Shares of Kura Sushi USA Inc. (KRUS) surged 17.4% to a new record high following the announcement of their impressive fiscal third-quarter earnings. The California-based Japanese restaurant chain, which went public in August 2019, reported a net income of $1.68 million, or 16 cents per share, for the quarter ending on May 31. This marks a significant increase from the $477 million, or 5 cents per share, reported in the same period last year.
Despite expectations of a decline to 4 cents per share, Kura Sushi exceeded analysts’ predictions by a wide margin. Sales also experienced substantial growth, rising by 29.7% to $49.2 million, just below the expected $49.6 million. Moreover, same-store sales showed strong performance with a growth of 10.3%, surpassing the projected 7.9% rise.
The outstanding results prompted five out of the seven analysts surveyed by FactSet to raise their stock price targets for Kura Sushi. The average target price rose from $82.00 to $97.83 at the end of June. Year to date, Kura Sushi’s stock has more than doubled with a remarkable increase of 110.0%, while the S&P 500 has advanced by 15.3%.
Kura Sushi’s exceptional performance in the third quarter solidifies its position as a leader in the restaurant industry. With ongoing growth and positive market sentiment, the company remains poised for further success in the coming months.