Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2023 | Dec. 28, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2023 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | |
Trading Symbol | KRUS | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | KURA SUSHI USA, INC. | |
Entity Central Index Key | 0001772177 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity File Number | 001-39012 | |
Entity Tax Identification Number | 26-3808434 | |
Entity Address, Address Line One | 17461 Derian Avenue | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Postal Zip Code | 92614 | |
City Area Code | 657 | |
Local Phone Number | 333-4100 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 10,163,104 | |
Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,000,050 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2023 | Aug. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 64,161 | $ 69,697 |
Short-term investments | 7,046 | 8,542 |
Accounts and other receivables | 4,865 | 5,048 |
Inventories | 1,771 | 1,747 |
Prepaid expenses and other current assets | 4,204 | 4,233 |
Total current assets | 82,048 | 89,371 |
Non-current assets: | ||
Property and equipment – net | 114,346 | 106,427 |
Operating lease right-of-use assets | 107,853 | 103,884 |
Deposits and other assets | 5,050 | 4,977 |
Total assets | 309,297 | 304,659 |
Current liabilities: | ||
Accounts payable | 8,871 | 7,248 |
Accrued expenses and other current liabilities | 3,429 | 2,751 |
Salaries and wages payable | 6,167 | 7,595 |
Finance leases – current | 52 | 70 |
Operating lease liabilities – current | 10,457 | 9,225 |
Sales tax payable | 1,774 | 1,694 |
Total current liabilities | 31,109 | 29,138 |
Non-current liabilities: | ||
Finance leases – non-current | 22 | 31 |
Operating lease liabilities – non-current | 113,773 | 110,234 |
Other liabilities | 652 | 615 |
Total liabilities | 145,556 | 140,018 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 1,000 shares authorized, no shares issued or outstanding | ||
Additional paid-in capital | 189,915 | 188,771 |
Accumulated deficit | (26,231) | (24,184) |
Accumulated other comprehensive income | 46 | 43 |
Total stockholders' equity | 163,741 | 164,641 |
Total liabilities and stockholders' equity | 309,297 | 304,659 |
Affiliated Entity [Member] | ||
Current assets: | ||
Due from affiliate | 1 | 104 |
Current liabilities: | ||
Due to affiliate | 359 | 555 |
Class A | ||
Stockholders' equity: | ||
Common stock | 10 | 10 |
Class B | ||
Stockholders' equity: | ||
Common stock | $ 1 | $ 1 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2023 | Aug. 31, 2023 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Class A | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 10,155,000 | 10,147,000 |
Common stock, shares outstanding | 10,155,000 | 10,147,000 |
Class B | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 1,000,000 | 1,000,000 |
Common stock, shares outstanding | 1,000,000 | 1,000,000 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Sales | $ 51,475 | $ 39,318 |
Restaurant operating costs: | ||
Depreciation and amortization expenses | 2,476 | 1,576 |
Other costs | 7,591 | 5,321 |
Total restaurant operating costs | 45,603 | 34,747 |
General and administrative expenses | 8,609 | 6,642 |
Depreciation and amortization expenses | 104 | 85 |
Total operating expenses | 54,316 | 41,474 |
Operating loss | (2,841) | (2,156) |
Other expense (income): | ||
Interest expense | 8 | 16 |
Interest income | (840) | (94) |
Loss before income taxes | (2,009) | (2,078) |
Income tax expense | 38 | 10 |
Net loss | $ (2,047) | $ (2,088) |
Net loss per Class A and Class B shares | ||
Basic | $ (0.18) | $ (0.21) |
Diluted | $ (0.18) | $ (0.21) |
Weighted average Class A and Class B shares outstanding | ||
Basic | 11,150 | 9,789 |
Diluted | 11,150 | 9,789 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||
Unrealized gain on short-term investments | $ 3 | |
Comprehensive loss | (2,044) | $ (2,088) |
Food and Beverage Costs | ||
Restaurant operating costs: | ||
Cost of goods and services sold | 15,365 | 12,430 |
Labor and Related Costs | ||
Restaurant operating costs: | ||
Cost of goods and services sold | 16,263 | 12,535 |
Occupancy and Related Expenses | ||
Restaurant operating costs: | ||
Cost of goods and services sold | $ 3,908 | $ 2,885 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Class A | Class B | Common Stock Class A | Common Stock Class B | Additional Paid-in-Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
Beginning balances at Aug. 31, 2022 | $ 93,294 | $ 9 | $ 1 | $ 118,970 | $ (25,686) | |||
Beginning balance, shares at Aug. 31, 2022 | 8,788 | 1,000 | ||||||
Stock-based compensation | 650 | 650 | ||||||
Employee stock plan | 51 | 51 | ||||||
Employee stock plan, shares | 3 | |||||||
Net Income (Loss) | (2,088) | (2,088) | ||||||
Ending balances at Nov. 30, 2022 | 91,907 | $ 9 | $ 1 | 119,671 | (27,774) | |||
Ending balance, shares at Nov. 30, 2022 | 8,791 | 1,000 | ||||||
Beginning balances at Aug. 31, 2023 | 164,641 | $ 10 | $ 1 | 188,771 | (24,184) | $ 43 | ||
Beginning balance, shares at Aug. 31, 2023 | 10,147,000 | 1,000,000 | 10,147 | 1,000 | ||||
Stock-based compensation | 1,034 | 1,034 | ||||||
Employee stock plan | 110 | 110 | ||||||
Employee stock plan, shares | 8 | |||||||
Net Income (Loss) | (2,047) | (2,047) | ||||||
Other comprehensive income | 3 | 3 | ||||||
Ending balances at Nov. 30, 2023 | $ 163,741 | $ 10 | $ 1 | $ 189,915 | $ (26,231) | $ 46 | ||
Ending balance, shares at Nov. 30, 2023 | 10,155,000 | 1,000,000 | 10,155 | 1,000 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (2,047) | $ (2,088) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 2,600 | 1,661 |
Stock-based compensation | 1,006 | 650 |
Non-cash lease expense | 1,070 | 844 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | 93 | 108 |
Inventories | (24) | (158) |
Due from affiliate | 102 | 122 |
Prepaid expenses and other current assets | 243 | (568) |
Deposits and other assets | 5 | 43 |
Accounts payable | (411) | (896) |
Accrued expenses and other current liabilities | 1,380 | 1,061 |
Salaries and wages payable | (1,428) | (474) |
Operating lease liabilities | (135) | (162) |
Due to affiliate | (22) | 567 |
Sales tax payable | (4) | (181) |
Net cash provided by operating activities | 2,428 | 529 |
Cash flows from investing activities | ||
Payments for property and equipment | (9,395) | (8,344) |
Payments for initial direct costs | (45) | (95) |
Payments for purchases of liquor licenses | (79) | (811) |
Purchases of short-term investments | (3,000) | |
Redemption of short- term investments | 4,499 | |
Net cash used in investing activities | (8,020) | (9,250) |
Cash flows from financing activities | ||
Repayment of principal on finance leases | (54) | (178) |
Proceeds from exercise of stock options | 110 | 51 |
Net cash provided by (used in) financing activities | 56 | (127) |
Increase (decrease) in cash and cash equivalents | (5,536) | (8,848) |
Cash and cash equivalents, beginning of period | 69,697 | 35,782 |
Cash and cash equivalents, end of period | 64,161 | 26,934 |
Supplemental disclosures of cash flow information | ||
Cash paid for income taxes | 65 | |
Noncash investing activities | ||
Acquisition of finance leases | 28 | |
Amounts unpaid for purchases of property and equipment | $ 2,865 | $ 1,095 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (2,047) | $ (2,088) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Nov. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Nov. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1. Organization and Basis of Presentation Kura Sushi USA, Inc. is a technology-enabled Japanese restaurant concept that provides guests with a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model, which the Company refers to as the “Kura Experience.” Kura Sushi encourages healthy lifestyles by serving freshly prepared Japanese cuisine using high-quality ingredients that are free from artificial seasonings, sweeteners, colorings, and preservatives. Kura Sushi aims to make quality Japanese cuisine accessible to its guests across the United States through affordable prices and an inviting atmosphere. “Kura Sushi USA,” “Kura Sushi,” “Kura,” “our” and the “Company” refer to Kura Sushi USA, Inc. unless expressly indicated or the context otherwise requires. Basis of Presentation The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2023. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2023. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the fiscal year ending August 31, 2024 or for any other future annual or interim period. Fiscal Year The Company’s fiscal year begins on September 1 and ends on August 31, and references made to “fiscal year 2024” and “fiscal year 2023” refer to the Company’s fiscal years ending August 31, 2024 and ended August 31, 2023, respectively. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. Significant items subject to such estimates include asset retirement obligations, stock-based compensation, the useful lives of assets, the assessment of the recoverability of long-lived assets, and income taxes. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. Short-Term Investments Short-term investments consist of certificates of deposits and Treasury bills. The Company considers all highly liquid investments with an original maturity date greater than three months but less than one year as short-term investments. The carrying value of the short-term investments is equivalent to their amortized cost basis. As of November 30, 2023 and August 31, 2023, short-term investments were $ 7.0 million and $ 8.5 million, respectively. The certificates of deposits are deposited at Federal Deposit Insurance Corporation (“FDIC”) insured banks. The certificates of deposits are in amounts of $ 250,000 in multiple banks so that the entire deposit balance is eligible for FDIC insurance. Certificates of deposits and Treasury bills are classified as available-for-sale debt securities which are measured at fair value with unrealized gains or losses recorded in other comprehensive income (loss). As of November 30, 2023, the Company recorded $ 46 thousand in unrealized gains on short-term investments in accumulated other comprehensive income (loss), which consisted of $ 48 thousand in unrealized gains on Treasury bills and $ 2 thousand i n unrealized losses on certificates of deposits. The Compan y reclassified $ 106 thousand out of accumulated other comprehensive income into earnings for the period related to maturities of certificates of deposits and a Treasury bill, which consisted of $ 62 thousand in realized gains on certificates of deposits and $ 44 thousand in realized gains on a Treasury bill. T he Company determines realized gains or losses on the available-for-sale debt securities on a specific identification method basis. Base d on the evaluation of credit risk factors, the Company has concluded that an allowance for credit losses is unnecessary for its short-term investments. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company’s short-term investments consist of certificates of deposits and Treasury bills that are classified as available-for-sale debt securities which are measured at fair value with unrealized gains or losses recorded in other comprehensive income (loss). Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid and effective for fiscal year beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company is currently in the process of evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance in this update is effective for all public entities for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently in the process of evaluating the effects of this pronouncement on its financial statements and expects the update to results in additional disclosures. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Nov. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Note 2. Balance Sheet Components Accounts and Other Receivables November 30, 2023 August 31, 2023 (amounts in thousands) Lease receivables $ 3,863 $ 3,973 Credit card and other receivables 1,002 1,075 Total accounts and other receivables $ 4,865 $ 5,048 Property and Equipment - net November 30, 2023 August 31, 2023 (amounts in thousands) Leasehold improvements $ 82,214 $ 75,472 Lease assets 6,247 6,247 Furniture and fixtures 38,911 34,213 Computer equipment 3,059 2,792 Vehicles 220 220 Software 1,017 1,016 Construction in progress 13,160 14,369 Property and equipment – gross 144,828 134,329 Less: accumulated depreciation and amortization ( 30,482 ) ( 27,902 ) Total property and equipment – net $ 114,346 $ 106,427 Depreciation and amortization expense for property and equipment was $ 2.6 million and $ 1.7 million for the three months ended November 30, 2023 and November 30, 2022 , respectively. |
Leases
Leases | 3 Months Ended |
Nov. 30, 2023 | |
Leases [Abstract] | |
Leases | Note 3. Leases The Company has operating and finance leases for its corporate office, restaurant locations, office equipment, kitchen equipment and automobiles. The Company’s leases have remaining lease terms of less than 1 year to 20 years, some of which include options to extend the leases. Lease related costs recognized in the statements of operations and comprehensive income (loss) are as follows: Three Months Ended November 30, 2023 2022 (amounts in thousands) Finance lease cost Classification Amortization of right-of-use assets Depreciation and amortization expenses $ 148 $ 235 Interest on lease liabilities Interest expense 1 4 Total finance lease cost $ 149 $ 239 Three Months Ended November 30, 2023 2022 (amounts in thousands) Operating lease cost Classification Operating lease cost Occupancy and related expenses, other costs and general and administrative expenses $ 3,061 $ 2,262 Variable lease cost Occupancy and related expenses, and general and administrative expenses 851 645 Total operating lease cost $ 3,912 $ 2,907 Supplemental balance sheet information related to leases is as follows: Operating Leases November 30, 2023 August 31, 2023 (amounts in thousands) Right-of-use assets $ 107,853 $ 103,884 Lease liabilities – current $ 10,457 $ 9,225 Lease liabilities – non-current 113,773 110,234 Total lease liabilities $ 124,230 $ 119,459 Finance Lease Assets – net November 30, 2023 August 31, 2023 (amounts in thousands) Property and equipment $ 6,247 $ 6,247 Accumulated depreciation ( 4,092 ) ( 3,945 ) Total property and equipment – net $ 2,155 $ 2,302 Finance Leases Liabilities November 30, 2023 August 31, 2023 (amounts in thousands) Finance lease – current $ 52 $ 70 Finance lease – non-current 22 31 Total finance lease liabilities $ 74 $ 101 Three months ended November 30, 2023 2022 Weighted Average Remaining Lease Term (Years) Operating leases 16.1 16.0 Finance leases 1.4 0.6 Weighted Average Discount Rate Operating leases 7.0 % 6.6 % Finance leases 4.3 % 4.7 % Supplemental disclosures of cash flow information related to leases are as follows: Three Months Ended November 30, 2023 2022 (amounts in thousands) Operating cash flows paid for operating lease liabilities $ 2,425 $ 1,865 Operating right-of-use assets obtained in exchange for new operating lease liabilities $ 4,990 $ 4,911 As of November 30, 2023, the Company had an additional $ 43.3 million of operating leases related to restaurants for which the Company had not yet taken possession. Subsequent to November 30, 2023, the Company entered into two additional operating leases related to restaurants for which the Company has not yet taken possession. The lease liabilities associated with the leases after November 30, 2023 is $ 6.7 million . The operating leases are expected to commence in fiscal year 2024, with a lease terms of 20 years. Maturities of lease liabilities, net of lease receivables, were as follows: Operating Leases Finance Leases (amounts in thousands) Remainder of 2024 $ 4,853 $ 48 2025 9,505 24 2026 11,451 4 2027 11,764 — 2028 11,375 — Thereafter 156,671 — Total lease payments 205,619 76 Less: imputed interest ( 81,389 ) ( 2 ) Present value of lease liabilities $ 124,230 $ 74 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Nov. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 4. Related Party Transactions Kura Sushi, Inc. (“Kura Japan”) is the majority stockholder of the Company and is incorporated and headquartered in Japan. In August 2019, the Company entered into a Shared Services Agreement with Kura Japan, pursuant to which Kura Japan provides the Company with certain strategic, operational and other support services, including assigning certain employees to work for the Company as expatriates to provide support to the Company’s operations, sending its employees to the Company on a short-term basis to provide support for the opening of new restaurants or renovation of existing restaurants, and providing the Company with certain supplies, parts and equipment for use in the Company’s restaurants. In addition, the Company has agreed to continue to provide Kura Japan with certain translational support services, and market research. In exchange for such services, supplies, parts and equipment, the parties pay fees to each other as set forth under the Shared Services Agreement. A right of setoff is not required; however, from time to time, either party will net settle transactions as needed. Purchases of administrative supplies, expatriate salaries and travel and other administrative expenses payable to Kura Japan are included in general and administrative expenses in the accompanying statements of operations and comprehensive income (loss). Purchases of equipment from Kura Japan are included in property and equipment in the accompanying balance sheets. In August 2019, the Company entered into an Amended and Restated Exclusive License Agreement (the “License Agreement”) with Kura Japan. Pursuant to the License Agreement, the Company pays Kura Japan a royalty fee of 0.5 % of the Company’s net sales in exchange for an exclusive, royalty-bearing license for use of certain of Kura Japan’s intellectual property rights, including, but not limited to, Kura Japan’s trademarks for “Kura Sushi,” “Mr. Fresh” and “Kura Revolving Sushi Bar,” and patents for a food management system and the Mr. Fresh protective dome, among other intellectual property rights necessary to continue operation of the Company’s restaurants. Royalty payments to Kura Japan are included in other costs at the restaurant level in the accompanying statements of operations and comprehensive income (loss). On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, as amended, to provide the Company a revolving credit line of $ 45.0 million (the “Revolving Credit Agreement”). For additional information, see “Note 6. Debt.” Balances with Kura Japan are as follows: November 30, 2023 August 31, 2023 (amounts in thousands) Due from affiliate $ 1 $ 104 Due to affiliate $ 359 $ 555 Reimbursements and other payments by the Company to Kura Japan were as follows: Three Months Ended November 30, 2023 2022 (amounts in thousands) Related party transactions: Expatriate salaries expense $ 43 $ 21 Royalty payments 258 197 Travel and other administrative expenses 5 - Purchases of equipment 640 738 Total related party transactions $ 946 $ 956 Reimbursements by Kura Japan to the Company were $ 157 thousand and $ 34 thousand for the three months ended November 30, 2023 and November 30, 2022, respectively. The reimbursements were primarily for directors and officers liability insurance and other administrative expenses. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Nov. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Note 5. Stock-based Compensation The following table summarizes the stock option activity under the Company’s 2018 Incentive Compensation Plan, as amended and restated (the “Stock Incentive Plan”): Options Outstanding Number of Shares Weighted Average Outstanding — August 31, 2023 653,395 $ 34.25 Options granted 16,360 $ 72.25 Options exercised ( 7,241 ) $ 15.15 Options cancelled/forfeited ( 3,816 ) $ 56.75 Outstanding — November 30, 2023 658,698 $ 35.27 The following table summarizes the restricted stock unit (“RSU”) activity under the Stock Incentive Plan: Number of Shares Weighted Average Outstanding — August 31, 2023 31,105 $ 69.88 RSUs granted — — RSUs vested ( 1,359 ) $ 73.58 RSUs cancelled/forfeited ( 351 ) $ 62.14 Outstanding — November 30, 2023 29,395 $ 69.80 The total stock-based compensation recognized under the Stock Incentive Plan in the statements of operations and comprehensive income (loss) is as follows: Three Months Ended November 30, 2023 2022 (amounts in thousands) Restaurant-level stock-based compensation included in other costs $ 147 $ 94 Corporate-level stock-based compensation included in general and administrative expenses 887 556 Amount capitalized to Property and Equipment - net ( 28 ) — Total stock-based compensation, net of amounts capitalized $ 1,006 $ 650 |
Debt
Debt | 3 Months Ended |
Nov. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 6. Debt On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, as amended, establishing a $ 45.0 million revolving credit line for the Company. The maturity date for each advance is 60 months from the date of disbursement and the last day of the period of availability for advances is April 10, 2025. The Revolving Credit Note under the Revolving Credit Agreement has an interest rate for advances fixed at 130 % of the Annual Compounding Long-Term Applicable Federal Rate (“AFR”) on the date such advance is made. There are no financial covenants under the Revolving Credit Agreement with which the Company must comply. As of November 30, 2023 and August 31, 2023, the Company had no o utstanding balance and $ 45.0 million of availability remaining under the Revolving Credit Agreement. For additional information, see “Note 4. Related Party Transactions.” |
Income (Loss) Per Share
Income (Loss) Per Share | 3 Months Ended |
Nov. 30, 2023 | |
Earnings Per Share [Abstract] | |
Income (Loss) Per Share | Note 7 . Income (Loss) Per Share The net income (loss) per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the income for the year has been distributed. As the liquidation and dividend rights for Class A and Class B common stock are identical, the net loss attributable to all common stockholders is allocated on a proportionate basis. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share: Three Months Ended November 30, 2023 2022 Class A Class B Class A Class B (amounts in thousands, except per share data) Net income (loss) attributable to common stockholders $ ( 1,863 ) $ ( 184 ) $ ( 1,875 ) $ ( 213 ) Weighted average common shares outstanding – basic 10,150 1,000 8,789 1,000 Dilutive effect of stock-based awards — — — — Weighted average common shares outstanding – diluted 10,150 1,000 8,789 1,000 Net income (loss) per share attributable to common stockholders – basic $ ( 0.18 ) $ ( 0.18 ) $ ( 0.21 ) $ ( 0.21 ) Net income (loss) per share attributable to common stockholders – diluted $ ( 0.18 ) $ ( 0.18 ) $ ( 0.21 ) $ ( 0.21 ) The Company computes basic income (loss) per common share using net income (loss) and the weighted average number of common shares outstanding during the period, and computes diluted income (loss) per common share using net income (loss) and the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include dilutive outstanding employee stock options and restricted stock units. For the three months ended November 30, 2023 and November 30, 2022, there were 688 thousand and 708 thousand shares of common stock subject to outstanding employee stock options and RSUs that were excluded from the calculation of diluted income per share because their inclusion would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8. Commitments and Contingencies On May 31, 2019, a putative class action complaint was filed by a former employee, Brandy Gomes, in Los Angeles County Superior Court, alleging violations of California wage and hour laws. On July 9, 2020, plaintiff’s counsel filed a first amended class action complaint to add Jamar Spencer, another former employee, as a plaintiff to this action. In addition, the first amended class action complaint added new causes of action alleging violations of California wage and hour laws including a cause of action brought under the California Private Attorney General Act. On August 7, 2020, the Company filed its answer to the first amended complaint, generally denying the allegations in the complaint. In May 2021, a joint stipulation was filed requesting a delay in the class certification hearing date to March 3, 2022, and a mediation was scheduled for September 24, 2021. During the mediation, a settlement was agreed upon in the amount of $ 1.75 million. The Company recorded an accrued liability of $ 1.78 million, including an estimated $ 30 thousand in employer payroll taxes, related to this settlement within general and administrative expenses in the statements of operations and comprehensive income (loss) during the fiscal year ended August 31, 2021. The court granted final approval of the settlement on November 18, 2022. In December 2022, pursuant to the court’s order granting final approval of the settlement, the Company deposited $ 1.78 million into an account controlled by a settlement administrator for disbursement to class participants and other parties to the litigation. A final report regarding the distribution of settlement funds was filed on July 6, 2023. The parties are awaiting the court to sign the amended judgment, which was filed on August 16, 2023 The Company is involved from time to time in various legal proceedings that arise in the ordinary course of business, including but not limited to commercial disputes, environmental matters, employee related claims, intellectual property disputes and litigation in connection with transactions including acquisitions and divestitures. In the opinion of management, the Company does not believe that such litigation, claims, and administrative proceedings, excluding the putative class action matter referenced above, will have a material adverse effect on its business, financial position, results of operations or cash flows. However, a significant increase in the number of these claims or an increase in amounts owing under successful claims, including the putative class action referenced above, could materially and adversely affect its business, financial condition, results of operations or cash flows. The Company records a liability when a loss is considered probable, and the amount can be reasonably estimated. |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes The Company recorded an income tax expense of $ 38 thousand and $ 10 thousand for the three months ended November 30, 2023 and November 30, 2022, respectively. The Company’s effective tax rates for the three months ended November 30, 2023 substantially differed from the federal statutory tax rate of 21 % primarily due to a valuation allowance for the Company’s deferred tax assets. The Company continually monitors and performs an assessment of the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets using a “more likely than not” standard. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Based on the Company’s review of this evidence, management determined that a full valuation allowance against all of the Company’s net deferred tax assets at November 30, 2023 was appropriate. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Nov. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10. Fair Value Measurements The following table sets forth the Company’s assets measured at fair value on a recurring basis as of November 30, 2023. Level 1 Level 2 Level 3 Total (amounts in thousands) Assets: Certificates of deposits $ — $ 4,998 $ — $ 4,998 Treasury bills 2,048 — — 2,048 Total assets at fair value $ 2,048 $ 4,998 $ — $ 7,046 The Company’s cash and cash equivalents include cash on hand, deposits in banks, certificates of deposits and money market funds. Due to their short-term nature, the carrying amounts reported in the accompanying balance sheets approximate the fair value of cash and cash equivalents. The fair value of our certificates of deposits are considered using Level 2 inputs of the fair value hierarchy. Level 2 inputs are based on market data that include factors such as interest rates, market and pricing activity and other market-based valuation techniques. The Company determines realized gains or losses on the available-for-sale debt securities on a specific identification method basis. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Nov. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements (the “Condensed Financial Statements”) have been prepared by the Company in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Financial Statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended August 31, 2023. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 2, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to Financial Statements included in the Company’s Annual Report on Form 10‑K for the fiscal year ended August 31, 2023. In the opinion of management, all adjustments necessary to fairly state the Condensed Financial Statements have been made. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of results to be expected for the fiscal year ending August 31, 2024 or for any other future annual or interim period. |
Fiscal Year | Fiscal Year The Company’s fiscal year begins on September 1 and ends on August 31, and references made to “fiscal year 2024” and “fiscal year 2023” refer to the Company’s fiscal years ending August 31, 2024 and ended August 31, 2023, respectively. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. Significant items subject to such estimates include asset retirement obligations, stock-based compensation, the useful lives of assets, the assessment of the recoverability of long-lived assets, and income taxes. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. |
Short-Term Investments | Short-Term Investments Short-term investments consist of certificates of deposits and Treasury bills. The Company considers all highly liquid investments with an original maturity date greater than three months but less than one year as short-term investments. The carrying value of the short-term investments is equivalent to their amortized cost basis. As of November 30, 2023 and August 31, 2023, short-term investments were $ 7.0 million and $ 8.5 million, respectively. The certificates of deposits are deposited at Federal Deposit Insurance Corporation (“FDIC”) insured banks. The certificates of deposits are in amounts of $ 250,000 in multiple banks so that the entire deposit balance is eligible for FDIC insurance. Certificates of deposits and Treasury bills are classified as available-for-sale debt securities which are measured at fair value with unrealized gains or losses recorded in other comprehensive income (loss). As of November 30, 2023, the Company recorded $ 46 thousand in unrealized gains on short-term investments in accumulated other comprehensive income (loss), which consisted of $ 48 thousand in unrealized gains on Treasury bills and $ 2 thousand i n unrealized losses on certificates of deposits. The Compan y reclassified $ 106 thousand out of accumulated other comprehensive income into earnings for the period related to maturities of certificates of deposits and a Treasury bill, which consisted of $ 62 thousand in realized gains on certificates of deposits and $ 44 thousand in realized gains on a Treasury bill. T he Company determines realized gains or losses on the available-for-sale debt securities on a specific identification method basis. Base d on the evaluation of credit risk factors, the Company has concluded that an allowance for credit losses is unnecessary for its short-term investments. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company’s short-term investments consist of certificates of deposits and Treasury bills that are classified as available-for-sale debt securities which are measured at fair value with unrealized gains or losses recorded in other comprehensive income (loss). |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid and effective for fiscal year beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company is currently in the process of evaluating the effects of this pronouncement on its financial statements and expects the update to result in additional disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance in this update is effective for all public entities for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently in the process of evaluating the effects of this pronouncement on its financial statements and expects the update to results in additional disclosures. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Accounts and Other Receivables | Accounts and Other Receivables November 30, 2023 August 31, 2023 (amounts in thousands) Lease receivables $ 3,863 $ 3,973 Credit card and other receivables 1,002 1,075 Total accounts and other receivables $ 4,865 $ 5,048 |
Schedule of Property and Equipment Net | Property and Equipment - net November 30, 2023 August 31, 2023 (amounts in thousands) Leasehold improvements $ 82,214 $ 75,472 Lease assets 6,247 6,247 Furniture and fixtures 38,911 34,213 Computer equipment 3,059 2,792 Vehicles 220 220 Software 1,017 1,016 Construction in progress 13,160 14,369 Property and equipment – gross 144,828 134,329 Less: accumulated depreciation and amortization ( 30,482 ) ( 27,902 ) Total property and equipment – net $ 114,346 $ 106,427 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Leases [Abstract] | |
Summary of Lease Related Costs | Lease related costs recognized in the statements of operations and comprehensive income (loss) are as follows: Three Months Ended November 30, 2023 2022 (amounts in thousands) Finance lease cost Classification Amortization of right-of-use assets Depreciation and amortization expenses $ 148 $ 235 Interest on lease liabilities Interest expense 1 4 Total finance lease cost $ 149 $ 239 Three Months Ended November 30, 2023 2022 (amounts in thousands) Operating lease cost Classification Operating lease cost Occupancy and related expenses, other costs and general and administrative expenses $ 3,061 $ 2,262 Variable lease cost Occupancy and related expenses, and general and administrative expenses 851 645 Total operating lease cost $ 3,912 $ 2,907 |
Summary of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases is as follows: Operating Leases November 30, 2023 August 31, 2023 (amounts in thousands) Right-of-use assets $ 107,853 $ 103,884 Lease liabilities – current $ 10,457 $ 9,225 Lease liabilities – non-current 113,773 110,234 Total lease liabilities $ 124,230 $ 119,459 Finance Lease Assets – net November 30, 2023 August 31, 2023 (amounts in thousands) Property and equipment $ 6,247 $ 6,247 Accumulated depreciation ( 4,092 ) ( 3,945 ) Total property and equipment – net $ 2,155 $ 2,302 Finance Leases Liabilities November 30, 2023 August 31, 2023 (amounts in thousands) Finance lease – current $ 52 $ 70 Finance lease – non-current 22 31 Total finance lease liabilities $ 74 $ 101 Three months ended November 30, 2023 2022 Weighted Average Remaining Lease Term (Years) Operating leases 16.1 16.0 Finance leases 1.4 0.6 Weighted Average Discount Rate Operating leases 7.0 % 6.6 % Finance leases 4.3 % 4.7 % |
Summary of Supplemental Disclosures of Cash Flow Information Related to Leases | Supplemental disclosures of cash flow information related to leases are as follows: Three Months Ended November 30, 2023 2022 (amounts in thousands) Operating cash flows paid for operating lease liabilities $ 2,425 $ 1,865 Operating right-of-use assets obtained in exchange for new operating lease liabilities $ 4,990 $ 4,911 |
Summary of Maturities of Lease Liabilities Net of Lease Receivables | Maturities of lease liabilities, net of lease receivables, were as follows: Operating Leases Finance Leases (amounts in thousands) Remainder of 2024 $ 4,853 $ 48 2025 9,505 24 2026 11,451 4 2027 11,764 — 2028 11,375 — Thereafter 156,671 — Total lease payments 205,619 76 Less: imputed interest ( 81,389 ) ( 2 ) Present value of lease liabilities $ 124,230 $ 74 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions Due to and from Affiliates | Balances with Kura Japan are as follows: November 30, 2023 August 31, 2023 (amounts in thousands) Due from affiliate $ 1 $ 104 Due to affiliate $ 359 $ 555 |
Schedule of Related Party Reimbursements and Other Payments | Reimbursements and other payments by the Company to Kura Japan were as follows: Three Months Ended November 30, 2023 2022 (amounts in thousands) Related party transactions: Expatriate salaries expense $ 43 $ 21 Royalty payments 258 197 Travel and other administrative expenses 5 - Purchases of equipment 640 738 Total related party transactions $ 946 $ 956 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity under Stock Incentive Plan | The following table summarizes the stock option activity under the Company’s 2018 Incentive Compensation Plan, as amended and restated (the “Stock Incentive Plan”): Options Outstanding Number of Shares Weighted Average Outstanding — August 31, 2023 653,395 $ 34.25 Options granted 16,360 $ 72.25 Options exercised ( 7,241 ) $ 15.15 Options cancelled/forfeited ( 3,816 ) $ 56.75 Outstanding — November 30, 2023 658,698 $ 35.27 |
Summary of Restricted Stock Unit (RSU) Activity Under Stock Incentive Plan | The following table summarizes the restricted stock unit (“RSU”) activity under the Stock Incentive Plan: Number of Shares Weighted Average Outstanding — August 31, 2023 31,105 $ 69.88 RSUs granted — — RSUs vested ( 1,359 ) $ 73.58 RSUs cancelled/forfeited ( 351 ) $ 62.14 Outstanding — November 30, 2023 29,395 $ 69.80 |
Summary of Stock Based Compensation Recognized under Stock Incentive Plan | The total stock-based compensation recognized under the Stock Incentive Plan in the statements of operations and comprehensive income (loss) is as follows: Three Months Ended November 30, 2023 2022 (amounts in thousands) Restaurant-level stock-based compensation included in other costs $ 147 $ 94 Corporate-level stock-based compensation included in general and administrative expenses 887 556 Amount capitalized to Property and Equipment - net ( 28 ) — Total stock-based compensation, net of amounts capitalized $ 1,006 $ 650 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Income (Loss) Per Share | The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share: Three Months Ended November 30, 2023 2022 Class A Class B Class A Class B (amounts in thousands, except per share data) Net income (loss) attributable to common stockholders $ ( 1,863 ) $ ( 184 ) $ ( 1,875 ) $ ( 213 ) Weighted average common shares outstanding – basic 10,150 1,000 8,789 1,000 Dilutive effect of stock-based awards — — — — Weighted average common shares outstanding – diluted 10,150 1,000 8,789 1,000 Net income (loss) per share attributable to common stockholders – basic $ ( 0.18 ) $ ( 0.18 ) $ ( 0.21 ) $ ( 0.21 ) Net income (loss) per share attributable to common stockholders – diluted $ ( 0.18 ) $ ( 0.18 ) $ ( 0.21 ) $ ( 0.21 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The following table sets forth the Company’s assets measured at fair value on a recurring basis as of November 30, 2023. Level 1 Level 2 Level 3 Total (amounts in thousands) Assets: Certificates of deposits $ — $ 4,998 $ — $ 4,998 Treasury bills 2,048 — — 2,048 Total assets at fair value $ 2,048 $ 4,998 $ — $ 7,046 |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Additional Information (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2023 | Aug. 31, 2023 | |
Organization and Basis of Presentation [Line Items] | ||
Short-term investments | $ 7,046,000 | $ 8,542,000 |
Unrealized loss on short-term investments | 3,000 | |
Accumulated other comprehensive income into earnings | 46,000 | $ 43,000 |
Certificates of Deposit | ||
Organization and Basis of Presentation [Line Items] | ||
Short-term investments | 250,000 | |
Unrealized loss on short-term investments | (2,000) | |
Accumulated other comprehensive income into earnings | 106,000 | |
Realized gains on short-term investments | 62,000 | |
Treasury Bills | ||
Organization and Basis of Presentation [Line Items] | ||
Unrealized loss on short-term investments | 48,000 | |
Accumulated other comprehensive income into earnings | 106,000 | |
Realized gains on short-term investments | $ 44,000 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Accounts and Other Receivables (Details) - USD ($) $ in Thousands | Nov. 30, 2023 | Aug. 31, 2023 |
Receivables Net Current [Line Items] | ||
Accounts and other receivables | $ 4,865 | $ 5,048 |
Lease Receivables | ||
Receivables Net Current [Line Items] | ||
Accounts and other receivables | 3,863 | 3,973 |
Credit Card and Other Receivables | ||
Receivables Net Current [Line Items] | ||
Accounts and other receivables | $ 1,002 | $ 1,075 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Nov. 30, 2023 | Aug. 31, 2023 |
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | $ 144,828 | $ 134,329 |
Accumulated depreciation | (30,482) | (27,902) |
Total property and equipment – net | 114,346 | 106,427 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | 82,214 | 75,472 |
Lease Assets | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | 6,247 | 6,247 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | 38,911 | 34,213 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | 3,059 | 2,792 |
Vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | 220 | 220 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | 1,017 | 1,016 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment - gross | $ 13,160 | $ 14,369 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Property, Plant and Equipment, Net [Abstract] | ||
Depreciation and amortization expenses | $ 2,600 | $ 1,661 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2023 | Dec. 01, 2023 | |
Lessee Lease Description [Line Items] | ||
Operating and finance leases, remaining lease start range terms description | less than 1 year | |
Operating lease liability not yet commenced, liability | $ 43.3 | |
Option to extend, existence, lease liabilities not yet commenced, operating lease | true | |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Operating and finance leases, remaining lease terms | 20 years | |
Subsequent Event | ||
Lessee Lease Description [Line Items] | ||
Operating lease liability not yet commenced, liability | $ 6.7 | |
Operating lease liabilities not yet commenced, lease term | 20 years |
Leases - Summary of Lease Relat
Leases - Summary of Lease Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Finance lease cost | ||
Amortization of right-of-use assets | $ 148 | $ 235 |
Interest on lease liabilities | 1 | 4 |
Total finance lease cost | 149 | 239 |
Operating lease cost | ||
Operating lease cost | 3,061 | 2,262 |
Variable lease cost | 851 | 645 |
Total operating lease cost | $ 3,912 | $ 2,907 |
Leases - Summary of Operating L
Leases - Summary of Operating Leases (Details) - USD ($) $ in Thousands | Nov. 30, 2023 | Aug. 31, 2023 |
Leases [Abstract] | ||
Right-of-use assets | $ 107,853 | $ 103,884 |
Lease liabilities – current | 10,457 | 9,225 |
Lease liabilities – non-current | 113,773 | 110,234 |
Total lease liabilities | $ 124,230 | $ 119,459 |
Leases - Summary of Finance Lea
Leases - Summary of Finance Lease Assets - Net (Details) - USD ($) $ in Thousands | Nov. 30, 2023 | Aug. 31, 2023 |
Lessee Lease Description [Line Items] | ||
Property and equipment | $ 144,828 | $ 134,329 |
Accumulated depreciation | (30,482) | (27,902) |
Total property and equipment – net | 114,346 | 106,427 |
Finance Lease Assets | ||
Lessee Lease Description [Line Items] | ||
Property and equipment | 6,247 | 6,247 |
Accumulated depreciation | (4,092) | (3,945) |
Total property and equipment – net | $ 2,155 | $ 2,302 |
Leases - Summary of Finance L_2
Leases - Summary of Finance Leases Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2023 | Aug. 31, 2023 |
Leases [Abstract] | ||
Finance lease – current | $ 52 | $ 70 |
Finance lease – non-current | 22 | 31 |
Total finance lease liabilities | $ 74 | $ 101 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details) | Nov. 30, 2023 | Nov. 30, 2022 |
Weighted Average Remaining Lease Term (Years) | ||
Operating leases | 16 years 1 month 6 days | 16 years |
Finance leases | 1 year 4 months 24 days | 7 months 6 days |
Weighted Average Discount Rate | ||
Operating leases | 7% | 6.60% |
Finance leases | 4.30% | 4.70% |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Disclosures of Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Leases [Abstract] | ||
Operating cash flows paid for operating lease liabilities | $ 2,425 | $ 1,865 |
Operating right-of-use assets obtained in exchange for new operating lease liabilities | $ 4,990 | $ 4,911 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities Net of Lease Receivables (Details) - USD ($) $ in Thousands | Nov. 30, 2023 | Aug. 31, 2023 |
Operating Leases | ||
Remainder of 2024 | $ 4,853 | |
2025 | 9,505 | |
2026 | 11,451 | |
2027 | 11,764 | |
2028 | 11,375 | |
Thereafter | 156,671 | |
Total lease payments | 205,619 | |
Less: imputed interest | (81,389) | |
Present value of lease liabilities | 124,230 | $ 119,459 |
Finance Leases | ||
Remainder of 2024 | 48 | |
2025 | 24 | |
2026 | 4 | |
Total lease payments | 76 | |
Less: imputed interest | (2) | |
Present value of lease liabilities | $ 74 | $ 101 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Kura Japan - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Aug. 31, 2019 | Nov. 30, 2023 | Nov. 30, 2022 | Apr. 10, 2020 | |
Professional Fees, Travel and Other Administrative Expenses | ||||
Related Party Transaction [Line Items] | ||||
Reimbursements by related party | $ 157 | $ 34 | ||
Revolving Credit Facility Agreement | COVID-19 | ||||
Related Party Transaction [Line Items] | ||||
Credit facility maximum borrowing capacity | $ 45,000 | |||
Amended and Restated Exclusive License Agreement | ||||
Related Party Transaction [Line Items] | ||||
Royalty fee of net sales | 0.50% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions Due to and from Affiliates (Details) - Kura Japan - USD ($) $ in Thousands | Nov. 30, 2023 | Aug. 31, 2023 |
Related Party Transaction [Line Items] | ||
Due from affiliate | $ 1 | $ 104 |
Due to affiliate | $ 359 | $ 555 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Reimbursements and Other Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Related Party Transaction [Line Items] | ||
Total related party transactions | $ 45,603 | $ 34,747 |
Kura Japan | ||
Related Party Transaction [Line Items] | ||
Total related party transactions | 946 | 956 |
Expatriate Salaries Expense | Kura Japan | ||
Related Party Transaction [Line Items] | ||
Total related party transactions | 43 | 21 |
Royalty Payments | Kura Japan | ||
Related Party Transaction [Line Items] | ||
Total related party transactions | 258 | 197 |
Travel and Other Administrative Expenses | Kura Japan | ||
Related Party Transaction [Line Items] | ||
Total related party transactions | 5 | |
Purchases of Equipment | Kura Japan | ||
Related Party Transaction [Line Items] | ||
Total related party transactions | $ 640 | $ 738 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity under Stock Incentive Plan (Details) - Stock Incentive Plan | 3 Months Ended |
Nov. 30, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options Outstanding, Number of shares underlying outstanding options, Beginning balance | shares | 653,395 |
Options Outstanding, Number of shares underlying outstanding options, Options granted | shares | 16,360 |
Options Outstanding, Number of shares underlying outstanding options, Options exercised | shares | (7,241) |
Options Outstanding, Number of shares underlying outstanding options, Options cancelled/forfeited | shares | (3,816) |
Options Outstanding, Number of shares underlying outstanding options, Ending balance | shares | 658,698 |
Options Outstanding, Weighted Average Exercise Price Per Share, Beginning balance | $ / shares | $ 34.25 |
Options Outstanding, Weighted Average Exercise Price Per Share, Options granted | $ / shares | 72.25 |
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercised | $ / shares | 15.15 |
Options Outstanding, Weighted Average Exercise Price Per Share, Options canceled/forfeited | $ / shares | 56.75 |
Options Outstanding, Weighted Average Exercise Price Per Share, Ending balance | $ / shares | $ 35.27 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Restricted Stock Unit (RSU) Activity Under Stock Incentive Plan (Details) - Stock Incentive Plan - Restricted Stock Units | 3 Months Ended |
Nov. 30, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, Beginning balance | shares | 31,105 |
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, RSUs vested | shares | (1,359) |
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, RSUs cancelled/forfeited | shares | (351) |
RSUs Outstanding, Number of Shares Underlying Outstanding RSUs, Ending balance | shares | 29,395 |
Weighted average exercise price per share, RSUs outstanding Beginning | $ / shares | $ 69.88 |
Weighted average exercise price per share, RSUs vested | $ / shares | 73.58 |
Weighted average exercise price per share, RSUs cancelled/forfeited | $ / shares | 62.14 |
Weighted average exercise price per share, RSUs outstanding Endining | $ / shares | $ 69.8 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Stock Based Compensation Recognized under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | $ 1,006 | $ 650 |
Restaurant-level Stock Based Compensation Included In Other Costs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | 147 | 94 |
Corporate-level Stock Based Compensation Included In General and Administrative Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | 887 | $ 556 |
Amount Capitalized to Property and Equipment - net | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | $ (28) |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Nov. 30, 2023 | Aug. 31, 2023 | Apr. 10, 2020 | |
Debt Instrument [Line Items] | |||
Revolving credit line interest rate | 130% | ||
Revolving Credit Facility Agreement | |||
Debt Instrument [Line Items] | |||
Outstanding balance | $ 0 | ||
Remaining availability under credit agreement | $ 45,000,000 | ||
Revolving Credit Facility Agreement | Kura Japan | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | $ 45,000,000 |
Income (Loss) Per Share - Compu
Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Earnings Per Share Diluted [Line Items] | ||
Weighted average common shares outstanding – basic | 11,150 | 9,789 |
Diluted | 11,150 | 9,789 |
Basic | $ (0.18) | $ (0.21) |
Diluted | $ (0.18) | $ (0.21) |
Class A | ||
Earnings Per Share Diluted [Line Items] | ||
Net income (loss) attributable to common stockholders | $ (1,863) | $ (1,875) |
Weighted average common shares outstanding – basic | 10,150 | 8,789 |
Diluted | 10,150 | 8,789 |
Basic | $ (0.18) | $ (0.21) |
Diluted | $ (0.18) | $ (0.21) |
Class B | ||
Earnings Per Share Diluted [Line Items] | ||
Net income (loss) attributable to common stockholders | $ (184) | $ (213) |
Weighted average common shares outstanding – basic | 1,000 | 1,000 |
Diluted | 1,000 | 1,000 |
Basic | $ (0.18) | $ (0.21) |
Diluted | $ (0.18) | $ (0.21) |
Income (Loss) Per Share - Addit
Income (Loss) Per Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Earnings Per Share [Line Items] | ||
Shares of common stock subject to outstanding employee stock options that were excluded from the calculation of diluted income (loss) per share | 688 | 708 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended |
Dec. 31, 2022 | Nov. 30, 2023 | |
Loss Contingencies [Line Items] | ||
Settlement amount | $ 1,750 | |
Amount deposited into an account controlled by a settlement administrator | $ 1,780 | |
General and Administrative Expenses | ||
Loss Contingencies [Line Items] | ||
Accrued liability | 1,780 | |
Payroll taxes | $ 30 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 38 | $ 10 |
Federal statutory tax rate | 21% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value Recurring $ in Thousands | Nov. 30, 2023 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total assets at fair value | $ 7,046 |
Certificates of Deposit | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total assets at fair value | 4,998 |
Treasury Bills | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total assets at fair value | 2,048 |
Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total assets at fair value | 2,048 |
Level 1 | Treasury Bills | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total assets at fair value | 2,048 |
Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total assets at fair value | 4,998 |
Level 2 | Certificates of Deposit | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total assets at fair value | $ 4,998 |