Kura Sushi stock (NASDAQ: KRUSThe company’s stock was subject to significant swings in after-hours trading as Wall Street digested mixed fiscal third-quarter results. The stock initially fluctuated higher but has since given up on knee-jerk gains, and It is now losing 2.5%.
The Japanese restaurant chain’s total revenue increased $13.9 million to $63.1, in line with expectations, but was offset by higher labor costs and higher occupancy expenses, which led to a 35% increase in restaurant operating costs. As a result, the company broke even on an adjusted basis, with adjusted sales of just $4,000, compared with a net profit of $1.7 million in the same period last year. That was below Wall Street expectations for adjusted profit of $0.01 per share. Restaurant sales grew just 0.6% during the same period, compared with +10.3% in the third quarter of 2023.
On an unadjusted basis, the company lost $600,000, or $0.05 per share, compared with a profit of $0.16 a year earlier.
“We believe the current headwinds are macro-driven and transitory,” Chief Executive Officer Hajime Uba said. “But given the difficulty in predicting the duration of the macroeconomic shift, we believe the most prudent course of action is to prepare for a strong financial performance,” he added.
The company expects total sales in 2024 to be between $235 million and $237 million, beating the consensus estimate of $236.7 million.
