Kura Sushi USA, Inc. has recently released its 10-Q report, revealing a technology-enabled Japanese restaurant concept that provides guests with an engaging revolving sushi service model known as the "Kura Experience." The company has expanded its restaurant base to 63 locations in seventeen states and Washington, DC, with plans to open 14 new restaurants in fiscal year 2024.
The 10-Q report shows that during the three months ended May 31, 2024, Kura Sushi USA, Inc. reported sales of $63.1 million, a 28.1% increase from the same period in 2023. The company's restaurant operating costs also saw a significant rise, totaling $55.3 million, a 35.4% increase from the previous year. Additionally, the report indicates a net loss of $558,000 for the three months ended May 31, 2024, compared to a net income of $1.68 million during the same period in 2023.
The increase in sales was primarily driven by the opening of seventeen new restaurants subsequent to May 31, 2023, as well as increases in menu prices. However, the company experienced inflationary pressures affecting its operations, particularly in areas such as labor, repairs and maintenance, restaurant supplies, and energy costs. Kura Sushi USA, Inc. has been able to partially offset these cost pressures through various actions, such as increasing menu prices, productivity improvements, and supply chain initiatives.
The report also highlights the company's key financial definitions, including sales, food and beverage costs, labor and related expenses, occupancy and related expenses, depreciation and amortization expenses, other costs, general and administrative expenses, interest expense, interest income, and income tax expense.
Kura Sushi USA, Inc.'s 10-Q report provides a detailed overview of the company's financial performance, outlining its challenges and growth strategies in the competitive restaurant industry. Following these announcements, the company's shares moved -5.6%, and are now trading at a price of $58.47. Check out the company's full 10-Q submission here.
