Shares of Kura Sushi USA, Inc. (NASDAQ: KRUS) surged 5.26% in pre-market trading on Wednesday, following the release of its second-quarter fiscal 2025 earnings report. Despite mixed results, investors appear to be focusing on the company's ambitious expansion plans and strong cash position.
The restaurant chain, known for its innovative conveyor belt sushi concept, reported total sales of $64.9 million, up from $57.3 million in the prior year period. However, comparable sales growth was negative 5.3%, with a significant decline in traffic of 8.5%. The company posted a net loss of $3.8 million or $0.31 per share, wider than the $1 million loss reported in the same quarter last year.
Despite these challenges, Kura Sushi's expansion plans seem to be driving investor optimism. The company has opened 11 new units to date, with another six under construction. Management reaffirmed its commitment to maintaining a 20%+ unit growth rate, with plans to open 14 new restaurants in fiscal year 2025. Additionally, Kura Sushi reported a strong cash position of $85.2 million with no debt, providing financial flexibility for its growth strategy. The company also highlighted upcoming IP collaborations, including partnerships with popular franchises like Demon Slayer, One Piece, and Nintendo's Kirby, which could potentially drive future sales and customer engagement.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.