Kura Sushi (KRUS) beat Q3 Earnings stock Up 1.97% After Hours

📈 KRUS rose 1.97% after hours to $88.49

🔍 Key Results (Quarter Ended May 31, 2025)

  • EPS (non-GAAP): $0.05 vs est. ($0.01)
  • Revenue: $74.0M vs est. $71.8M
  • Net Income: $0.6M, up from a $0.6M loss YoY
  • Same-Store Sales: -2.1% YoY
  • Adjusted EBITDA: $5.4M (margin: 7.3%) vs $4.5M YoY
  • Restaurant-Level Operating Profit: $13.5M (margin: 18.2%)

📅 FY25 Guidance (Updated)

  • Revenue: ~$281M vs est. $278.6M
  • Unit Growth: 15 new restaurants (over 20% YoY growth)
  • G&A/Sales Ratio: Below 13% (excluding legal costs)

💼 Operational & Margin Notes

  • Food & beverage costs improved to 28.3% of sales
  • Labor costs rose to 33.1%
  • Operating loss narrowed to $0.2M (from $1.2M loss YoY)
  • Cash & equivalents: $47.1M as of May 31

⚠️ Risks Highlighted

  • Traffic down 2.9%, leading to lower same-store sales
  • Ongoing wage and utility cost pressure
  • Macroeconomic and expansion-related risks remain

✅ Bottom Line

Kura Sushi beat both EPS and revenue expectations in Q3 FY25, driven by improved margins and continued expansion. FY25 revenue guidance slightly exceeded consensus, supporting a positive long-term growth trajectory.