Restaurant chain Kura Sushi's Q3 sales beat estimates

Overview

• Kura Sushi fiscal Q3 sales rise to $74 mln, beating analyst expectations, per LSEG data

• Adjusted EPS for fiscal Q3 beats consensus, reflecting strong operational performance

• Company opened three new restaurants, contributing to growth strategy

Outlook

• Company forecasts fiscal year 2025 sales of approximately $281 mln

• Kura Sushi plans to open 15 new restaurants in fiscal year 2025

• Company expects general and administrative expenses as a percentage of sales to be below 13% exclusive of legal settlements

Result Drivers

• SALES GROWTH - Total sales increased by 17.3% to $74 million, surpassing analyst expectations of $71.8 million

• TRAFFIC DECLINE - Comparable restaurant sales fell 2.1%, partly due to a 2.9% drop in customer traffic

• COST MANAGEMENT - Improved food and beverage cost percentage due to menu price hikes and supply chain initiatives, despite inflation

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for Kura Sushi USA Inc is $79.00, about 8.7% below its July 7 closing price of $85.88

• The stock recently traded at 2,722 times the next 12-month earnings vs. a P/E of 248 three months ago

Press Release: ID:nGNX1v4WG2