KRUS: Successive Guidance Upgrade as Kura Face Tougher Comps
KRUS: Successive Guidance Upgrade as Kura Face Tougher Comps
(NASDAQ:KRUS) Kura Sushi US Presents Q2 FY24 Results
Kura Sushi US
Weighting as of writing: 4%
5th April 2024 - Q2 FY24 Results
On April 4th, Kura Sushi US reported earnings for the second quarter of FY24. Nothing major to report and similar themes to previous quarters so will keep this one short. The market valuation is astronomically stupid. Average unit volumes at Kura are $4.28 million and have improved significantly; up 22% since 2019. Nevertheless, the market currently places a value of ~$20.5 million per unit at today’s rates.
At the business level, things continue to tick along nicely. Management raised revenue and store opening expectations for the second successive quarter. Comparable restaurant sales are decelerating as the company lapses aggressive menu price hikes from 2023. H2 is Kura’s strongest season for sales leverage and traffic, typically when the company makes up for losses and weaker margins in H1. With most of the year’s construction behind them, Kura has several tailwinds as they ride into the second half.