Q2 2025 Kura Sushi USA Inc Earnings Call Transcript
Key Points
- Kura Sushi USA Inc (KRUS) opened 11 new units to date with six more under construction, indicating strong expansion efforts.
- The company has a robust IP collaboration pipeline for fiscal '26, with seven to eight planned collaborations, which is expected to drive sales.
- Kura Sushi USA Inc (KRUS) has no debt and holds $85.2 million in cash and cash equivalents, showcasing a strong financial position.
- The reservation system, currently being tested, has been well-received and is expected to drive traffic once fully rolled out.
- The company is maintaining a 20%+ unit growth rate, with plans to open 14 units in fiscal year 2025, indicating continued expansion.
- Comparable sales growth was negative 5.3%, with a significant decline in traffic of 8.5%, indicating challenges in maintaining customer visits.
- Labor costs increased by 180 basis points due to wage inflation and sales deleverage, impacting profit margins.
- Restaurant-level operating profit margin decreased to 17.3% from 19.6% in the prior year, reflecting operational challenges.
- The company faced a net loss of $3.8 million, or negative $0.31 per share, compared to a net loss of $1 million in the prior year quarter.
- Uncertainty around tariffs and their potential impact on consumer confidence and supply chain costs poses a risk to future performance.
Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Kura Sushi Fiscal second quarter 2025 earnings conference call. (Operator Instructions) Please note that this call is being recorded. On the call today, we have Hajime Jimmy Uba, President and Chief Executive Officer; Jeffrey Uttz, Chief Financial Officer; and Benjamin Porten, Senior Vice President of Investor Relations and System Development.
And now I'd like to turn the call over to Mr. Porten. Thank you. You may begin.
Thank you, operator. Good afternoon, everyone, and thank you all for joining. By now, everyone should have access to our fiscal second quarter 2025 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 8-K we submitted to the SEC.
Before we begin our formal remarks, I need to remind everyone that part of our
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