Kura Sushi USA Inc (NASDAQ:KRUS) stock rose 9.94% (As on July 7, 11:13:22 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 23. Comparable restaurant sales increased 10.3% for the third quarter of 2023 as compared to the third quarter of 2022. Food and beverage costs as a percentage of sales were 30.0% compared to 29.7% in the third quarter of 2022. The increase is primarily due to food cost inflation, partially offset by increases in menu prices. Labor and related costs as a percentage of sales decreased to 29.2% from 31.0% in the third quarter of 2022. Operating income was $1.3 million compared to operating income of $0.5 million in the third quarter of 2022. Net income was $1.7 million compared to net income of $0.5 million, in the third quarter of 2022. Restaurant-level operating profit was $11.6 million, or 23.5% of sales, compared to $8.5 million, or 22.5% of sales, in the third quarter of 2022. Adjusted EBITDA was $5.1 million compared to $3.2 million in the third quarter of 2022.

KRUS in the third quarter of FY 23 has reported the adjusted earnings per share of 16 cents, beating the analysts’ estimates for the adjusted earnings per share of 4 cents. The company had reported the adjusted revenue to $49.2 million in the third quarter of FY 23, missing the analysts’ estimates for revenue of $49.57 billion.  During the fiscal third quarter of 2023, the Company opened one new restaurant in Buford, Georgia. Subsequent to May 31, 2023, the Company opened one new restaurant in Framingham, Massachusetts.

Kura Sushi expects FY 2023 revenue to be in the range of $187.00M-$189.00M versus the analyst consensus of $187.00M. For the full fiscal year of 2023, General and administrative expenses as a percentage of sales to be between 15.0% and 15.5%; and plans to open 9 to 11 new restaurants, with average net capital expenditures per unit of approximately $2.5 million.

Meanwhile, during the third quarter of 2023, the Company completed an underwritten public offering of 1,265,000 shares of its Class A common stock at a public offering price of $54.00 per share, including the exercise in full of the underwriters’ option to purchase 165,000 additional shares of Class A common stock. The Company received aggregate net proceeds from the offering, net of underwriters’ discounts and commissions and offering expenses of approximately $64.3 million.