Education
About Us
Working with TipRanks
Follow Us
Kura Sushi USA (KRUS)
NASDAQ:KRUS
Top Page
Kura Sushi USA
(NASDAQ:KRUS)
57Neutral
Positive Factors
Financial Performance
Kura Sushi reported first quarter results that were better than expectations.
Growth Potential
The company has ample white space for new units and the capital to open at an accelerated rate, supporting future growth.
Market Position
Kura Sushi USA is positioned as the scaled leader in the fragmented sushi category, with a clear moat defined by the concept's conveyor belts and utilization of guest-facing technology.
Negative Factors
Cannibalization Impact
An elevated level of cannibalization is expected to persist as the company sustains a 20%+ rate of development.
Macroeconomic Challenges
The macro environment remains difficult with inflationary pressure, competitive pricing from other restaurants, and squeezed consumer spending.
Revenue Expectations
F2025 sales guidance with revenue expected to be below prior estimates.
Kura Sushi USA (KRUS) vs. S&P 500 (SPY)
Market Cap
$656.52M
Dividend YieldN/A
Average Volume (3M)284.47K
Price to Earnings (P/E)―
Beta (1Y)1.50
Revenue Growth25.68%
EPS Growth-604.26%
CountryUS
Employees3,300
SectorConsumer Cyclical
Sector Strength51
IndustryRestaurants
Share Statistics
EPS (TTM)-0.69
Shares Outstanding11,066,082
10 Day Avg. Volume316,803
30 Day Avg. Volume284,467
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.65
Price to Cash Flow (P/CF)38.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$94.67Price Target Upside73.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Kura Sushi USA Business Overview & Revenue Model
Company DescriptionKura Sushi USA (KRUS) is a dynamic and innovative restaurant company specializing in the Japanese cuisine sector, with a focus on sushi and other traditional Japanese dishes. The company operates a chain of technology-enhanced, revolving sushi bar restaurants across the United States, providing a unique dining experience that combines authentic Japanese flavors with advanced customer service technology. Kura Sushi USA is committed to delivering quality, freshness, and transparency in its food offerings, aiming to create an engaging and enjoyable dining environment for its customers.
How the Company Makes MoneyKura Sushi USA makes money primarily through its restaurant operations, where it generates revenue by serving sushi and other Japanese dishes to its customers. The company's key revenue streams include dine-in sales, takeout and delivery services, and the sale of alcoholic beverages. Kura Sushi USA's unique selling proposition lies in its revolving sushi bar concept, which enhances customer engagement and encourages higher volume sales. Additionally, the company benefits from strategic partnerships with suppliers to ensure the quality and affordability of its ingredients, contributing to its profitability. The use of technology in its operations, such as automated billing and customer service robots, also helps in streamlining operations and reducing costs, thereby maximizing revenue.
Kura Sushi USA Financial Statement Overview
Summary
Kura Sushi USA demonstrates robust revenue growth and a stable balance sheet, providing a solid foundation for future expansion. However, persistent profitability issues and negative free cash flow are significant challenges. The company needs to focus on operational efficiencies and cost management to improve margins and cash flow.Income Statement
Kura Sushi USA shows a positive trajectory in revenue growth, with TTM revenue of $250.8M, up from $237.9M annually, indicating strong top-line growth. However, the company struggles with profitability, as evidenced by a negative net profit margin, with a TTM net income of -$7.7M. The gross profit margin improved to 27.6% in TTM, indicating better cost management. Despite these improvements, negative EBIT and EBITDA margins highlight ongoing operational challenges.65
Positive
Balance Sheet
The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.67, suggesting manageable leverage. The company has increased its stockholders' equity to $227.6M in TTM, reflecting a stable financial base. However, the rise in total debt to $152.9M may pose future risks. The equity ratio of 56.4% demonstrates a solid foundation but needs careful debt management to maintain financial health.70
Positive
Cash Flow
Despite a challenging operating environment, Kura Sushi USA has managed positive operating cash flow of $17.5M in TTM, highlighting effective cash management. However, negative free cash flow growth due to high capital expenditures poses a risk. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income, but the negative free cash flow to net income ratio is concerning.60
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 250.84M | 237.86M | 187.43M | 141.09M | 64.89M | 45.17M | Gross Profit |
| 69.23M | 29.52M | 28.78M | 21.89M | 6.11M | -4.25M | EBIT |
| -8.02M | -9.95M | 332.00K | -754.00K | -9.99M | -16.50M | EBITDA |
| 4.77M | 3.20M | 9.64M | 5.01M | -5.84M | -13.07M | Net Income Common Stockholders |
| -7.72M | -8.80M | 1.50M | -764.00K | -10.29M | -17.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 107.68M | 50.99M | 78.24M | 35.78M | 40.43M | 9.26M | Total Assets |
| 403.77M | 328.52M | 304.66M | 201.36M | 177.67M | 118.38M | Total Debt |
| 152.86M | 141.35M | 119.56M | 90.81M | 72.96M | 64.51M | Net Debt |
| 45.18M | 90.36M | 49.86M | 55.03M | 32.53M | 55.25M | Total Liabilities |
| 176.19M | 165.98M | 140.02M | 108.06M | 86.83M | 72.67M | Stockholders Equity |
| 227.58M | 162.54M | 164.64M | 93.29M | 90.84M | 45.71M |
| Cash Flow | Free Cash Flow | ||||
| -15.55M | 18.37M | -22.75M | -3.97M | -21.38K | -27.46M | Operating Cash Flow |
| 17.55M | 15.61M | 18.06M | 23.69M | -7.15K | -13.00M | Investing Cash Flow |
| -40.94M | -36.46M | -49.90M | -28.17M | -14.67K | -14.78M | Financing Cash Flow |
| 66.91M | 2.14M | 65.75M | -170.00K | 52.98K | -1.00M |
Kura Sushi USA Technical Analysis
Negative
54.41
Price Trends
68.31
Negative
82.40
Negative
76.94
Negative
Market Momentum
-3.91
Negative
40.45
Neutral
67.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRUS, the sentiment is Negative. The current price of 54.41 is below the 20-day moving average (MA) of 56.44, below the 50-day MA of 68.31, and below the 200-day MA of 76.94, indicating a bearish trend. The MACD of -3.91 indicates Negative momentum. The RSI at 40.45 is Neutral, neither overbought nor oversold. The STOCH value of 67.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRUS.
Kura Sushi USA Risk Analysis
Kura Sushi USA disclosed 53 risk factors in its most recent earnings report. Kura Sushi USA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kura Sushi USA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $11.79B | 27.18 | 34.69% | 1.37% | 16.01% | 42.54% | |
71 Outperform | $2.62B | 15.99 | 41.18% | 2.13% | 4.13% | 56.76% | |
68 Neutral | $811.49M | 52.39 | 4.54% | ― | 1.81% | -15.53% | |
68 Neutral | $4.06B | 405.40 | 2.23% | ― | 15.18% | -48.78% | |
59 Neutral | $12.68B | 11.14 | 0.97% | 3.72% | 1.33% | -21.21% | |
57 Neutral | $656.52M | ― | -3.94% | ― | 25.68% | -604.26% |
* Consumer Cyclical Sector Average
Performance Comparison
KRUS
Kura Sushi USA
54.41
-60.75
-52.75%
BJRI
BJ's Restaurants
35.72
-0.46
-1.27%
TXRH
Texas Roadhouse
175.53
23.27
15.28%
CAKE
Cheesecake Factory
50.48
15.24
43.25%
SHAK
Shake Shack
93.33
-10.70
-10.29%
Kura Sushi USA Earnings Call Summary
Earnings Call Date: Jan 7, 2025 | % Change Since: -46.75% | Next Earnings Date: Apr 8, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, with strong sales growth, profitability improvements, and successful marketing strategies through IP collaborations. However, challenges remain in traffic and labor costs, and the absence of IP collaborations in Q2 presents a potential headwind.Highlights
Positive Comparable Sales and Strong New Openings
KRUS reported a comparable sales growth of 1.8% and successfully opened 6 new units in Q1, demonstrating effective expansion and market penetration.
Improvement in Adjusted EBITDA Margin
The adjusted EBITDA margin increased to 13.5%, a 210 basis point improvement year-over-year, highlighting enhanced profitability and cost control.
Strong Cash Position and No Debt
KRUS ended the fiscal first quarter with $111.7 million in cash and cash equivalents and no debt, strengthening its financial stability.
Successful IP Collaborations Boosted Q1 Performance
The One Piece and Pikmin IP collaborations significantly contributed to the positive performance in Q1, showing effective marketing strategies.
Lowlights
Decline in Traffic
Traffic was down by 2.3%, indicating potential challenges in attracting customers despite positive sales growth.
Labor Cost Challenges
Labor as a percentage of sales increased to 32.9% from 31.9% in the previous year, driven by wage inflation and new restaurant openings in high labor cost markets.
Negative Outlook for Q2 Collaborations
The company faces a difficult comparison for Q2 due to the absence of IP collaborations, which were a key driver of Q1 success.
Company Guidance
During the Kura Sushi USA, Inc. earnings call for the first quarter of fiscal year 2025, guidance was provided on several key metrics. The company reported total sales of $64.5 million, indicating a comparable sales growth of 1.8%. Despite facing challenges such as a 2.3% decline in traffic, Kura Sushi achieved a mix improvement of 4.1%. Cost control strategies led to a reduction in food and beverage costs to 29% of sales and a slight increase in labor costs to 32.9%. The adjusted EBITDA margin improved to 13.5%, a 210 basis point increase from the previous year. The company plans to continue expanding, with a goal of opening four additional units while maintaining an annual unit growth rate above 20%. Total sales for fiscal year 2025 are projected to be between $275 million and $279 million, with general and administrative expenses expected to be 13.5% of sales. Kura Sushi also highlighted the successful launch of new marketing initiatives and technological improvements, which are anticipated to enhance guest experience and operational efficiency.Kura Sushi USA Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Kura Sushi USA Completes Successful Public Offering
Positive
Nov 13, 2024
Kura Sushi USA, Inc., a technology-driven Japanese restaurant chain, successfully closed its public offering of 800,328 Class A common stock shares, raising approximately $64.6 million. Priced at $85 per share, the offering was managed by William Blair, Barclays Capital, and TD Securities among others. The proceeds will be used for general corporate purposes, including capital expenditures and working capital, reflecting Kura Sushi’s growth strategy amid volatile market conditions.
Private Placements and Financing
Kura Sushi USA Announces Public Offering of Stock
Neutral
Nov 12, 2024
Kura Sushi USA, a technology-driven Japanese restaurant brand, is launching an underwritten public offering of Class A common stock, with plans to use the proceeds for general corporate purposes. The offering is managed by William Blair, Barclays Capital, and TD Securities, and is subject to market conditions. Forward-looking statements highlight potential risks including economic factors, competition, and regulatory impacts.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.