Business
Kura Sushi USA Announces Fiscal Fourth Quarter and Fiscal Year 2020 Financial Results
IRVINE, Calif., Nov. 16, 2020 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”) (NASDAQ: KRUS), a technology-enabled Japanese
About this update from Kura Sushi Usa, Inc.
[{"type":"text","content":"IRVINE, Calif., Nov. 16, 2020 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”) (NASDAQ: KRUS), a technology-enabled Japanese restaurant concept, today provided a COVID-19 business update and reported fiscal fourth quarter and fiscal year 2020 financial results for the period ended August 31, 2020.\n COVID-19 Business Update Due to changes in local guidelines for public activities, the Company began to re-open certain restaurants in late May, and by the end of fiscal fourth quarter, the Company was able to open 23 out of 25 of its restaurants. Out of the 23 restaurants, 11 were largely operating on a takeout only basis due to an indoor dining restriction that the state of California enacted at the beginning of July. To mitigate the loss of in-store sales, the Company implemented several initiatives to supplement its takeout service, including limited outdoor seating in many of its California restaurants and a system-wide roll-out of online ordering and delivery options through Grubhub. In response to COVID-19, the Company continues to focus on cleaning and sanitizing protocols at its restaurants. The Company has implemented additional training and operating processes for all of its employees, including increased handwashing procedures, the use of face masks and gloves, and requirement to pass a health screening process, which includes a temperature check, before the start of each shift. As of August 31, 2020, the Company had cash and cash equivalents of approximately $9 million and no debt. The Company had not drawn down on the revolver with Kura Sushi Japan as of the end of the fiscal fourth quarter. On September 2, 2020, the Company increased its revolving line of credit to $35 million, and extended the payback period from one year to five years. In November 2020, the Company borrowed $3 million on the revolver. Fiscal Fourth Quarter 2020 Highlights Total sales were $5.5 million, a decrease of $13.2 million compared to the fourth quarter of 2019;Operating loss was $6.8 million, compared to operating income of $1.0 million in the fourth quarter of 2019;Net loss was $6.8 million, or ($0.82) per diluted share, compared to net income of $0.9 million, or $0.15 per diluted share, in the fourth quarter of 2019;Restaurant-level operating loss* was $2.3 million, compared to restaurant-level operating profit* of $...