Q4 2024 Kura Sushi USA Inc Earnings Call Transcript
Key Points
- Kura Sushi USA Inc (KRUS) reported total sales of $66 million for the fiscal fourth quarter, showing a significant increase from $54.9 million in the prior year period.
- The company maintained a positive full-year comparable sales growth of 0.7% despite challenges, with restaurant-level operating margins above 20%.
- Kura Sushi USA Inc (KRUS) successfully opened 14 new units during the fiscal year and has plans to open 14 more in fiscal year 2025, maintaining an annual unit growth rate above 20%.
- The company improved its cost of goods sold as a percentage of sales to 28.5%, a 100 basis point improvement over the prior year, by enhancing ingredient quality while reducing costs.
- Kura Sushi USA Inc (KRUS) has no debt and holds $51 million in cash and cash equivalents, providing a strong liquidity position.
- Comparable restaurant sales performance for the fourth quarter was negative 3.1%, with significant regional disparities, including a negative 8.9% in the Southwest market.
- Labor costs as a percentage of sales increased to 31.1% from 28.8% in the prior year quarter, driven by wage inflation and sales deleverage.
- The company reported an operating loss of $5.8 million compared to an operating income of $2.2 million in the prior year quarter, largely due to litigation expenses and higher labor costs.
- Kura Sushi USA Inc (KRUS) took an impairment charge of $1.6 million due to a changing sales environment at its Florida location.
- General and administrative expenses as a percentage of sales increased to 20.3% from 13.2% in the prior year quarter, primarily due to litigation expenses.
Good afternoon, ladies and gentlemen. And thank you for standing by.
Welcome to the Kura Sushi USA Inc fourth quarter, 2024 earnings call at this time you have been placed in a listen-only mode and the lines will be open for your question. Following the presentation.
Please note that this call is being recorded on the call today. We have Hajime Jimmy Uba, President and Chief Executive Officer, Jeff, Chief Financial Officer and Benjamin Porten SVP, Investor Relations and system development. And I would now like to turn the call over to Mr Porten.
Thank you, operator. Good afternoon, everyone and thank you all for joining by now. Everyone should have access to our fiscal fourth quarter, 2024 earnings release. It can be found at www.kurasushi.com in the investor relations section. A copy of the earnings release has also been included in the eight K we submitted to the SEP before we begin our formal
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