Total sales were $51. 5 million, to $39. 3 million in the first quarter of 2023. Comparable restaurant sales increased 3. 8% for the first quarter of 2024 from the first quarter of 2023.
Food and beverage prices as a percentage of sales were 29. 8%, compared to 31. 6% in the first quarter of 2023. The reduction is mainly due to higher menu prices, partially offset by food rate inflation.
Labor and similar prices as a percentage of sales remained strong at 31. 6% in the first quarter of 2024, to 31. 9% in the first quarter of 2023.
Occupancy and similar expenses were $3. 9 million, compared to $2. 9 million in the first quarter of 2023. The growth is basically due to the opening of twelve new restaurants since the first quarter of 2023.
General and administrative expenses were $8. 6 million, compared to $6. 6 million in the first quarter of 2023. This increase is basically due to prices similar to compensation, professional fees, and expenses. As a percentage of revenue, general and administrative expenses remained strong at 16. 7% in the first quarter of 2024 compared to 16. 9% in the first quarter of 2023.
Operating loss was $2.8 million compared to operating loss of $2.2 million in the first quarter of 2023.
Income tax expense $38,000, compared to an income tax expense source of $10,000 in the first quarter of 2023.
Net loss of $2. 0 million, or $(0. 18) consistent with diluted interest, compared to a net loss of $2. 1 million, or $(0. 21) consistent with diluted interest, in the first quarter of 2023.
Adjusted EBITDA* was $1.8 million compared to $0.6 million in the first quarter of 2023.
Restaurant Development
During the first quarter of fiscal 2024, the Company opened 4 new restaurants in Pittsburgh, Pennsylvania; Flushing, New York; Tampa, Florida; and Naperville; Illinois.
After November 30, 2023, the Company opened two new ones in Kansas City, Missouri and Skokie, Illinois.
For the full year 2024, the Company reiterates and updates the following guidance for the full year:
Conference
A telephone convention and webcast to discuss the monetary effects of Kura Sushi are scheduled for 5:00 p. m. m. And today. The telephone convention and webcast will be hosted by Hajime “Jimmy” Uba, President and Chief Executive Officer, Jeff Uttz, Chief Financial Officer, and Benjamin Porten, Senior Vice President of Investor Relations and Systems Development.
Interested parties may listen to the conference call via telephone by dialing 201-689-8471. A telephone replay will be available shortly after the call has concluded and can be accessed by dialing 412-317-6671; the passcode is 13742850. The webcast will be available at www.kurasushi.com under the investor relations section and will be archived on the site shortly after the call has concluded.
Kura Sushi will host a fireside chat at ICR’s 26th Annual Conference in Orlando, Florida, on January 9, 2024. The company will also meet with institutional investors at the conference. The Kura Sushi discussion will begin at 9:30 a. m. ET and will be streamed live on www. kurasushi. com in the investor section.
About Kura Sushi USA, Inc.
Kura Sushi USA Inc. es a technology-driven Japanese restaurant concept with 56 locations in 16 states and Washington DC. The company offers its customers a unique dining experience based on original Japanese cuisine and an attractive, revolving sushi service model. Sushi USA, Inc. se established in 2008 as a subsidiary of Kura Sushi, Inc. , a Japanese-founded rotating sushi chain with more than 500 dining locations and 40 years of logo history. For more information, visit www. kurasushi. com.
Key Financial Definitions
Adjusted EBITDA, a non-GAAP measure, is explained as EBITDA plus share-based payment expenses, non-cash lease expenses and asset dispositions, restaurant closing prices and impairments, as well as certain items, such as accrued liabilities for litigation that the Company believes are indicative of the significant effects of its operations. Adjusted EBITDA margin is explained as adjusted EBITDA divided by sales.
Restaurant-level operating source of income (loss), a non-GAAP measure, is explained as operating source of income (loss) plus depreciation and amortization expenses; share-based reimbursement expense; pre-opening costs and general and administrative expenses which are general and recurring cash operating expenses and are essential to support the development and operations of the restaurants; non-monetary rental expenses; and asset disposals, closure costs and restaurant impairments; less company-level share-based reimbursement expenses identified under general and administrative expenses. Restaurant-level operating profit (loss) margin is explained as restaurant-level operating profit (loss) divided by sales.
Comparable Restaurant Sales Performance refers to the change in year-over-year sales for the comparable restaurant base. The Company includes restaurants in the comparable restaurant base that have been in operation for at least 18 months prior to the start of the accounting period presented due to new restaurants experiencing a period of higher sales upon opening. For restaurants that were temporarily closed for consecutive days, which primarily occur during renovations, the comparative period was also adjusted. Performance in comparable restaurant sales represents the percent change in sales from the same period in the prior year for the comparable restaurant base.
Non-GAAP Financial Measures
The Company believes that the use of such non-GAAP monetary measures provides an additional tool for investors to compare the Company’s existing operating effects and trends and monetary measures with those of comparable corporations, which would likely provide similar non-GAAP monetary measures. . to investors. However, you deserve to be aware that Restaurant Operating Advantage (Loss) and Restaurant Operating Advantage (Loss) Margin are monetary measures that are not indicative of the Company’s overall effects, and that Restaurant Operating Advantage (Loss) Restaurant Operating Advantage (Loss) Margin Corporate Points Operating Advantage (Loss) Margin does not directly realize benefits to shareholders due to Corporate Points expenses and certain other expenses excluded from those measures. Additionally, you should be aware, when comparing such non-GAAP monetary measures, that over the long term the Company would likely incur expenses similar to those excluded in calculating those measures. The fact that the Company provides such measures should not be construed as an inference that their long-term effects will not be affected by rare or non-recurring elements. The Company’s calculation of those non-GAAP monetary measures likely would not be comparable to other titled measures calculated through other corporations, because all corporations likely would not calculate those non-GAAP monetary measures in the same manner. Because of those limitations, those non-GAAP monetary measures – GAAP monetary measures do not deserve to be considered in isolation or as a replacement for functionality measures calculated in accordance with GAAP. The Company compensates for these limitations by relying primarily on its GAAP effects and employing those non-GAAP monetary measures in a complementary manner.
Forward-Looking Statements
Except for the forward-looking information contained in this press release, statements contained in this press release or otherwise made through the control of the Company in connection with the subject matter of this press release are forward-looking statements (as explained herein). term in the Private Securities Litigation Reform Act of 1995). ) and involve dangers and uncertainties and are subject to replacement depending on various vital points. This press release includes forward-looking statements that are based on Control’s existing estimates or expectations regarding long-term events or effects. These statements are not ancient in nature and can sometimes be known through words such as “aim”, “may”, “can simply”, “will”, “aim”, “intends”, “deserves”, “can simply”, “can”. “, “expect,” “believes,” “designs,” “estimates,” “continues,” “predicts,” “potential,” “plans,” “anticipates,” or the negatives of those terms, and the like. Matrix Expressions Management’s expectations and assumptions regarding long-term effects are subject to hazards, uncertainties and other matters that may cause actual effects to differ materially from the expected effects or other expectations expressed in the forward-looking statements included in this release. press. include, among others: the Company’s ability to effectively maintain increased sales of our comparable eating places; the Company’s ability to effectively execute our strategy to grow and open new successful eating places; the Company’s ability to expand into new and existing markets, the Company’s projected expansion in the number of its restaurants, macroeconomic situations and other economic points, adding emerging interest rates, the possibility of recession and instability in the money markets; the Company’s ability to compete with many other eating places; the Company’s dependence on vendors, suppliers and distributors, including its majority shareholder Kura Sushi, Inc. ; adjustments in food prices and prices of origin, added to the effect of inflation and tariffs; food protection and foodborne illness considerations; adjustments to customers’ personal tastes and point of acceptance of the Company’s restaurant concept in new markets; increases in the minimum wage and mandatory benefits that may result in particularly higher hard work costs, as well as having an effect on the availability of hard work skills; failure of the Company’s automated devices or computer systems or breach of its network security; the loss of key members of the Company’s control team; the influence of government laws and regulations; volatility in the value of the Company’s common stock; and other dangers and uncertainties as described in the Company’s filings with the Securities and Exchange Commission (“SEC”). These and other points that could cause effects to differ materially from those described in the forward-looking statements contained in this press release can be discovered in the Company’s other filings with the SEC. Undue reliance should not be placed on forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no legal responsibility to update or revise its forward-looking statements, except as required by applicable law.
Investor Relations Contact: Jeff Priester or Steven Boediarto (657) 333-4010 invest@kurausa. com
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