Kura Sushi USA (KRUS) Q4 2024 earnings summary

Executive summary

• Fiscal year ended with results outperforming prior expectations, with Q4 sales rising to $66 million from $54.9 million year-over-year, despite sales pressures in the back half of the year.

• Fourth quarter comparable sales were -3.1%, better than previously anticipated negative high single digits.

• Full-year comparable sales were positive at 0.7%, with restaurant-level operating profit margins above 20%.

• Fiscal year net loss was $8.8 million, or $(0.79) per diluted share, compared to net income of $1.5 million, or $0.14 per share, in 2023.

• New fiscal year has started strong, with Q1 outperforming Q4 and new unit openings exceeding expectations.

Financial highlights

• Fourth quarter total sales reached $66 million, up from $54.9 million year-over-year.

• Restaurant-level operating profit margin for Q4 was 20.9%, down from 24.4% year-over-year.

• Labor costs increased to 31.1% of sales, up from 28.8%, due to wage inflation and sales deleverage.

• Net loss for Q4 was $5.2 million (-$0.46 per share), compared to net income of $2.9 million ($0.25 per share) prior year; adjusted net income was $1 million ($0.09 per share).

• Adjusted EBITDA was $5.5 million, down from $6.3 million year-over-year.

Outlook and guidance

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

• 14 new unit openings planned, maintaining annual unit growth rate above 20%.

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

• Restaurant-level operating profit margins expected to remain above 20%.

• Average net capital expenditures per new unit expected to be approximately $2.5 million.