Sushi restaurant chain Kura Sushi (NASDAQ:KRUS) will be announcing earnings results tomorrow after the bell. Here’s what investors should know.
Kura Sushi beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $66.01 million, up 20.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS and EBITDA estimates.
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 19.9% year on year to $61.72 million, slowing from the 30.9% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.20 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kura Sushi has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Kura Sushi’s peers in the restaurants segment, only Darden has reported results so far. It beat analysts’ revenue estimates by 0.7%, delivering year-on-year sales growth of 6%. The stock traded up 17.3% on the results.
Read our full analysis of Darden’s earnings results here.Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the restaurants stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.9% on average over the last month. Kura Sushi is down 5.7% during the same time and is heading into earnings with an average analyst price target of $104.75 (compared to the current share price of $96.01).
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