That's a Wrap, Kura Exits 2022 on a High Note
Kura Sushi concludes 2022 on a high note with restaurant operating margins, average unit volumes, and COGS superior to pre-pandemic levels
Despite now being valued at ~$635 million (down ~32% from ATHs) Kura Sushi, the small-time restaurant operator with 40 stores across the United States, continues to boast an overzealous market valuation. Perhaps it’s their ability to consistently beat expectations. Perhaps it’s because they remain undercovered and somewhat illiquid for their size (the parent organisation owns a considerable amount of outstanding shares). I can’t be sure, nor do I really care. After reporting Q4 earnings last week, Kura rounded off the year in style, continuing to demonstrate a healthy recovery in demand for their service. This includes record sales, an aptitude for handling inflation with declining COGS as a percentage of revenues, a narrowing of operating losses, and evidencing their ability to continue their expansion on their own dime with a return of operating cash flows and a clean balance sheet, absent of debt.
After penning a brief update on Kura Sushi’s third quarter1 back in July, I concluded …