Kura Sushi (KRUS) Stock Plummets After Decline in Customer Traffic

Shares of Kura Sushi dropped 11.6% after reporting a 2.1% decline in comparable restaurant sales due to a 2.9% drop in guest traffic. Despite a profit of $0.05 per share and revenue of $74 million, investors are concerned about the decrease in customer traffic. Total sales grew 17.3% year-over-year, mainly from new restaurant openings, but existing locations are struggling to attract customers. Operating profit margin also decreased to 18.2% due to higher labor expenses. The market reacted strongly to this news, with Kura Sushi’s shares down 21% since the beginning of the year.

Read more at StockStory Media Group: Why Kura Sushi (KRUS) Stock Is Nosediving