
  • The company reported an operating loss of $1.2 million, a decrease from the $1.3 million operating income in the third quarter of 2023.
  • Four new restaurants were opened during the quarter.

Headline financials

Total Revenue

$63.1M

Previous: $49.2M+28.1%
EPS (adj)

-$0.05

Previous: $0.16-131.2%
Capital Expenditures

-$34M

Previous: -$27.2M-24.8%
Free Cash Flow

-$34.5M

Previous: -$25.5M-35.2%
Net Income

-$558K

Previous: $1.68M-133.2%
Operating Income

-$1.17M

Previous: $1.31M-189.4%
Gross Profit

$7.8M

Previous: $8.41M-7.3%
Stock-Based Comp

$1.2M

Previous: $975K+22.8%

Revenue & EPS history

Kura Sushi · Revenue · Quarterly

$63.1M

Q3 2024+28.1%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Kura Sushi updates and reiterates the following annual guidance for the full fiscal year of 2024.

Tailwinds

  • Total sales are expected to be between $235 million and $237 million.
  • The company plans to open 14 new restaurants.
  • Average net capital expenditures per unit for new restaurants are projected to be approximately $2.4 million.
  • General and administrative expenses as a percentage of sales are expected to be between 14.0% and 14.5%, excluding litigation accruals.
  • Position themselves to be able to continue to deliver strong financial results and uninterrupted progress on our core strategic goals of at least 20% annual unit growth, G&A leverage, and operational excellence regardless of the broader economic environment.

Headwinds

  • The current headwinds are macro-driven and transitory.
  • Difficulty in predicting the duration of macroeconomic shifts.
  • Third quarter results were unexpected.
  • Operating loss was $1.2 million compared to operating income of $1.3 million in the third quarter of 2023.
  • Net loss was $0.6 million, or $(0.05) per diluted share, compared to net income of $1.7 million, or $0.16 per diluted share, in the third quarter of 2023.

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 2024

Historical avgQ3 2024

+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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