Tue, Apr 8, 8:31 PM (18 days ago)
**Kura Sushi USA, Inc. (KRUS) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 sales were $64.9 million, up 13.3% from Q1 2024, driven by new restaurant openings and menu price increases. - **Profit Margins:** Operating loss widened to $4.6 million from $1.7 million, due to increased costs from new restaurants and a $2.1 million litigation settlement. - **Cash Flow:** Operating cash flow was $8.6 million, supported by non-cash charges and changes in operating assets and liabilities. Investing activities used $39.4 million, primarily for property and equipment purchases and long-term investments. **Key Metrics and Trends:** - **Restaurant Openings:** Nine new restaurants opened in Q1 2025, expanding the base to 73 locations. Another 14 openings are planned for the fiscal year. - **Comparable Restaurant Sales:** Decreased by 5.3% in Q1 2025 due to reduced traffic. - **Cost Management:** Food and beverage costs as a percentage of sales decreased to 28.7%, while labor costs increased to 34.8% due to wage rate increases. - **Liquidity:** The company has $85.2 million in cash and cash equivalents, with $45 million available under a revolving credit line. **Uncertainties and Future Operations:** - **Tariffs and Supply Chain:** Potential impacts from tariffs and supply chain disruptions could affect food and operating costs. - **Legal and Regulatory:** Ongoing litigation and regulatory compliance are monitored closely, with recent settlements totaling $5.1 million. - **Growth Strategy:** Continued expansion with new restaurant openings and menu innovations to drive sales growth. **Conclusion:** Kura Sushi USA, Inc. is focused on expanding its restaurant footprint while managing costs and navigating uncertainties. The company's financial health is supported by strong cash reserves and strategic investments, positioning it for future growth despite current challenges.