Kura Sushi USA, Inc. KRUS is scheduled to report first-quarter fiscal 2025 results on Jan. 7. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 350%.

KRUS’ Q1 Estimates

The Zacks Consensus Estimate for loss is pegged at 24 cents per share. In the prior-year quarter, the company reported an adjusted loss per share of 18 cents.

The consensus mark for revenues is pegged at $61.7 million, which indicates a gain of 19.8% from the year-ago figure.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Factors to Note Ahead of KRUS Q1 Earnings Release

The company’s top line is likely to have been aided by expansion efforts. Recent openings in the Pacific Northwest, including Beaverton, OR and Tacoma, WA, outperformed expectations, showcasing untapped market potential in the region.

KRUS has been focusing on higher-quality IP partnerships with broader appeal, supplemented by cost-efficient advertising campaigns that highlight product quality and authenticity, further strengthening brand equity. Robust digital and delivery initiatives are likely to have aided the top line.  Expansion of delivery options, including DoorDash, is likely to have aided the off-premise sales.

However, the company’s bottom line is likely to have been hurt by high labor as well as occupancy and operating costs. Increased training costs due to new store openings, as well as general wage increases, are expected to have hurt the bottom line in the quarter to be reported.

What the Zacks Model Unveils for KRUS

Our proven model doesn't predict an earnings beat for Kura Sushi this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

Kura Sushi has an Earnings ESP of 0.00% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering from the Zacks Retail-Wholesale space, as our model shows that these have the right combination of elements to beat on earnings this season.

Brinker International, Inc. EAT currently has an Earnings ESP of +29.94% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

EAT’s earnings for the to-be-reported quarter are expected to increase 65.7% year over year. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, with the average surprise being 12.1%.

Texas Roadhouse, Inc. TXRH has an Earnings ESP of +0.55% and a Zacks Rank of 2 at present.

TXRH’s earnings for the to-be-reported quarter are expected to increase 53.7% year over year. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, with the average surprise being 1.5%.

Chipotle Mexican Grill, Inc. CMG currently has an Earnings ESP of +7.32% and a Zacks Rank of 2.

CMG’s earnings for the to-be-reported quarter are expected to increase 14.3% year over year. It reported better-than-expected earnings in each of the trailing four quarters, with an average earnings surprise of 9.8%.

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

Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report

Brinker International, Inc. (EAT) : Free Stock Analysis Report

Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report

Kura Sushi USA, Inc. (KRUS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research