Kura Sushi USA, Inc. (NASDAQ: KRUS), a technology-driven Japanese restaurant chain, reported financial results for its fiscal first quarter ending November 30, 2024. The company operates a unique revolving sushi model and currently has 70 locations across 20 states and Washington D.C.

For the first quarter of fiscal 2025, Kura Sushi experienced a rise in key financial metrics. Total sales reached $64.5 million, a 25% increase from $51.5 million in the same period last year. Comparable restaurant sales grew by 1.8%, with a regional breakdown that showed a 7.8% increase in the West Coast market versus a 2.3% decline in the Southwest market.

The company’s operating loss improved to $1.5 million compared to a loss of $2.8 million in the prior year quarter. The net loss also decreased to $1 million, or $0.08 per diluted share, improving from a net loss of $2 million, or $0.18 per diluted share, in the first quarter of 2024.

Restaurant-level operating profit was reported at $11.7 million, accounting for 18.2% of sales, down from 19.5% in the previous year quarter, primarily due to increased labor costs. Adjusted EBITDA was recorded at $3.6 million, up from $1.8 million in the prior year, indicating a significant increase in company-wide profitability.

Kura Sushi opened six new restaurants during the quarter, contributing to a total of 70 locations. The company achieved a 80 basis point reduction in food and beverage costs as a percentage of sales, down to 29% from 29.8% in the previous year, reflecting pricing and supply chain efforts. Labor costs rose as a percentage of sales to 32.9%, compared to 31.9% in the year-ago quarter, mainly due to wage inflation and new restaurant openings.

Guidance for the fiscal year 2025 remains unchanged, with total sales projections between $275 million and $279 million, and a plan to open 14 new units. General and administrative expenses are expected to represent approximately 13.5% of total sales. At the end of the first quarter, Kura Sushi had $107.7 million in cash and no debt, bolstered by the follow-on public offering completed in November.