Kura Sushi USA (KRUS) Q1 2025 earnings summary

Executive summary

• Total sales for Q1 2025 rose 25% year-over-year to $64.5 million, driven by new unit openings, menu price increases, and successful marketing initiatives.

• Comparable restaurant sales increased 1.8% year-over-year, with strong performance in new and smaller markets.

• Net loss narrowed to $0.96 million ($0.08/share) from $2.05 million ($0.18/share) year-over-year, reflecting improved operating leverage.

• Six new restaurants opened in Q1, bringing the total to 70 locations at quarter end.

• Completed a $64.4 million follow-on public offering in November, increasing cash reserves for growth.

Financial highlights

• Restaurant-level operating profit was $11.7 million (18.2% margin), down from 19.5% prior year due to higher labor costs.

• Adjusted EBITDA more than doubled to $3.6 million (5.5% margin), up from $1.8 million (3.4% margin) year-over-year.

• Food and beverage costs improved to 29% of sales (down from 29.8%), while labor costs rose to 32.9% (up from 31.9%).

• General and administrative expenses as a percentage of sales decreased to 13.5% from 16.7%.

• Cash and cash equivalents increased to $107.7 million, with no debt at quarter end.

Outlook and guidance

• Fiscal 2025 sales guidance reaffirmed at $275–$279 million, with plans to open 14 new restaurants and maintain over 20% annual unit growth.

• Average net capital expenditures per new unit projected at $2.5 million.

• G&A expenses expected at 13.5% of sales for the year.

• Sufficient liquidity to fund operations and growth for at least the next 12 months.

• Q2 faces a tough comparable due to absence of IP collaborations and strong prior-year campaign.