Kura Sushi USA Inc., the revolving sushi concept, continues to be bullish on its development in the Pacific Northwest, executives said recently.
The Irvine, Calif.-based division of the international concept is also anticipating labor savings through a reservations-seating idea it is borrowing from its Japanese operations and deploying domestically this fiscal year, said Hajime “Jimmy” Uba, Kura Sushi USA president and CEO, on an earnings call with analysts for the fourth quarter ended Aug. 31.
“Bellevue [Wash.] has been our strongest performer since its opening with our most successful unit being in Washington State,” Uba said. “We have always been excited about the massive potential of the Pacific Northwest market. This year, we finally opened our second unit in the Pacific Northwest with Beaverton, Ore. I'm extremely pleased to share that we were not disappointed.”
After Beaverton, Kura Sushi opened in Tacoma, Wash.
“Tacoma has been a very strong performer since its opening,” Uba said. “While it's still early days, I'm very happy to see that the new units in the Pacific Northwest have exceeded our already high expectations, and I'm very bullish about the long-term potential of this market.”
Kura Sushi completed its back-of-house streamlining efforts in September, after the end of the quarter, the company said.
“Results to-date have delivered the expected improvements to labor cost,” Udo said. “Accordingly, Kuro Japan's reservation and self-seating system is proceeding as scheduled, representing further opportunities for labor efficiencies later in the year.”
Kura Sushi on Monday said its previously announced underwritten public offering of 695,938 shares of its Class A common stock at $85 a share, for expected proceeds of about $56.2 million after the underwriters’ discount. The offering is expected to close on Nov. 13.
“Kura Sushi intends to use the net proceeds from the offering for general corporate purposes, including capital expenditures, working capital, and other business purposes,” the company said.
For the fourth quarter ended Aug. 31, Kura Sushi USA’s net loss was $5.2 million, or 46 cents a share, compared to a net profit of $2.9 million, or 25 cents a share, in the same period last year. Sales were $66 million, compared to $54.9 million in the fourth quarter of 2023.
Same-store sales decreased 3.1% for the fourth quarter.
Kura Sushi USA has 69 locations across 19 states and Washington, D.C. Kura Sushi USA was founded in 2008 as a subsidiary of Kura Sushi Inc., a Japan-based revolving sushi chain with more than 550 restaurants.
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