Kura Sushi USA (KRUS) Q4 2024 earnings summary

Executive summary

• Fiscal year ended with sales of $237.9M, up from $187.4M, and full-year comparable sales increased 0.7%.

• Fourth quarter sales rose to $66M from $54.9M year-over-year, with comparable sales down 3.1%.

• Q4 net loss was $5.2M (-$0.46 per share) versus net income of $2.9M ($0.25 per share) prior year; adjusted net income was $1M ($0.09 per share).

• Opened 14 new units in fiscal year, with five more opened post-quarter and six under construction; Pacific Northwest units exceeded expectations.

• Cost-saving and operational streamlining initiatives fully implemented, supporting margin resilience.

Financial highlights

• Q4 restaurant-level operating profit was $13.8M (20.9% of sales), down from $13.4M (24.4%) last year.

• Adjusted EBITDA for Q4 was $5.5M, down from $6.3M; for the year, $14.6M versus $14.3M in 2023.

• Food and beverage costs improved to 28.5% of sales in Q4, from 29.5% last year, due to menu price increases and supply chain initiatives.

• Labor costs rose to 31.1% of sales in Q4, up from 28.8%, driven by wage increases and sales deleverage.

• Ended quarter with $51M in cash and no debt.

Outlook and guidance

• Fiscal 2025 sales expected between $275M and $279M.

• Plan to open 14 new units, maintaining annual unit growth above 20%, with average net capital expenditures per unit of ~$2.5M.

• General and administrative expenses projected at approximately 13.5% of sales.

• Restaurant-level operating profit margin targeted to remain above 20%.