Shares of restaurant chain Kura Sushi USA (KRUS -1.41%) skyrocketed on Friday after the company reported financial results for its fiscal first quarter of 2024. Q1 ended in November. And during those three months, the company grew slightly faster than expected. That's why Kura Sushi stock was up a whopping 22.5% as of 1:15 p.m. ET.

The little sushi chain that could

Kura Sushi is very small at only 56 locations. However, the company is growing fast and profitably, which is exciting for investors.

In Q1, Kura Sushi had sales of $51.5 million, which was up 31% year over year. It opened four new locations during the quarter, which provided a substantial sales boost. And same-store sales were also up a modest 3.8%.

On the bottom line, Kura Sushi had an operating loss of $2.8 million and a net loss of $2 million. Losses aren't uncommon for small chains because there are high fixed costs at the corporate level.

That said, on the restaurant level, the numbers looked better, with Kura Sushi turning in a restaurant-level operating margin of 19.5%.

What's next for Kura Sushi?

For its fiscal 2024, Kura Sushi expects to open 12 to 14 new locations. That's an increase from its previous guidance of 11 to 13 new locations.

Having that one extra location in this year's pipeline boosted Kura Sushi's sales outlook. Previously it guided for full-year sales of $238 million to $243 million. But now it's guiding for full-year sales of $239 million to $244 million.

Kura Sushi is a promising chain but it's small. Investors should monitor same-store-sales growth over the coming quarters. As long as those stay strong, it suggests strong consumer demand and that will support management's goal of having 290 locations someday.