KRUS - Earnings call transcript Q4 2024

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Operator

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Kura Sushi USA, Inc. Fourth Quarter 2024 Earnings 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 I would now like to turn the call over to Mr. Porten.

Benjamin Porten

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

risks earnings considered call our the and performance. release. With additional in a Jimmy. turn the be can that condition. reconciliations future way, will today operating on we call, financial we in impact our that that our SEC Litigation you isolation of all like results are cause of presentation evaluating begin discussion need remarks, include substitute certain to also our part defined statements to of not financial GAAP, non-GAAP actual are today's numerous as formal discussion to XXXX. Reform during These expect. Securities in our useful everyone which we of differ you in a discuss that Before forward-looking for or should we out not to reliance subject from materially Also prepared accordance under to be our measures with We and performance, statements I future measures, could as information results not believe for should to results The therefore, this put will of Private refer statements forward-looking and could what are them. These remind available the detailed comparable I'd over GAAP of guarantees more risks undue filings to and uncertainties of the Act

Hajime Uba

negative today. quarter, to new that call the fourth company meaningfully I'm year that I'm is pleased fiscal the we unexpected compared by year improved decline restaurant-level The and fiscal Thanks, representing call in was thank an year was of us the to fiscal XX%. spite the comps rapid in we to half above that were high and the the resulting cost-saving of for throughout over start. response find share year X.X% our outperformed new beginning and negative X.X%. off during last by comps. members positive sales comps able the of we maintain the single-digit very possible you profit back to to to efficiencies opportunities. Total report of earnings for year, has sales in of fiscal negative end the of pleased during Ben, as of expectations sales the This the full operating shared joining performance $XX margins to made in sales and everyone shared to the pressures quarter a strong earnings comparable million, prior April the expectations our significantly team quarter course X.X% fourth full

possible the sales was XX.X% to increase due sales inflation Our basis prior percentage by This improvement quarter compared also compared lowering to XX.X%, improving fourth as improvement as cost. operating prior basis deleverage. point wage cost representing as goods the percentage of XX.X% XXX made was of deleverage. year quality for due XX.X%, the over of sales the prior year's while sales XXX margin to was representing sold of was points profit and ingredients as year. a of the an a Labor a to Restaurant-level

it but currently Washington; Beaverton, Tacoma, have Bakersfield, New We some fiscal unit quarter bears X in just Jersey; California. a Cherry X openings opened front, development Subsequent that Hill, and Lake during York Grove, these the during to units opened under we XX Rockville, On new Maryland; we year. the units, Oregon; have X of mentioning total ground. the broken have for fourth construction, end, New new new unit quarter of units

While XXXX, remaining the construction, restaurants, not we new expect are satisfied opening be with year we and will in progress that the X for of the especially that those far of yet QX. QX restaurants opening so started backloaded fiscal

State, disappointed. we opened unit you our the Beaverton, excited Oregon. many were the Bellevue not always successful I'm of potential Pacific As in of the we that Northwest share being know, pleased performer since opening. in been Pacific most market. This been unit year, With about our has its strongest second massive our finally have with extremely to Washington Northwest we

has unit new our opened opening. Tacoma strong we performer in Washington. very Tacoma, Beaverton, been Following since its

still have exceeded early in long-term of Northwest bullish very and expectations, to that Pacific market. see about it's days, units our happy the the potential I'm very new While high this I'm already the

The Turning year. new our and labor to rollout the scheduled, porting and the Japan's September proceeding Kura early in date completed in results delivered is self-seating to streamlining efforts initiatives. opportunities the cost. expected improvements full We later of of as representing system for further back-of-house reservation efficiencies have labor to

diversified the so we IP to have hit our that levers marketing collaborations. We have also more efforts pull beyond

number to discerning with our broad-based of campaigns. be more IP and quality going collaborations of brands appeal prioritizing partnering the are over going We forward, the

cost national brand be and being as footprint building grow into Our to equity than also IP quality authenticity showcase key our strategy to long-term our more collaborations. efficient while rolling our unbeatable will we

Florida This is environment quarter, the a impairment of sales to million. charge challenging took Aventura, we due our During fourth an at $X.X location. charge

different these environment. place the we serve been for than fully macro we efforts implemented operate longer-term we and headwinds call. and required it's improve impairment we that earnings well in clear The believe has a as will charge new of fully and in very cost-saving fiscal take that could several potential the continue implement are The started last a strong, restaurant While initiatives preparation us this began changes we operational enter are normalized results. by rules, year accounting quarter this will the to have will to we this

date exceeded that openings huge and market have Northwest expectations for a the unit untapped confirm us. is to new Our Pacific

Pacific to our the white In DMAs, we to United in as we even indicating for thrive highly the largest opportunity. upcoming serve greater States addition that Northwest, are the to markets openings success are the anticipating beyond smaller in ability space will proof-of-concept our in see continuing

turn opportunity Bakersfield Fiscal While next only DMAs. has grateful for of a you financial to few demonstrate been level XXXX -- has optimistic positioned for now well opening results liquidity. strength us and us over in of discuss incredibly is Kura who to Sushi's have for team the been the thrive potential, our it and days, the members to the has ability our open work smaller its an so fiscal I year. Jeff, I'll our am by to excellent year about new

Jeff Uttz

Jimmy. you, Thank

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

costs openings or year compared deleverage quarter. pricing prior expense. prior the a to EBITDA costs. quarter. Depreciation $X.X prior per sales compared to and percentage to chain $X.XX the Restaurant-level related quarter. deleverage, to tax the year XX.X% and expense expenses to associated quarter's XX.X% income of operating year were due now increased utilities, expenses prior share compared due X.X% year $X.X XX.X% share increased prior of as replaced year Adjusted in sales to leverage Turning compared XX.X% XX.X% in quarter, Food per units prior largely expense the to was a being and other operating loss costs as million costs sales beverage as a Labor Operating in $X.X supply fiscal and XX full sales of assets as respectively, compared due in supplies. percentage XXXX a Adjusted unit planned was were was percentage licenses of $X.XX sales sales construction. Income basis sales compared quarter, driven the greater year year and prior $XXX,XXX or in to prior quarter's a million compared and of in $X.X litigation compared remodels. Other by of and increased prior expense the sales to expenses quarter of percentage million per the XX.X% per wage as X.X%. to and excluding General to share and well representing higher quarter $X largely a quarter. and adjusted of or administrative as the fourth year as General in percentage the and as million in Occupancy of incremental due of X.X% under quarter, net over labor share to $X.XX and to the delivery $XX,XXX XX.X% a operating points. as profit of the year and quarter. prior in due compared percentage to to or number $X.XX year XX.X% administrative XX.X%, initiatives. X% XX.X% a negative a accelerated sales, sales million were depreciation sales percentage deleverage million the compared as compared largely $X.X the mainly in software a of increases. fiscal income income year to year XX.X% year increase This Net to with the year was full loss net compared to million was XX.X% income $X.X to as amortization net prior $X.X to and was million fees, the were to expense prior the for to was of quarter. due litigation percentage litigation costs of costs related

I'd liquidity. cash and now to the in fiscal following of for we At million then end guidance year cash fiscal $XX quarter, to debt. And and cash provide had no Turning and fourth XXXX. like lastly, the the equivalents

We between expect be million total million. $XXX $XXX and to sales

maintaining unit to capital we I'd Jimmy. and administrative it over to above expect to with as XX.X%. And average expect percentage be And to XX XX% with of general $X.X turn per approximately of back a net approximately units, unit like an expenses annual million. growth that, sales rate We open expenditures

Hajime Uba

prepared concludes our This remarks. Jeff. Thanks,

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

may Japanese translated is answer session, during the English. in As I before reminder, into response my Q&A a

Operator

[Operator is Tower Instructions] have Jon we from of Citi. The first question

Jon Tower

XX%, for and based just the growth store to the I'm start, about lower Maybe revenue, than sales imply that. Great. new something openings curious guidance than the greater I think on would

current the talking You're quarter. about

with pleased to the start the fiscal You're year.

just and growth state how the store the help bullish that relatively looks same-store for new sound sales? So of if that the versus curious growth square you you us current revenue why could I'm on conservative

Hajime Uba

Please allow Japanese. Ben, to question. first Thank Sure. your me speak you, translate. [Foreign Language] for Jon, you can in

Benjamin Porten

said, year as seen a Jon, entered are and definitely true So conservative. that it's we in with pleased as to [Interpreted] it's We're that September But we've still you QX, also the the -- in fiscal happy terms date that that. very being mid-process we've little see October. outperforming of and very to QX is we're we're true performance bit recovery.

so we we the it's guidance of beginning did last repeat be prudent with year. want that revenue overly we to And our revenue not a aggressive do downward have to thing the year. is feel do to The to last at of guidance

this we And was felt prudent that the most approach. so

Hajime Uba

[Foreign Language]

Benjamin Porten

able above level were XX% fact we've pleased trimmed We're margin above for the maintain that were we're terms post-April cost some streamlining the operating 'XX unit our spite changes for we our from efforts, things to and were reduce changes an sales at in in we effort under the the growth in minimize maintain of -- deceleration, pipeline back how XX%. looking of to to also particular. namely LOIs In the we the manage very restaurant of our able allowed cannibalization that impact that rate profit what of house control, to Those headwinds. to that made our control were us fiscal fiscal proud of a of that very [Interpreted] comp

is we've very control. unfortunately, our that we're are execute it something terms that can is something in so of under our been under things the not that we able macro environment pleased how nor And to predict. control is the But

point. And so at thinking this that's guidance behind really the our

favorable, continue Of we look course, to should prove environment a to the revision. forward then

Jon Tower

Okay.

the have I'm of are to store is components of new growth. about back on you are in of all existing out note? I year, you've the in slightly you're not productivity into Are anything thinking perhaps -- with Or to going size -- positive I couple But to the past where when to the on can implications. growth figure what much trend there the comp stores? you So years? these hit kind trying idea anything as this mean, there And also just markets anything relative stores. of cannibalization being opening of with the the been doing the

Hajime Uba

[Foreign Language]

Jeff Uttz

Jimmy. ahead, Go

Benjamin Porten

Go ahead, Jeff.

Jeff Uttz

Jon, and terms said, a how is as look we credence put of allows of new be particular stores, that I in lot And us focus cookie-cutter on really different into one of know, sites. not in dialed we you allows to cash-on-cash things, the As look at very -- we that We're us to return. of at size. bunch a

on return think mind, do as And a always we'll great then kind better. yet smaller And into store 'XX, Jimmy everybody build did. June may if guidance. a trend. do we QX, all a then terms little it a out said, of get fiscal the that's dial XX% know, lower comp latter our a if as or we can cash-on-cash reiterate great. I and of because XX% that get July available, of we came started August, in bit assumption smaller So isn't we in half a we'll for what that towards that's of don't into saw to AUV things don't comment to you a wasn't site But day. what kind quite else of give But comp particular your about of necessarily restaurant and our I AUV,

get in a without So to assumption it not ahead the quantifying we tell too can comp for you. want overly of for next you negative and an aggressive our put model. far our But comp I year number skis assumption is didn't that

Jon Tower

Okay. at -- on initiatives level, know about that you in maybe then pause I Great. that. Well, I back the digital The actually, thinking stop, terms store initiatives. hit appreciate of did to on earlier. things meet as should that. just I'll should going labor the you need the as back And the that having back volumes remain There's suggest to volumes of labor add the nothing kind house in more future. those would demand. place anticipate you stores, to return of that come in a in to the

Hajime Uba

[Foreign Language]

Benjamin Porten

[Foreign Language]

Hajime Uba

[Foreign Language]

Benjamin Porten

stations the are made Jon, of in terms single a [Interpreted] It's of that streamlining combination into changes operational multiple structural. one. we've the

sales in in increase require an not an so And increase would labor.

early that numbers fiscal as our very is labor our of much percentage full in While year, it's should year still the better sales a fiscal belief be than 'XX's.

Hajime Uba

[Foreign Language]

Benjamin Porten

environment that to But [Interpreted] operational improvement upside between an And to as of hope, recovers streamlining further pricing and course, be we there's if line. year-over-year we labor whatever even the we labor the that, macro without our the then expect take.

Jon Tower

mind, the well, pricing And fourth the pricing one, and wouldn't mix quarter Great. my as the the quarter last in to if you start in 'XX? is and maybe what year

Jeff Uttz

Yes.

sooner about we're in QX, about we but of January, in pricing if pricing And a think in January, pricing, bit So upcoming and typically, December you've of taken than because released. we've sales. the running price, just for year as lot about we earlier can capture then a -- Jon, numbers those always lot we're really little taken that terms you taking we've the holiday we're running X% a that year, that capture about during simply thinking in period this determined

the we which before calendar see haven't -- the a up I'm end mean, quantified So shortly price the increase, you'll fiscal coming before the end probably sorry, of year. of yet, I

Operator

next is Jeff we have of question from Barclays. The Bernstein

Unknown Analyst

[indiscernible]. is This

on question development. quick a Just

decent you've construction. and X pretty to with You've already opened pipeline X, alluded a under

get process heard to the is know maybe better provide outlook? bit availability but on there But we've the more are lead anecdotally, days, you of to you're why little maybe little there and more needs approvals? a kinds there just exactly these upside sites, on on conservative it bit anything the approval I not a wondering unit that of where to XX. quality isn't yet permitting can Just ability just to you be. Just headwinds be the the permits, any seeing that

Hajime Uba

[Foreign Language]

Benjamin Porten

this -- this So [Interpreted] Ben. is [indiscernible],

mentioned issues there a site in strategic permitting taking any us -- of or selection, This really not of earnings sites that with LOIs. There's construction we're number nothing -- of we development, just the wrong the taking aren't the terms seeing. It in the We in of right more changes terms a reflection call. with headwinds. per there prune was did last is se. In really timing seriously cannibalization

them future either decided hold we or years. to And for so cancel them

the of the of pipeline year, part got so And through. middle

our got at really led And so to it a that's just the what timing, of that's range XX really instead reason what believe. looking lease we've And that is. is we're a

so what the most sense we're made just actually guys we it you felt to And give expecting.

Unknown Analyst

then than I appreciate turning color. you're how inflation that is different assuming early, it's to a what the industry. you're you I different the But 'XX? it. just and Got of basket in commodities. easily. can change know good fiscal what assuming know very in the 'XX pretty have pivot things in that most just menu arises? fiscal in easily And -- out on need I a you and but just can items But kind if level of and

Jeff Uttz

Yes.

is know, So that basket, we right, varied, as do our commodity buy. pretty things you

so at what of next were terms there parts. for year, we many In look moving

what's Some of was going have the on. tomorrow. that solidified We to night last as Fed do

in, lot So super increase to single-digit just other an is great which particular about, different I've can things an each inflation getting because with we've of that [ is LTO pivot we yes, fix low diversified, a Nothing going talked too, be. basket what our something And is budget, so can problem reason, is terms would on. assumption. But got X the a thing if assumption we overlap with particular a of ] comparable our of product to inflation CPI commodity in broad-liners, they or the There product. a other. in for aggressive pivot some we have or quickly

to So and one broad-liners one out most our have run other will it. likely, of go happens a the we of to can product, they

very have redundancy has we in of our the the do process. last So X do because very things. chain to over we rarely years. And run been out process And supply that, year of streamlined

Unknown Analyst

I if in. And last one just great. sneak That's one can

an looks well some labor the like year, on efficiencies to that lap to But concept doesn't saw you've normalized much is the more later of digits mid-single should in year on AB like impact. is like of nuances Just going something yield of on as to the we just going although labor it spoken it forward XXXX prior all once line, these you're rate what Jeff, all a Like inflation And going that kind dividends. lapsed? are are really these your expect? like around there look line

Hajime Uba

Language] [Foreign

Benjamin Porten

been Historically, about on [Interpreted] an digits. single labor low has basis inflation annual

closer 'XX, fiscal For digits. it to was mid-single

to year we is macro 'XX. With place, environment we superior line 'XX the get the improves that additional to that that's labor obviously, into we're and And with fiscal that we'll put further there. a operational improvements leverage, fiscal if confident exit full be then able opportunity sales

Operator

from Sandler. next is have Brian Piper we The question of Mullan

Allison Arfstrom

I'm consider? thinking might for be the and tailwinds should this XX.X% and next In is Brian the headwinds Arfstrom about restaurant-level Allison you're regards that to we year year, what This the for on Mullan. range curious of some how margin

Hajime Uba

Language] [Foreign

Benjamin Porten

we operating basis. is consistently full margin, is but In [Interpreted] of maintain above profit that of year our provided profit our XX% said that one operating never margins one primary we've thing goals very restaurant-level a to on restaurant-level terms guidance,

able operating absolutely above that very hopefully, deleverage spite we that sales we XX%. in of We maintain to the beginning headwinds restaurant-level in we in that April. without that margins the beginning in saw profit of to in 'XX, expect are April, do were we to fiscal again And saw terms pleased see headwinds

Operator

Jeremy The Capital is Group. next Hamblin question from Craig-Hallum we have of

Jeremy Hamblin

to to we that of are operating little related higher, item. challenging to just wanted of bit has know -- seeing this sense some wanted a on deal And line utilities results. been more in to sense, recent fiscal in within on is is due fees Congrats a some item, dig start bit get the at DoorDash what inflation higher. years. that has of cost control insurance been how other improved But of kind and the to delivery a the which the been has you here line inflation that I a is year progressing. that embedded just get for cost I the know understand here And

Jeff Uttz

Yes.

and about let the hit me Let deal. operating then Ben Jimmy the talk will DoorDash and supplies

the of of are in prior upcoming just to we year fixed the years. cadence software up, One variable, right, when into mean, licenses, everything you was of more lot fix Jeremy. about while supplies, is a you're restaurant in line terms I operating thing a it up, to are has terms plumber utilities than think something remember there is gone as In that some the it there. costs that the in of call

of in our QX sales quarter. is is -- lowest So terms our seasonality-wise,

try costs that that pretty We're use So uses great can something at we seeing DoorDash... trend other order that [ And started bit down for in to our we're widen at looking line are some what Ecotrak control, things costs when on a the do line order down, software the we've of utilities Unfortunately, to our ], we goes renegotiate do and the work like multiple little and our the things not facilities come people those and vendor we time, chip cost to under the line list we're also past to only in can. department vendors by We is as then but of things And the work fixed in that away all years. restaurant seen but what that as direction. What is to of of pricing. when out at do you best not to a has that those we're vendor what and other has that in year in. a you'll in push are much costs, looking we're similar by continuing with find contracts so which see to best response are to to can as the look line. in control continue

Benjamin Porten

Yeah.

So discuss covered I'd terms is there XX% to other of really costs. in Jeff say what that of

where For subsidize for delivery that's orders campaign reflection of the promotional part delivery fees first-time DoorDash. we costs, a on of a

And so it's not wouldn't a it typical a expect I fee. fee. recurring be to

Jeremy Hamblin

quantify And what impact that that was line can of promotion you the on item?

Benjamin Porten

I that but number not huge. don't have on me,

Jeremy Hamblin

you be provide which Okay. just Got target? bit timing context shot, on initiatives you labor of a that expect was XX.X% line, help I'm that's sure to initiatives you the to of of then a It bit on timing expect it. expecting would I and sales but when And a like -- could not those, some line to play just terms those think can to us straight of could upcoming year. kind the you that of better get out you're in more color your the on technology some of understand impact this you just sounds little right? how

Benjamin Porten

Yes, implementation. the opportunity. more with -- to with not -- to biggest maximum to terms to into much very than I'm been Yes. implementation saved XX in maybe American that spring. just Japan working a our system is There's of first points reservation the and is for in 'XX discuss. use. its definitely system. on be That opportunity in how store lockstep port but expect biggest fiscal we The happy early bring English, self-seating and going it basis for I've fiscal translated track, It's make of 'XX new appropriate

Hajime Uba

[Foreign Language]

Benjamin Porten

about percentage sales is year, than said, That by comments to the that that represented [Interpreted] contemplate as doesn't upside last being able labor fiscal Jimmy's system. a in 'XX produce in earlier expectations of of the lower being terms our reservation

gravy profit should the well. that and labor -- line on operating line margin So us restaurant-level as for will be

Jeremy Hamblin

Great. just on details more Any the Helpful million Last can a color share $X.X on color. thing, you more bit litigation that? expense. little

Jeff Uttz

your that it, types had know deal to company mill, details of not have liberty to the just, these XX it's claims to but and We're claims the don't hasn't the restaurant typical of into pretty -- that years with over unfortunately hour companies deal time the wage to from It's get I really Jeremy, of time. restaurant X a years. last with run to at

-- So and wage it hour... is it's

Operator

Instructions] question Sharon The [Operator William of Zackfia is from next Blair. we have

Sharon Zackfia

kind phone like the the guess apologize, sounds the in but a quarter and I and have improved do trends it August is bit November April muffled, caused I really tie-in? promotional think [ Act? through the do it swoon now in on was -- as best think you was what mean kind on you your progressed. my little it of happened insight is like August, November FAST what ]? certainly quarter Do I what I more postmortem guess and as that improved of you

Hajime Uba

Language] [Foreign

Benjamin Porten

I industry with in August, our of pretty deceleration with in through aligned the shock think the of XXXX. was coming we're initially, thought the we starting a sales thinking implementation that, it much April of of on [Interpreted] sticker In from the terms lot rest AB

the it then been earnings have a on once And which calls played peers. role IP to certainly our wider collaborations, by became changed thinking it Our national corroborated has a comment macro that factor, as of well. could your clear, was

from August Our which very benefited one from a ran September. successful piece, to was August campaign

that we're earlier opacity, revenue prudent with felt was comments. with property. Also, with it given But continue. these too the guidance pleased appropriate hopeful the just October, just sense But As to entered first to results we're much we've November, our X Pikmin, so make we on trends to really Jimmy's be days. going very back it there. Nintendo we entered, doesn't which is comment a the been we working

Sharon Zackfia

one efficiencies, continue moat? more the and to the get and about guess to I system more and versus bottom coming maybe reinvesting talked the savings. Ultimately, helpful. do we in of these more from continue in other able year get being really you Are I know just that. about bps Ben, self-seating the That's savings, think more to kind question. next business how to that line deepen reservation harvesting competitive XX and you to in

Hajime Uba

[Foreign Language]

Benjamin Porten

[Foreign Language]

Hajime Uba

[Foreign Language]

Benjamin Porten

Language] [Foreign

Hajime Uba

[Foreign Language]

Benjamin Porten

Yes. [Interpreted]

the In we by get technologies, labor reservation the that future at. for levels to in opportunities level of certainly any saw fiscal think this to terms really us the expectation and back that an the appropriate our implementation of help be us is system presented 'XX. We that's will

that you first see. the thing so probably And be that will

Sharon Zackfia

Great. get Last the in can question. Jeff, the quarter? traffic we

Jeff Uttz

it I that have number. It -- minus Yes, X.X%. negative was was

So traffic X.X% for [Technical a down minus comp X.X%. price down Difficulty], X.X%, of

Operator

of next is we Company. The Brooks Benchmark have question Todd from

Todd Brooks

Southwestern I lot in a spread I the concept. wanted kind regional a of of this focus of in tougher an that on explore drag element the the same-store that of weakness that that to of Texas more you lapping there the by highlighted. hit is sales? the quarter, sales investors you on West number kind know the same-store Coast Barrel portability artificial market, the and stack region? And Or as an is was that of versus X-year during But performance is got proof that were that region

Hajime Uba

Language] [Foreign

Benjamin Porten

demand but not our artifact an that the that not the want comps we've performance we over [Interpreted] it's biggest XX So in an indication looking or popularity way or it's the is at emphasize the the that regional necessarily grown really that -- in really our just those to markets, last terms of of we thing see comps, years. of

markets, got base of markets, our Outside so of half XX pretty into comp gone single-unit And XX got those we've markets. they're in multiunit which recently are in units, -- about those have much California. has over all Texas. We about

and the a And to it the has meaningful demand. just that so do fact has it's do has first very with infill. on with to It that obviously, comps, impact nothing

in and and Southeast, Dallas impacted impacted those been each one in infill Looking have was that markets, by which prior which one there. was a in largely Houston, a not in store headwind to infill there the particular, so infills,

Hajime Uba

[Foreign Language]

Benjamin Porten

[Interpreted] units very cannibalization And just some last our of the to see included, when 'XX, to we've the that's we've play that starting start of give thinking really since whatsoever. market in obviously greater number which additional pipeline. And don't call, new earnings into a approached being proactive fiscal cannibalization terms on in you you'll way been

-- are pretty in options with pretty 'XX fiscal terms of limited adding terms it's times, of In new lead places.

first is markets early Bakersfield, doing approach 'XX our and DMA have smaller than which the typically a places, were for great existing there. removing in of we looking would we're meaningfully at so And really fiscal that's But success enter, infills. been

options So up would of consider terms a of markets. in lot that of we new in what opens terms really

ability our in fiscal so gear very against And comps, about. really infill which to strategy 'XX, excited come going we're manage full our to into that's

Todd Brooks

Can comes you additional one us great. I talked detail maybe frequency fewer follow-up, may, behind events? Ben, a Is just some through it event? question. per the follow lower about the IP if it? Is up That's walk shorter partner a would and Just of number perhaps right when duration And collaborations. an yourself of do you what I do? of along, evolving? into it see tying to it's specific to you're are anymore? you And collabs of of how you this that looking guys kind year you Or your work calendar

Benjamin Porten

interesting an an was similar have rolling that's worth what that's property way collaboration IP you one to to of to the and But where in want so not always his cost. thinking the associated pretty as I thinking branded the Jimmy putting it, Yes. -- with single every is before was our collabs well every prepared That's collaboration. referring is expensive remarks. but

the we the going to really let's go hits. for thinking that be think so are And big ones really, now is

needle And so going had the comp that's perspective. guaranteed, targets case. we move longer no from just will think before We're we X that the after a really really

Hajime Uba

Language] [Foreign

Benjamin Porten

[Interpreted] course, collaborations with reducing number And of to the just replace. of we're nothing not

advertising huge a have We pipeline.

VP listening. very new on job. They doing mentioned think We're I since every is hired him, really feel a which we've -- great we've VP call pleased. of Our Marketing, our

a They successful prices. IP how October, as are going in efforts branded and We're doesn't mean additional we're have branded variable. IP pretty but these [indiscernible] that additional the into put context, out so be collaboration, it, just been doing giving that that excited don't collaborations seeing food-focused just big campaigns without results. we've the strong the are can The be September we we so are campaigns And part And won't some just big prices. when especially we that not to see new advertising part performance place, where be to upcoming the would see ones. of another we months

Todd Brooks

up? maybe kind of to we're programs leave the then weaning want which And to as ourselves revenue room year bit and conservancy it just the X of kicks start of guidance, for finally, that Is as make programs to the Understood. little a part of mix about of a sense kind the a versus that reasons new in the you advertising -- talked there you well this year. that's yourself lot as do a

Hajime Uba

Language] [Foreign

Benjamin Porten

always hit impact [Interpreted] past IP terms we've in guidance, guidance, contemplate Basically, for a whenever the So revenue in opportunity that's collaboration, given doesn't we've -- when it years upside. have collaborations. we of of

It that's contemplate does here. IP not the collaborations. And same so thinking

Jeff Uttz

thing... Todd, And one

Todd Brooks

Yes, Jeff, ahead. go

Jeff Uttz

I collaborations, they great on is fraction IP as say be additional about those, of those to of line. come want what's just was that talking between to this, that Jimmy the alluded they Todd, too, the in IP the just and top campaigns and that will Ben [Technical can collaborations, to Difficulty] the a be really that about marketing cost with

So a flow other down were of analyst earlier lot ties to it also other a The will these of about kind that another by question line, bottom collaborations IP cost into we into costs. asked with the costs. and flow

to flows we just other top straight to that don't that that income. So that campaigns marketing line continue in as line, cost are put for good the as hit net

well. in we're as So having mixed forward some looking of the to IP those with collaborations really

Operator

is next Sanderson we have question from of Research. The Jim Northcoast

James Sanderson

detail wanted up spending. on little G&A bit Just to more a follow

over improvement prior slight a year. reported you think I

can what through of maybe and walk through item So type would can flow bottom going to line how forward, the leverage us you expect line? that you

Jeff Uttz

to going about down adding support And leverage be The the in the we came salaries. biggest line where to job do how having just do XX.X% we throughout our Really, guidance in than see going how look rather without support biggest to the leverage to technology next item the has people the I we year. next points. and things company. XX% XX And on time G&A. things from XX great get center That's continue of of would we at that's determining we're in represent we more continue year. that's to do do XX% better -- XX.X% in how every X and cadence year the software add to than to will last our people. much into better efforts open and a basis center we And do efficiently done support It's our year, ago things in we're that joining center XX.X% years anticipated for And restaurants. team that everyone of entire and this when use year next because is

Hajime Uba

[Foreign Language]

James Sanderson

Okay. And just...

Hajime Uba

something comment? add to I Can Jeff's

James Sanderson

course. Of

Hajime Uba

Language] is This Jimmy. [Foreign

Benjamin Porten

add the the we've of -- to comment, other year, X Jeff's in the And a really, had has But And unfortunately, synergy. way of infills. preceding side last [Interpreted] lot the terms in over the for call. the discussion on of last the to cannibalization years, infills is years, the point been last X

more have infill these have handle restaurants. we area can that we markets, now managers so And

add adding so And expect XX managers. any for though don't 'XX, units, even to area we're fiscal we

savings, salary savings travel density. with So greater

travel to don't far. as have Our facilities teams

all that of We equipment get with there. teams technology we'll proprietary patented leverage that our have deal

G&A an are as there beyond well. regional that are lot costs so and And of for 'XX a fiscal opportunity

James Sanderson

follow All for traffic same-store the quarter. and sure wanted up right. I also just make I understood and sales about to the feedback

X.X% said on traffic. you negative think I X% price,

of what's that So quarter. a Any in driving would the worse bit on mix imply that? a negative feedback little

Jeff Uttz

really happy the out. came Actually, with where we're mix

year If you been go a in you the our digits. high back negative X years, back go mix or had single

because last looking now really we're at at is really, we're So it looking compared we're where happy it to year.

necessarily we weren't that's negligible. maybe an they for that with Last where or drink a be mix really attachment, landed weren't this people identified. It's adding change not come is think think happy maybe [Technical back And year, I having the year. Difficulty] So can QX. additional but anything the we're that

James Sanderson

Okay.

Okay. Last question for me.

brief DoorDash. wanted a update Just on

If quarter? on to And for if was what in-store you your pricing? pricing the is provide marketplace sales equal mix set delivery maybe can the in

Benjamin Porten

Yes.

So is our of mix overall sales. X.X%

so as same the in with DoorDash is in is it we pricing -- March. restaurant Our added the

we've context how Just on some to grown. give you

calendar X%. September been have would which QX, mix off-premises in through of 'XX, November mix that the point Our was at

grown the DoorDash. it's meaningfully of so with And addition

Operator

At questions. there that, you stage, for Thank today's this concludes with joining this no conference. are And us. further

disconnect live spoken the by now this marked your interpreter [Interpreted] may call.] are transcript lines. [Portions You were an that of present on

Kura Sushi USA (KRUS) 6 Nov 242024 Q4 Earnings call transcript