By Shares of Kura Sushi, a restaurant operator known for its conveyor belt sushi, soared in midday trading on Friday following the company’s announcement of strong sales growth in its fiscal first quarter.
Strong Financial Performance
Kura Sushi reported sales of approximately $51.5 million, representing a 31% increase compared to the same period last year. This surpassed analysts’ expectations of $51.4 million, as per FactSet. Additionally, same-store sales, which measure sales performance excluding the impact of store openings and closings, experienced a healthy growth of 3.8%.
Encouraging Progress
Although Kura Sushi’s loss was reduced to 18 cents per share from 21 cents per share in the previous year, it was slightly wider than analysts’ projection of 10 cents per share. Despite this, executives expressed optimism during the conference call as permitting issues at new locations have been resolved, providing confidence for the company to raise its revenue outlook for the current year.
Market Response
The positive earnings report led to a 19% surge in the stock, pushing it up to $88.50 per share. Over the past 12 months, the shares have shown an impressive growth of approximately 84%.
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