Kura Sushi USA ( NASDAQ: KRUS ) stock slid over 20% on Friday after posting disappointing earnings results on Thursday evening.
The California-based sushi chain posted a $0.21 per share loss, $0.03 below the bar set by Wall Street, while also narrowly missing revenue expectations. The company noted that costs as a percentage of sales increased 140 basis points from the prior year to 13.5%. Comparable restaurant sales increased 6.9% from the prior year.
The traffic trends left CEO Hajime Uba still optimistic.
“I’m excited to report another strong quarter where we outperformed industry averages with regards to traffic growth, saw two strong restaurant openings, and delivered restaurant-level operating profit margin that exceeded the same period prior to the pandemic,” he said. “In an environment where consumers are forced to be more careful with their discretionary spending, we’re delighted to see that when our guests go out to eat, they choose to dine with us.”
For the full year, the chain reaffirmed previously provided annual guidance that projected total sales between $183M and $188M, in line with the $185.46M consensus. Still, the disappointing bottom line report caused the stock to crash 19.8% shortly after Friday’s market open.
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Kura Sushi stock crashes 20% on larger than expected loss