By Kailyn Rhone

Kura Sushi USA had a narrower loss in the latest quarter as sales rose with new restaurant openings.

The Irvine, Calif.-based sushi restaurant chain on Tuesday reported a first-quarter loss of $961,000, or 8 cents a share, compared with a loss of $2.05 million, or 18 cents a share, for the same period a year earlier. Analysts polled by FactSet had forecast a loss per share of 19 cents.

Sales rose 25% to $64.5 million, above analysts expectations of $61.7 million. Comparable restaurant sales increased 1.8%.

Kura Sushi has opened 16 new restaurants since the first quarter of 2024, exceeding its expectations, the company said.

"Our new openings are exceeding expectations and have us even more excited about Kura's ultimate opportunity in the U.S.," said President and Chief Executive Officer Hajime Uba.

Kura Sushi said labor and related costs as a percentage of sales were 32.9%, up from 31.9% a year earlier, while food and beverage costs as a percentage of sales declined to 29% from 29.8% last year, driven by increases in menu prices.

For fiscal 2025, the company anticipates 14 new restaurant openings, maintaining an annual unit growth rate higher than 20% with average net capital expenditures per unit of about $2.5 million.

Kura Sushi expects sales between $275 million and $279 million for fiscal 2025.

Shares of Kura Sushi USA rose 7% to $109.96 in after-hours trading Tuesday. For the year, shares are up 12%.

Write to Kailyn Rhone at kailyn.rhone@wsj.com

(END) Dow Jones Newswires

January 07, 2025 16:47 ET (21:47 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.