Kura Sushi USA Inc (NASDAQ:KRUS) stock fell 9.87% (As on July 10, 11:22:38 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 24. Comparable restaurant sales increased 0.6% for the third quarter of 2024 as compared to the third quarter of 2023. Food and beverage costs as a percentage of sales were 29.2% compared to 30.0% in the third quarter of 2023. The decrease is primarily due to increases in menu prices and supply chain initiatives. Labor and related costs as a percentage of sales were 32.3% compared to 29.2% in the third quarter of 2023. The increase is primarily due to increases in wage rates and higher pre-opening labor costs. Occupancy and related expenses were $4.3 million compared to $3.6 million in the third quarter of 2023. The increase is primarily due to 17 new restaurants opening since the third quarter of 2023. Other costs as a percentage of sales increased to 14.4% compared to 12.5% in the third quarter of 2023. The increase was primarily driven by advertising and promotion, software licenses, repairs and maintenance, utilities, operating supplies and travel expenses.

Moreover, operating loss was $1.2 million compared to operating income of $1.3 million in the third quarter of 2023. Net loss was $0.6 million, or $(0.05) per diluted share, compared to net income of $1.7 million, or $0.16 per diluted share, in the third quarter of 2023. Adjusted net income was four thousand dollars compared to an adjusted net income of $1.7 million or  in the third quarter of 2023. Restaurant-level operating profit was $12.6 million, or 20.0% of sales, compared to $11.6 million, or 23.5% of sales, in the third quarter of 2023. Adjusted EBITDA was $4.5 million compared to $5.1 million in the third quarter of 2023. During the fiscal third quarter of 2024, the Company opened four new restaurants in Orlando, Florida; Atlanta, Georgia; Scarsdale, New York; and Roseville, California. Subsequent to May 31, 2024, the Company opened one new restaurant in Lake Grove, New York.

KRUS in the third quarter of FY 24 has reported break even adjusted earnings per share, beating the analysts’ estimates for the adjusted loss per share of 6 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $63.08 million in the third quarter of FY 24, missing the analysts’ estimates for revenue by 0.03%.