Shares of Kura Sushi (KRUS -1.69%) were moving higher after the revolving-bar sushi chain posted solid results in its second-quarter earnings report.
As of 10:30 a.m. ET, the stock was up 5.5% after gaining as much as 12.7% earlier in the session.
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Kura Sushi's rapid growth continues
Comparable sales at Kura increased just 3%, but overall revenue soared 30.5% to $57.3 million as the company continues its rapid expansion. That figure beat estimates at $56.6 million.
On the bottom line, the company posted adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $2.9 million, up 23% from the year-ago quarter. Kura also gained 190 basis points of leverage on its general and administrative spending. On a generally accepted accounting principles (GAAP) basis, its net loss was essentially flat at $0.09 per share, which was worse than estimates of a $0.03 per share loss.
Kura opened five restaurants in the quarter to bring its grand total to 60. The company also recently partnered with DoorDash, adding a new revenue stream and increasing its exposure. CEO Hajime Uba said, "I'm very pleased to report the ongoing strength of our business as we progress through a record fiscal year."
What's next for Kura Sushi
Looking ahead, the company raised its revenue guidance for the full year from $239 million-$244 million to $243 million-$246 million. It also expects to open 13 to 14 new restaurants this year.
Kura is a unique concept, and with average unit volumes of around $4 million, the business appears to be resonating with customers. The restaurant stock continues to have a bright future in front of it.
