Q2 2024 Kura Sushi USA Inc Earnings Call Transcript
Key Points
- Total sales for the fiscal second quarter were $57.3 million, representing comparable sales growth of 3%.
- Traffic growth of 5.9% is a meaningful acceleration over the prior quarter's profit, which was up 3.3%.
- Kura Sushi USA Inc opened 10 restaurants to date, putting them well on track for their new unit guidance of 13 to 14 openings this fiscal year.
- Adjusted EBITDA dollars grew by 23%, demonstrating strong operational performance.
- The company has successfully introduced new projects and the operations teams have effectively implemented them.
- Labor as a percentage of sales was 32.8% compared to 31.0% in the prior year quarter, indicating increased labor costs.
- Severe weather impacted the entire industry, including Kura Sushi USA Inc, which affected their fiscal second quarter results.
- Commodity costs continued to be higher than desired at 29.6% of sales.
- Pre-opening costs were meaningfully higher due to accelerated openings, contributing to increased expenses.
- Operating loss was $1.7 million compared to an operating loss of $1 million in the prior year quarter, largely driven by incremental costs associated with a greater number of unit openings.
A copy of the earnings release has also been included in the eight K we submitted to the SEC.
Before we begin our formal remarks, I need to remind everyone that part of our discussion today will include forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and therefore, you should not put undue reliance on them. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. We refer all of you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition.
Also, during today's call, we will discuss certain non-GAAP financial measures, which we believe to be useful in evaluating our performance presentation of this, additional information should not be considered in isolation nor as a substitute for results prepared in accordance with GAAP and the reconciliations to comparable GAAP measures are
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