Kura Sushi USA, Inc. reported a significant increase in financial performance for the three months ended November 30, 2024, with sales reaching $64.5 million, a 25.2% increase from $51.5 million in the same period last year. The company attributed this growth primarily to the opening of 16 new restaurants and menu price increases. Despite the rise in sales, Kura Sushi experienced a net loss of $961,000, an improvement from a net loss of $2.0 million in the prior year, reflecting a 53.1% reduction in losses.
The company's operating loss also improved, decreasing to $1.5 million from $2.8 million year-over-year. Total operating expenses rose to $65.9 million, up from $54.3 million, driven by increased restaurant operating costs, which totaled $57.1 million, a 25.2% increase compared to the previous year. Notably, labor and related costs surged by 29.4% to $21.2 million, largely due to the additional workforce required for the new restaurant openings.
Kura Sushi's operational metrics indicate a growing customer base, with the total number of restaurants expanding to 70 across 20 states and Washington, D.C. The company opened six new locations during the quarter and plans to open a total of 14 new restaurants in fiscal year 2025. Comparable restaurant sales increased by 1.8%, although this was a decline from the 3.8% increase reported in the same quarter of the previous year. The company also reported a decrease in food and beverage costs as a percentage of sales, down to 29.0% from 29.8%, attributed to menu price increases.
In terms of strategic developments, Kura Sushi completed a follow-on public offering on November 13, 2024, raising approximately $64.4 million in net proceeds. These funds are earmarked for general corporate purposes, including capital expenditures and working capital. The company maintains a strong liquidity position, with cash and cash equivalents totaling $107.7 million as of November 30, 2024, compared to $51.0 million at the end of the previous quarter. Looking ahead, Kura Sushi anticipates continued revenue growth and increased operating costs as it expands its restaurant footprint and enhances its operational capabilities.
About KURA SUSHI USA, INC.
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