Kura Sushi USA (KRUS) Q1 2025 earnings summary

Executive summary

• Total sales for Q1 2025 reached $64.5 million, up 25.2% year-over-year, driven by new restaurant openings, menu price increases, and successful IP collaborations.

• Comparable restaurant sales grew 1.8% year-over-year, with strong performance in new markets and a total restaurant count of 70 at quarter end.

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

• Adjusted EBITDA more than doubled to $3.6 million from $1.8 million year-over-year, with margin improving to 5.5%.

• Completed a $64.4 million follow-on public offering in November 2024, strengthening liquidity for growth.

Financial highlights

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

• Food and beverage costs improved to 29.0% of sales, down from 29.8% year-over-year.

• Labor costs rose to 32.9% of sales from 31.9% due to wage inflation and openings in high-cost markets.

• General and administrative expenses as a percentage of sales fell to 13.5% from 16.7% year-over-year.

• Operating loss improved to $1.5 million from $2.8 million year-over-year, with margin at (2.3%) from (5.5%).

Outlook and guidance

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

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

• General and administrative expenses expected at 13.5% of sales for the year.

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

• Full-year comparable sales expected to be positive, with Q2 comps likely softer due to fewer IP collaborations but stronger back half anticipated.