Kura Sushi (KRUS) Q3 Earnings & Revenues Beat Estimates
Kura Sushi USA, Inc. KRUS reported third-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The metrics increased on a year-over-year basis.
Q3 Earnings & Revenues
During the fiscal third quarter, the company reported adjusted earnings per share (EPS) of 16 cents that surpassed the Zacks Consensus Estimate of 5 cents. In the year-ago quarter, it had reported an adjusted EPS of 5 cents.
Quarterly revenues of $49.2 million surpassed the consensus mark by 0.1%. In the prior-year quarter, the company reported revenues of $38 million. The upside was backed by new store development and menu price increases.
Kura Sushi USA, Inc. Price, Consensus and EPS Surprise
Kura Sushi USA, Inc. price-consensus-eps-surprise-chart | Kura Sushi USA, Inc. Quote
Comps Details
During the fiscal third quarter, comparable restaurant sales increased 10.3% year over year. In the previous quarter, the company reported comparable restaurant sales growth of 17.4% year over year.
Operating Highlights
During the fiscal third quarter, operating income amounted to $1.3 million compared with $0.5 million reported in the prior-year quarter. The operating margin was 2.7% compared with 1.2% reported in the prior-year quarter.
General and administrative expenses in the fiscal third quarter came in at $7.0 million compared to $5.9 million in the prior year period. The upside was primarily due to compensation-related costs, professional fees and travel costs.
During the quarter, food and beverage costs (as a percentage of sales) came in at 30.0% compared with 29.7% in the prior-year quarter. The increase was primarily driven by food cost inflation, partially mitigated by menu prices increases.
Adjusted EBITDA in the fiscal third quarter came in at $5.1 million compared with $3.2 million reported in the prior-year quarter.
Balance Sheet
As of May 31, 2023, cash and cash equivalents totaled $70.5 million compared with $22.3 million as of Feb 28, 2023.
Total stockholders’ equity at the end of the fiscal third quarter totaled $159.7 million compared with $92.4 million at the end of second-quarter fiscal 2023.
Store Developments
The company launched one new restaurant in Buford, Georgia, during the third quarter of fiscal 2023. Subsequent to the quarter, the company opened a new restaurant in Framingham, MA. In fiscal 2023, the company anticipates to open nine to 11 new restaurants.
Fiscal 2023 Outlook
For fiscal 2023, the company anticipates sales to be approximately $187 - $189 million. It expects general and administrative expenses (as a percentage of sales) in the range of 15-15.5%.
Zacks Rank & Key Picks
Kura Sushi currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Retail-Wholesale sector include:
BJ's Restaurants, Inc. BJRI sports a Zacks Rank #1 (Strong Buy). BJRI has a long-term earnings growth rate of 15%. The stock has improved 46.7% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for BJ's Restaurants’ 2023 sales and EPS suggests growth of 5.5% and 311.8%, respectively, from the year-ago period’s levels.
Arcos Dorados Holdings Inc. ARCO carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth rate of 9.5%. The stock has rallied 59% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests growth of 13.4% and 4.4%, respectively, from the year-ago period’s levels.
Chuy's Holdings, Inc. CHUY carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 23.4%, on average. Shares of CHUY have skyrocketed 93.2% in the past year.
The Zacks Consensus Estimate for Chuy’s Holdings’ 2023 sales and EPS suggests growth of 9.9% and 27.7%, respectively, from the year-ago period’s levels.
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Kura Sushi USA, Inc. (KRUS) : Free Stock Analysis Report
