Kura Sushi (KRUS) Q2 Earnings: What To Expect

Adam Hejl /
2024/07/08 3:00 am EDT

Sushi restaurant chain Kura Sushi (NASDAQ:KRUS) will be reporting earnings tomorrow after the bell. Here's what investors should know.

Kura Sushi beat analysts' revenue expectations by 1.1% last quarter, reporting revenues of $57.29 million, up 30.4% year on year. It was a mixed quarter for the company: Kura Sushi beat analysts' revenue estimates as it opened five new restaurants during the quarter. On the other hand, its EPS missed Wall Street's expectations.

Is Kura Sushi a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Kura Sushi's revenue to grow 28.2% year on year to $63.1 million, slowing from the 29.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.

Kura Sushi Total Revenue

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days. Kura Sushi has missed Wall Street's revenue estimates three times over the last two years.

Looking at Kura Sushi's peers in the restaurants segment, only Darden has reported results so far. It met analysts' revenue estimates, delivering year-on-year sales growth of 6.8%. The stock traded up 0.8% on the results.

Read our full analysis of Darden's earnings results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the restaurants stocks have fared somewhat better, they have not been spared, with share prices down 5.8% on average over the last month. Kura Sushi is down 32.7% during the same time and is heading into earnings with an average analyst price target of $90 (compared to the current share price of $60.2).

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