KRUS: Kura's Pricing Power
(Kura Sushi US Q1 2022 Earnings)
The first quarter of the financial year (September to November for Kura Sushi KRUS 0.00%↑ ) tends to be the weakest for this small sushi chain. Despite the seasonal environment and the lingering operational pressures afforded by covid, Kura printed great numbers. Record quarterly sales, 3 additional units opened, and restaurant-level margins that are beginning to look like pre-covid levels. Most interestingly, the company is managing to offset some of their inflationary costs through pricing power, without the churn of consumers.
Today’s memo will focus on three key areas: (1) Kura’s Successful Winter; (2) Pricing Power and; (3) Stores and Rewards. For additional company-related commentary, please review my previous Kura Sushi memos (“KRUS: A 2022 Story, with a Price Tag”, “A Turnaround Story for Rotating Sushi”, “Kaitensushi (回転寿司)”.