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Investing.com - Kura Sushi USA Inc . (NASDAQ:KRUS) reported a surprise profit for its fiscal third quarter, beating analyst expectations and raising its full-year revenue guidance, sending shares up 4.9% as investors cheered the technology-enabled Japanese restaurant concept’s performance.
The company posted a net income of $0.6 million, or $0.05 per diluted share, for the quarter ended May 31, 2025, compared to a net loss of -$0.6 million, or -$0.05 per diluted share, in the same period last year. Analysts had expected a loss of -$0.01 per share. Revenue rose 17.3% to $74 million, exceeding the consensus estimate of $72.13 million.
Despite the strong top-line growth, comparable restaurant sales decreased 2.1% YoY, consisting of negative traffic of 2.9% partially offset by price/mix of 0.8%.
"The third quarter was a very busy one for us, between rolling out the new reservation system, investigating new market opportunities, and building out our IP pipeline," said Hajime Uba, President and CEO of Kura Sushi. "I’m extremely pleased with the results on all three fronts, and very proud of the efforts by our team members to capture the full opportunity of the summer season."
Restaurant-level operating profit reached $13.5 million, representing 18.2% of sales, compared to $12.6 million, or 20.0% of sales, in the third quarter of 2024. Food and beverage costs as a percentage of sales improved to 28.3% from 29.2% a year ago, primarily due to menu price increases and supply chain initiatives.
The company opened three new restaurants during the quarter in Scottsdale, Arizona; Lynnwood, Washington; and McKinney, Texas. Two additional locations were opened after the quarter ended.
Looking ahead, Kura Sushi raised its fiscal 2025 revenue outlook to approximately $281 million, above the analyst consensus of $278 million. The company maintained its plan to open 15 new restaurants this fiscal year, representing an annual unit growth rate above 20%.
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