KRUS - Earnings call transcript Q2 2024

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Operator

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Kura Sushi USA, Inc. Fiscal Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that this call is being recorded.

On the call today, we have Hajime Jimmy Uba, President and Chief Executive Officer; Jeff Uttz, Chief Financial Officer; and Benjamin Porten, SVP, Investor Relations and System Development. And now I would like to turn the call over to Mr. Porten.

Benjamin Porten

can afternoon, should thank fiscal section. have XXXX we release. the Good joining. By all second to A operator. www.kurasushi.com submitted included earnings everyone at in earnings now, access It also copy you, of everyone, Investor release you and for quarter in the Thank the found has Relations been be SEC. to X-K our the

risks The information the considered be condition. Also future earnings discuss in the our operating turn will we the measures, impact that release. With today this cause accordance we of our substitute XXXX. our to to part that reconciliations SEC way, will them. These all should are non-GAAP isolation formal nor discussion our our of would are I to and of remarks, be for financial to over to therefore, also actual put and like financial call, defined our today's that the guarantees Reform evaluating expect. discussion in statements forward-looking of as performance. out differ in you a subject Before with Securities Jimmy. for could we begin to risks in measures results from materially and not We we GAAP, certain under a results include prepared believe remind need future reliance you to during as useful which available not should comparable I These call results statements to Litigation refer everyone performance, what are on GAAP not of Private detailed Act presentation forward-looking additional more and could of the statements numerous filings that undue uncertainties of

Hajime Uba

joining greater but know Jeff our record I'm of strength these for results. go Thanks, into you progress who us thank pleased as let earnings out for ongoing [indiscernible] release, later business will a fiscal you everyone Ben, very sure year. of the our to today. we you to and through those I'm

is call by of have the dollars thanking X%, them more and quarter ] of introduced items this business. We've million, the sales by acknowledging unprecedented of call for them. in our over guidance It in our us [ follow well growth fiscal begin EBITDA growth to efforts release, to year was X.X% second profit XXX of XX track putting for guidance We to announced fiscal XX I'm being with growth and the us each extremely and quarter, projects quarter and a of our [indiscernible] Delivered X.X%. the acceleration $XX.X first everyone's our wanted teams openings able so big creating operational much to profit for [ further we [ demonstrates incredible were adjusted our comparable year. year-over-year grew today. Total sales details next [indiscernible] representing our team have to rated members a challenge new ] when prior in this of guidance our the confidence basis date, our implementing following and opened ] of the announced quarter risen meaningful guidance. year of than for for new target on restaurants unit We proud all XX points XX%. by is

in that impacted these have pleased of results that spite severe achieved we We weather entire are industry. very the the

our was index X.X%, clear XXX love as traffic our It's box as ] [indiscernible] X,XXX our second Kura quarter, that of to the negative spread we points. dining them. was basis During industry, a Compared black love outperformance much fiscal points. industry casual [ guest basis profit

with offset the is reminder, first pricing pricing tailwinds which the only X% and current of January, of X%, for X% during with on off paid remains quarter. This to in the of January the that coming us. track a experience in and that to very pleased kind As see we week are Kura this effective We December, clearly of continuing keeps specific has we guest [indiscernible]. guests provide through quarter back been for a

was we the XX.X% During continued compared Labor, to be costs percentage commodity quarter, second up of to run sales. year other prior quarter. the XX.X% in [indiscernible], ] them [ of as sales XX.X%

same impacted to industry. higher rest to preopening-related of the we the severe meaningfully addition the due that In openings, accelerated cost, experienced restaurant weather

leverage always expect that confident and global are in structural we've same labor increase seasonal in that this costs the seen. labor in nature We is not

are our of previously [ to I XX.X% We G&A as now a later. last for sales G&A of XX.X%. compared profitability, bring to pillars we even everything as greater strategic leverage to as to year to overall able result, achieve percentage [indiscernible]. And year's expect which one discuss Jeff a will the we As ] down mentioned, key aggressively drive were executing costs corporate on

quarter second we Kansas more restaurant X Our Florida. great tailwinds Euless support end, Orlando, have we team in opened In new we and further benefit infill markets referral future as quarter, and ] Ohio; expect the and City, efficiencies and Webster headcount, management. Texas. restaurants: Columbus, in center Illinois; from we Subsequent a in managing regional [ job incremental years opened fiscal done Missouri; the Skokie, in to in one

established the currently to international many construction. In X states years brand of operations as as also Sushi's as what restaurants true today. the the proud in I'm our during U.S. did under Kura restaurants We with fiscal of become XX footprint alone, for have year-to-date units first opened in our X brands incredibly a us we have have we've and

our as responsible than also are program. prior for performance our U.S. are approximately sales of less with with new pleased We X/X quarter our the members program. to now rewards of the compared

rewards Our recent in XX% X.Xx members ticket, average, after per factoring visit discounts more spend month. even analysis on and per

able that my I extremely was to is Dragon that about. partner IP several And Ball. share IT it's our our next be collaboration the to last calls, up For finally I've excited hinted pleasure

believe think pipeline non-American Ball looking Dragon have our results. I that the to property might exciting I of the we've well. with. forward truly seeing this most a year call this had, regarding our familiar is great on I'm tech be this ever lot We is first and everybody as news partnership already

have expectations completed operations. be We of our have they and our first will our in how ] test Japan, robotic early confirmed meaningful for [ dishwasher in-restaurant our results of

While [indiscernible] I'm we have pleased time with our for implementation, momentum. [indiscernible] don't further very lines

are to parallel for ]. Our front. [indiscernible]. One ] that rather as just guests than [indiscernible] well, is prices a in The new smoothly and be through happy tech function table-side for developing teaser to mobile [ implementation thing on ability the to ordering mobile ordering able we announce [ going more I'm [indiscernible] table-side

a on employee our [indiscernible]. new it sushi ] and through rice completely We currently trajectory We technology [ plates [indiscernible] the we from balls the takes are the that getting certified each put have to battery-tested We call [indiscernible]. U.S. then for our dine-in to them

can on During half on the shift, X have of employees person spending them ground. their and [indiscernible] the to peak placing next sushi handling to X the hours, we plates rice balls

here So is obvious. the upside operational

to this to Our for sushi our that summer able existing retrofit the ] to bring actually some able expectation be it. we'll [ and of restaurants testing accommodate is that we'll be driver

progress last a As in quarter. this you of can see, we've made lot

expect able exclusive we view DoorDash, same announce secure Lastly, beneficial to program. are a in-store very our dining, the the prompting to able sales to and of [indiscernible] [indiscernible] as that were favorable with and In mini I'm times, we to the margins. keep partnership these be our we pleased out prices to DoorDash

with our our providing like restaurants members far, can I'm would department of to Every and with quantitative in pleased forward looking We our are remarkable to and DoorDash our future support at very quarter. this a point partnership all so achievement thank color goals. I team again center. to

already restaurants opened. G&A looking our are outperformance basis incredible of The of at leverage some restaurants. We traffic XX points. we've XXX that

Our over everyone. Jeff, IP for to an discuss successful technology progress liquidity. rapid a and rollout you, new our of quarter. financial to pipeline program or success results Thank It's and now the in I'll DoorDash. you amazing and the been turn it collaboration of device

Jeff Uttz

Jimmy. Thanks,

For sales X.X% period. our in prior as period comparable regional the the sales year with prior were sales the compared to and West Coast second in restaurant X%, Southwest in to year million our of comps compared quarter, $XX.X positive total Comparable flat performance was market. $XX.X million market

percentage diluted X%. Depreciation a costs due preopening supply now and year due chain well loss associated a of the prior XX.X% an year associated with largely of to that prior in was general $X.X marketing $X.X by and prior amortization depreciation and XX.X% a compared year $XX,XXX of expenses new was XX.X% or compared XX.X% in a quarter. repairs mainly company and to were to in quarters, costs prior $X the greater incremental to $X the was other prior quarter, in tax greater compared million to of a quarter, operating million per compared prior percentage in was to costs prior million openings the a with and year of due the inflation. General operating to million profit increased replaced EBITDA a store to additional the to $XX,XXX costs. XX.X% due greater year percentage incremental travel quarter. Restaurant-level units increases. Occupancy compared were cost X%, and year and compared construction X.X% number prior initiatives. Labor compared compared training and being largely the beverage the as with due remodels. Other adverse compared increased to sales and sales units percentage share as or loss by conditions, as recruiting was the of quarter. Adjusted administrative Turning of Food in costs $X.XX the our costs in the a as offset X.X% of general sales accelerated $X.XX assets sales costs and as year and which unit compared diluted to of year was of new million related expenses the as per quarter. newly-opened as increased year related sales in a openings. Operating XX.X% costs well as loss to were due associated to maintenance increase million prior a increase planned leverage, $X.X to This openings sales was to expenses largely to as decreased loss compared as in year sales number wage store as quarter. Net and as pricing an prior year quarter, costs to largely public depreciation were quarter share to XX.X% percentage XX.X% partially unit with percentage associated to amortization. Income weather openings and sales of and prior quarter in to XX.X% XX.X% costs, net of driven to under percentage expense $X

open XX to capital units with of At expect Now our end per like we year percentage like turning XX% for debt. And now expect the update to the I'd cash that, had expenses quarter, lastly, call with liquidity. back million. be XXXX. XX cash and a XX.X%. And sales now between and to following in expenditures We turn we We $X.X to the our between to average be between approximately equivalents net fiscal expect sales unit and the I'd cash and million new $XXX to Jimmy. G&A now over And to million and as $XX.X of no $XXX of fiscal total second guidance and million.

Hajime Uba

you, This Thank concludes remarks. prepared our Jeff.

We you Operator, questions. happy for line the now have. please questions any are to answer open

in translated is during Japanese As before Q&A your you my Thank a may for to response reminder, attention. answer session, the English. I

Operator

Instructions] line will come [Operator of Bernstein Our Barclays. with first from Jeffrey the question

Jeffrey Bernstein

Great. A questions. of couple

X%. The the think looking at I first comp, said one, you just

maybe if of what the especially wondering March the into bit it in in through the does consumer. industry and quarter lower-income a April, March, is seen of seem about Just talking about the a the talk little trends in going you slowdown you've like can month perhaps

perspective your what get the So trends you've environment seen and just to months? in recent consumer on trying

Hajime Uba

Language]. [Foreign Sure.

Benjamin Porten

generally, dining monthly really of obviously, that on [indiscernible] comps, But In remodels, [indiscernible] which X,XXX feel of saw. well. and your promotion the between cadence very traffic in weather One our we're we X.X% terms everybody January especially with by saw really did, think the [Interpreted] we [indiscernible] basis Some the we inclement thing we [indiscernible] slow pressure that tremendously. that casual tremendous the ourselves points have a for increased else

Hajime Uba

Language] [Foreign

Benjamin Porten

[Interpreted] well. we're [indiscernible] very incredibly April pleased and but just as with with how happy performed we're we're [indiscernible],

momentum positive that that And to seen it's we're we've so as really QX. see exited been great It's maintaining we've great.

Jeffrey Bernstein

the a learnings you. into newest And of terms you're markets standpoint, for on going that's a or from whether reception surprises big negative? such from and then consumer, No, in opportunity in positive geography the Just any your your encouraging. separately new curious just markets

Hajime Uba

[Foreign Language]

Benjamin Porten

trends, [Interpreted] the markets. new In them of same terms seen hit. one terms of trends of in has been we've geographic a Every before as single

that's So in and other this so we've it, and really no surprises, words, we've expected got nice.

terms really just weather that In performance, the was. be would with geographic differences in of associated wherever

For us, can the we've have of so a in rains California when and lot West comps. in California, Coast places that on an got impact it

Jeffrey Bernstein

labor aren't other on were being necessarily mean because above pressured opening. Does and unit was the unusual. Street expectations on the sounds was that accelerated which But like get relative to structural. the line, drove the margin. I both some line some those Margin the pressure at least costs that labor other It feeling of well expectation,

as fiscal the about just half the the margin. thoughts maybe there what the level margin your we half of wondering, what greatest as greatest about second restaurant and uncertainty back the are So think the restaurant year you for visibility of [indiscernible] versus think 'XX, has of

Hajime Uba

[Foreign Language]

Benjamin Porten

of confident the restaurant the half the operating very for We're level about profit margins [Interpreted] year. second

As you for the fiscal year. this opened the bulk know, we've of already units

headwinds behind us. And related so preopening largely are those labor

The see sales to other that same leverage every we've factor that seen we're year. is seasonality, the same the going

not that promotions about. also be in of have we are number We the a excited more that could pipeline

have that's promotion Jimmy biggest ever. we've literally, Ball. to there. proud super, are We the mentioned, As super and pleased I think got that Jimmy and Dragon

And things profit a to got got are for operating even we've we've tailwinds. forward of stuff, restaurant DoorDash. lot margin. so look And lot we've a tech besides level that, There to the of got

Hajime Uba

Language] [Foreign

Benjamin Porten

over you [indiscernible] the hub not [Interpreted] open all typically would tailwind for profitable. be for the restaurants. back capacity the at restaurant it's month of And we're They're first operating that those other the year. the the half a And full

So Jeff, really And yes, excited. we're too.

Jeff Uttz

are that What another on proud bps EBITDA want hit mean, the XX% which I'll G&A. we we reduction. we're out from all in XXXX to as the with talked really excited about adjusted the add we also we And excited if we XXXX. margins, pipeline, things basis of [indiscernible], the getting really new about to leverage G&A is, level point have restaurant these on the total very [indiscernible] and guidance, midpoint, in I went And XX.X% that's the earning very and XX points about. something

Operator

the from of Citigroup. Jon comes question next line Our Tower with

Jon Tower

but there's the period. territory. consumers the in comps here, And their mix Great. but awesome, not price the past. managing Maybe that with great of you I behind would indicate to see differently I'm know guys the seem little into than curious check history starting a perhaps are and that, specifically to that's It's implications bit negative a moved growth off that during ton traffic years

just the fewer off and to pulling or -- less belts? tablets people of ordering the of showing of it's more less in manifesting? that how plates? the your getting off curious Just is Are off how see they pulling So up business. Are

Hajime Uba

Language] [Foreign

Benjamin Porten

terms stayed of In plates person at consumption has mix, [Interpreted] year-over-year. flat per plate our X.X

And so people really to venue out The would difference there. be orders delta drinks trading no from water. inside soft or

what if from has breakdown ICR has our mix, we digits mix January. single that of negative we're helped. terms as can as from I in of But December, actually And to mentioned you digits. from pleased. back traffic, caught don't very negative know -- strength into high you we're see comp mid-single In at gone

closer growth. in where exceptionally is to the pressure, opportunities been number offset mentioned showing we've negative expect digits. We're in last namely traffic a able their instead ] the having reach single [indiscernible] the being their terms their People one mix We use smartphones can have to just And of being X% so of again, conveyor that, before. the we're that to couple the relative But earn a high that buddies strength for ordering, things do quarters sitting very side for to quarter or order biggest is been able that proud have recent we menu with of If their guests have bigger prizes incremental mix X be of in as side to which our of phones to by over traffic. is proud, thing greater stage ordering the able consideration menu. menu consumer there [ items guests the to never that from just will now tablet. belt

we've a to addition fact of [indiscernible]. in to already got things is mix to so get that And look forward the lot

Jon Tower

appreciate I this margin DoorDash to that you've Jimmy, going it. partnership correctly. prices relative that keeping you if color. little transactions think, in-store And idea the a that that understood the I same, around to on got. mentioned Got jumping be neutral while bit Maybe the had is the I

are getting guys to just So just delivery along consumers how effectively in curious the form that. higher I'm fees. manage this you of passed

Jeff Uttz

where is accretive. expectation And be along one it's we're -- of about that margin of actually passing our excited to neutral the that the DoorDash. going terms with in partnership really we're if to get to a cost So reasons guest margin We're guests, we you DoorDash you DashPass We're partnering can over a membership, $X. DashPass, because so have better experience ever before, is offer can on it delivery with before. for costs free, now

free to entertaining to to what for to really the these able arrive with down so we And prices be was our we really And the with restaurants secure mentioned to offer the got no-brainer and came that terms guests is forward as it deal be able go in remarks, accretive, this delivery prepared were our able same this. really triggered we to a something were these give Jimmy market we and this decision wasn't as at that fact terms been DoorDash. in terms, if hadn't us. But the

Jon Tower

Got it.

maybe terms curious in in internal I'm but it's Because mixed separately, how of days expectations I it's -- either how it, maybe terms busy within was your it your are related what managing kitchens for are In super that the what And already. were this you're already obviously, mean, early store? you deployed or of, in stores then but seeing are?

of You've place? these traffic you that through. lot orders delivery got How the versus in-store are handling a transactions are taking running

Jeff Uttz

done has to of operations. team Yes. into The orders. throttle We're in it terms amazing job and their operations an integrating able implementing

and going we are so the capacity, busy prioritize at already our kitchen's are And if already guests restaurants. we're that always in to our

we slowed down our or so And issue. hasn't really down [indiscernible] an shut just been and orders, it

Operator

of Our Smith Capital. comes next question Mark with the Lake line from Street

Mark Smith

I I'm then just labor pure much versus more here minimum here. faster in you that any break impact seeing And expense with labor openings the margins restaurants down on to you bit wanted California in of kind curious, that just off, First also there. with the of to Can on labor all dig guys little inflation? hire at are wage the -- was a how higher due up

Hajime Uba

Language] [Foreign

Benjamin Porten

if can of prior higher sales, you of for at that bulk see are $XXX,XXX the you our that Q, year's look costs that's And So the in which labor. [Interpreted] of $XXX,XXX our is about the that QX. X.X% $XXX,XXX, QX preopening preopening bulk than costs

So impact did. can that how immediately see accelerated labor of just the you preopening big an

of is again, what the really, inflation, seasonality the of saw mid-single-digit really and we in year, labor compounded that, said to change in we it's by margins labor of in by enter we we've the concerns which lever the driven X preopening very terms expect with [ terms our past QX. that in ] In is quarters. The labor full put have up normal markets. we spite recurring that pleased across We're

we [indiscernible] due a elevated control, mentioned, we of were think the we're And restaurants. or that we able -- were to either is lot we that things [indiscernible] from As the that labor our we've with, pleased tailwinds. have know of which out whether last

pretty we're yes, so And happy.

Hajime Uba

[Foreign Language]

Benjamin Porten

have or A I'm In under [Interpreted] you're legislation we're umbrella sure casual maintain eligible whether restaurants ], that or other lot umbrella. competitive house dining tips. of restaurants companies been of not of as the by regardless the as that back the generally FAST aware, not not impacted directly -- it the in terms employees [ under need Act are to of our this stands, we're wages. In they're California, for

just for So are restaurants see we don't they're going competitive less to more a they're already making where work scenario to very wages. do heavily-automated pay. We

real or And spend so this California [ ] time wage a factor a for really of lot in been all hasn't California. live us. in We

sometimes -- always [indiscernible]. restaurant in we've we double single sometimes the So up, as see [indiscernible] digits, go seen high business that price we

else a the greater an an audience. many price an QSR the the advantage. expensive it's is and the that market. closer more people, So meaningful new we closer about is really current which We is from are, experience luxury, and opportunity price grow closer think pricing so to fact brand. that when this we're seems point We they strategic just to affordable and where think Kura our keeping guests really think especially than on When gets ever is we opportunity as of than tons this our to and everything

Jeff Uttz

increase go is from a almost chain came thought Kura they a can bit the more Kura unnamed, one that. that maybe even And would delivery to for [indiscernible], tiny said we And of It [indiscernible] Act always and value FAST that before things Sushi, Sushi. or Mark, or a about for you yesterday, [indiscernible] a fees to will tell in, $XX. And XXXX be it you ordered proposition I had when was [indiscernible] we thought sushi then was about that salad the the just but than soda anything. we've I

in were act. to at true, early people be our least to new the how this seems what that on proposition of do increases on April with and value going pricing stages guess X our So proven

Mark Smith

job the a X do getting Are get just guidance XX? openings? With little construction Excellent. looking by is at conservative did on being of restaurants opening the Other can XX X you Or the me those the opened to half. these open the in think you a question you just cadence here, year? under for of good first you here guys end

Hajime Uba

[Foreign Language]

Benjamin Porten

cadence, just the of on broke of we them. terms In ground one [Interpreted]

So between it's expectation, about XX to we QX QX. as units, expect even terms life guidance. and early is on of units is construction cycle. We reasonable which why an we XX a The gave in very the remaining split think that

Operator

Our next question of comes Matt William from Curtis line with the Blair.

Matthew Curtis

guys You a rewards promotion ran your to members.

in anything I you're two December, wondering what just end think to up us to whether with So rates I regularly coupon going And valid run you XX% delivering in or them January. were visits a how guess, give we about much was benefit you if that redemption you could tell traffic forward. planning like then, related for this the I like?

Hajime Uba

Language] [Foreign

Benjamin Porten

[Interpreted] ] still we deep [ comps of or pleased. Obviously, we are weather, there too which been But In would January, Overall, the maybe really than we quarter of enough. X.X% had pleased. without some coupon have have We terms noise in getting from X%. for traffic very otherwise. less with campaign, traffic the resulted were

So yes, we view this... overall,

Matthew Curtis

weather Got Okay. us Do penalty quarter? the was telling the you it. for what mind

Benjamin Porten

can you I'm sorry, that? repeat

Matthew Curtis

telling Sorry, was the the quarter? would weather you mind for penalty what us

Hajime Uba

[Foreign Language]

Benjamin Porten

was days East of largely Midwest days. January X But about Texas, we've was February, X the yes, during were and California each Coast. For heavily-impacted. January, that February. some very about and [Interpreted] operating it hit both the

Matthew Curtis

this that's coming promotion Okay. about you Ball Got the I it. guess. spring, And being then talked Dragon

promotions I how lapping what year? X. x frame March us over Spy you're remind last were in place think Could you that's Family have and You this they been successful since time

Hajime Uba

Language] [Foreign

Benjamin Porten

with [Interpreted] a very So Spy campaign. as we was was small We earlier, part successful really x we're ] Mark's think [ pleased discussed in results. Family the

I Kaisen believe Jujutsu for year and terms of May. been last was In April we've lapping, what it

super So so a mean, pleased Xst. is hard to is predict but I huge. really, super, to the May huge. the It's going we are. Dragon be again, for not just are it's strongest, way Ball that It's really the but strong pretty we be, impact [indiscernible] to but one, excited what we're very

Operator

Our Instructions] [indiscernible] question of the Group. [Operator from CJ Capital comes with next line Craig-Hallum

Unknown Analyst

costs It's of touch if CJ for kind on Hamblin. give to for to see weather. color, quantify little a penalty wanted you and time the labor just Jeremy able I were on more from adverse more

Hajime Uba

[Foreign Language]

Benjamin Porten

impact [Interpreted] had earlier, about weather prior as to the incremental to costs labor. with weather. the are as about real had in $XXX,XXX time change costs mentioned those schedule deal So and we The X in you can't preopening compared days year. we majority And we of then of

So yes, that be the would impact.

So impacted in X there. days but full payroll

Unknown Analyst

then And DoorDash favorable I seeing line you to know on you item? negotiate Okay. really other being expense the that that's item incremental on terms. any cost added on P&L, you Are deal the said line

Jeff Uttz

No. DoorDash launched rolling in February on a basis.

impacting our And and so the would cost worst X biggest be DoorDash actually, the be is margin it labor case, our neutral in meaningful. lines the was line. neutral. preopening by are also margin expectation P&L, And But expect in that our the either market-accretive, the other QX not or costs impact super impacted we too costs, are do to [ other case ]

openings. openings, a other whenever So cost other costs there's those there's store when that moving around you with associated greater line at look number for travel of people and

cost is as other line the well. So impacted

Unknown Analyst

mind. And Right. if quick one, don't one more then you Okay.

on a just new on you how if restaurant, Sorry it you point? time typical touched open break that once ground it. take from long But to the -- does what's

Hajime Uba

[Foreign Language]

Benjamin Porten

typically about It's months. [Interpreted] X

Hajime Uba

Language] [Foreign

Benjamin Porten

of we've the going at tighten little bit smoother. [Interpreted] The been quarters, a last inspections of construction a it's historically. about seen that end months So couple with little X

months. is months, but And so base X to closer months and X expectation been our X it's

Operator

Kelly from of Our next ROTH. George line the question comes with

George Kelly

deals and monetizing ability you And seen is -- so also So you've But there plan? your of guess brands. be big these the that, in strategy an changed I guys you understand if you've around aggressive history about you Dragon first before, of that's what is And big these done I if the your basically, of big partnership. Clearly, are question seem curious monetization one at I'm Ball. partnerships is, now. like all? to super kind excited that like about are sort many given with now more

Benjamin Porten

Yes.

this always on evolving. is strategy our So

As we that was you we certain we're -- pleased those at is of people Family mentioned, saw to just April I got with you trying our t-shirts. where campaign threshold, the so that t-shirts. Kura with spending and of far did Spy get one a cross at I x reasons lots was today lunch actually giveaway so if I

And we just realized so opportunity working. This an how -- meaningful clearly, it's is is.

is about. passionate the people this are a very door, driver you brands into As said, meaningful and in of that getting terms very these people are

things in enabled so part have them the by the capabilities I of just or of And yet a we the rewards lot pipeline. of them program. new discuss can't

But them we one are of engage ideas brands are -- always that of about new guests the things coming ways. have Some separate that. that into mean most ways Kura. our the fun in to looking for new we're from completely are I new

we're looking So at ways new that. to always leverage

George Kelly

you've that number the good to on guess, all second raising the it out again, to of then I is are up then And couple growth Understood. of Okay. is, the Is And year, put are question any at for the this times guidance that growth. a XX% explain part about assume second past. unit those target year. Is question this that questions. now. And that you my midpoint beyond Or factors still that other expected taking in a use? that you look openings out your if there it fair permitting?

Hajime Uba

Language] [Foreign

Benjamin Porten

expect achieved past be would what in forward in do. XX% That's XX%. That's is been typically to of coming closer we've what a said to floor, we've we've we what doing. and terms In growth, what [Interpreted] the

year, has that and challenge keep meaning delivering organization than that Our to capable year after excited that. it's more a on demonstrated we're

Hajime Uba

Language] [Foreign

Benjamin Porten

just think fair we really But we've under XX beyond opportunity -- to that looking We stores, XX bet. to in XX is at there's than year, Given and that's with X about. have is historical terms permitting, potential of construction, how that the Obviously, less at goes. a go construction a months feel XX that. XX opened we to good this patterns [Interpreted] already X point, where

Jeff Uttz

helped to compared your bit really and always it strong. And [indiscernible] the year, our had the this that drove year has piece that a year management about get think the a little last Permitting before. pipeline of other also, really you to obviously acceleration easier I but point, is But while question the did that. George, been

the get things recruiting. committed company return in areas to we have where candidates was company and back going able to year of -- invested to as external And the our to like into to that that I I operations. if come and making heavily recruiting recruiting there to And that midpoint the came construction very basis management out in back the we're even are XX hire better. candidates ready pipeline of things and a still couldn't G&A, one with of when sure can I hit we get leverage still well. reinvestment because in this into and those we've get we said, and the point be we was good that, we'll in internal One reinvest And an like

open restaurants things now So faster us, the helping working we than in formula of those the is get terms model imagined. in right

Operator

end the And We question-and-answer that, today's will of with conclude this teleconference. have session. reached our

may You this . [Portions call.] at are Thank your for were your marked transcript of live time. on lines this interpreter an participation. [Interpreted] that you spoken present disconnect by the

Kura Sushi USA (KRUS) 4 Apr 242024 Q2 Earnings call transcript