Benzinga | Jul 14, 2021 08:08AM EDT

Kura Sushi Q3 Sales Smashes Estimate

* Kura Sushi USA, Inc. (NASDAQ:KRUS) reported third-quarter sales growth of 557% year-on-year to $18.47 million, beating the consensus of $15.49 million.

* Comparable restaurant sales increased 456% for the quarter.

* Food and beverage costs as a percentage of sales declined to 31.7%, primarily due to lower inventory spoilage.

* The operating margin for the quarter was 4.7%, with an operating income of $0.87 million.

* The company reported an adjusted EBITDA loss of $(2.6) million. Restaurant-level operating profit was $1.1 million.

* Adjusted loss per share of $(0.54), matched the consensus for a loss of $(0.54).

* Cash and equivalents totaled $4.7 million as of May 31, 2021.

* "Fiscal 2021 has been our busiest, and possibly our most productive development year ever as we successfully opened seven new restaurants and entered five new markets," said CEO Hajime Uba.

* As of May 31 2021, the company had all 31 of its restaurants open with indoor dining capacities of 50% to 100%, depending on local requirements.

* Price action: KRUS shares closed higher by 1.05% at $38.58 on Tuesday.