Kura Sushi USA, Inc. KRUS reported first-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The metrics increased on a year-over-year basis.

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During the quarter, management highlighted the return of comparable sales to positive territory and record-high Adjusted EBITDA margins. Additionally, the solid performance of new store openings added to the positives. The company remains focused on cost-control measures, strategic expansion and driving operational excellence to sustain its momentum and deliver growth in the coming periods.

Following the results, the company shares gained 4% during the after-hours trading session yesterday.

KRUS Fiscal Q1 Earnings & Revenues

In the quarter under review, the company reported an adjusted loss per share of 8 cents, narrower than the Zacks Consensus Estimate of a loss of 24 cents. In the year-ago quarter, the company reported an adjusted loss per share of 18 cents.

Kura Sushi USA, Inc. Price, Consensus and EPS Surprise

Kura Sushi USA, Inc. price-consensus-eps-surprise-chart | Kura Sushi USA, Inc. Quote

Quarterly revenues of $64.5 million beat the consensus mark of $62 million by 4%. In the prior-year quarter, the company reported revenues of $51.5 million.

KRUS’ Q1 Comps Rise YoY

During the fiscal first quarter, comparable restaurant sales increased 1.8% year over year. In the year-ago quarter, the company reported comparable restaurant sales growth of 3.8% year over year. The upside was backed by successful One Piece and Pikmin IP collaboration campaigns.

Operating Highlights

During the fiscal first quarter, restaurant-level operating profit amounted to $11.7 million compared with $10.1 million reported in the prior-year quarter. Restaurant-level operating profit margin during the quarter came in at 18.2% compared with 19.5% reported in the year-ago period.

General and administrative expenses in the fiscal first quarter came in at $8.7 million compared to $6.6 million in the prior-year period.

During the quarter, food and beverage costs (as a percentage of sales) came in at 29% compared with 29.8% in the prior-year quarter. The downside is primarily due to a rise in menu prices, partially offset by food cost inflation.

Adjusted EBITDA in the fiscal first quarter came in at $3.6 million compared with $1.8 million reported in the prior-year quarter.

Balance Sheet

As of Nov. 30, 2024, cash and cash equivalents totaled $107.7 million compared with $51 million as of Aug. 31, 2024.

Total stockholders’ equity at the end of the fiscal first quarter totaled $227.6 million compared with $163.7 million at the end of fourth-quarter fiscal 2024.

Store Developments

During the fiscal first quarter, the company opened six new restaurants in Beaverton, OR; Tacoma, WA; Rockville, MD; Cherry Hill, NJ; Bakersfield, CA; and Fishers, IN. The company expects to open 14 new restaurants in fiscal 2025.

Fiscal 2025 Outlook

For fiscal 2025, the company anticipates sales to be $275-$279 million. It expects general and administrative expenses (as a percentage of sales) to be approximately 13.5%.

KRUS’ Zacks Rank & Key Picks

Kura Sushi currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.

Shake Shack Inc. SHAK currently sports a Zacks Rank of 1 (Strong Buy). SHAK has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has gained 89.6% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.

The Zacks Consensus Estimate for SHAK’s 2025 sales and earnings per share (EPS) indicates a rise of 14.7% and 42%, respectively, from the year-ago period’s levels.

Chipotle Mexican Grill, Inc. CMG presently carries a Zacks Rank #2 (Buy). CMG has a trailing four-quarter earnings surprise of 9.8%, on average. The stock has surged 29.7% in the past year.

The consensus estimate for CMG’s 2025 sales and EPS indicates growth of 12.8% and 17.9%, respectively, from the year-ago period’s levels.

Brinker International, Inc. EAT presently carries a Zacks Rank #2. EAT has a trailing four-quarter earnings surprise of 12.1%, on average. The stock has surged 231.3% in the past year.

The consensus estimate for EAT’s fiscal 2025 sales and EPS indicates growth of 9.3% and 44.2%, respectively, from the year-ago period’s levels.

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