Kura Sushi USA Inc (NASDAQ:KRUS) Q1 2020 Earnings Conference Call - Final Transcript

Jan 08, 2020 • 05:00 pm ET


Kura Sushi USA Inc (NASDAQ:KRUS) Q1 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Kura Sushi USA, Inc. Fiscal First Quarter 2020 Earnings Conference Call.

[Operator Instructions]

On the call today, we have Hajime Jimmy Uba President and Chief Executive Officer, Koji Shinohara[Phonetic], Chief Financial Officer, and Benjamin Porten, Investor Relations Manager. I would now like to turn the conference over to Mr. Porten. Please begin.

Benjamin Porten

Thank you, operator, good afternoon everyone, and thank you all for joining. By now, everyone should have access to our fiscal first quarter 2020 earnings release. It can be found at www.kurasushi.com in the Investor Relations section. A copy of the earnings release has also been included in an 8-K we submitted to the SEC.

Before we begin our formal remarks, I need to remind everyone that part of our discussions today will include forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, and therefore you should not put undue reliance on them. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. We refer all of you to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition.

Also during today's call, we will discuss certain non-GAAP measures, which we believe can be useful in evaluating our performance. A presentation of this additional information should not be considered in isolation nor as a substitute for results prepared in accordance with GAAP. And the reconciliations to comparable GAAP measures are available in our earnings release. With that out of the way, I would like to turn the call over to Jimmy.

Hajime Jimmy Uba

Thank you, Ben and good afternoon everyone. Our fiscal first quarter results included strong momentum demonstrated by our comparable restaurant sales growth of 7.9%, as guests continue to respond positively to our premium ingredients, affordable price points, and the most importantly, the distinctive Kura Experience. Our net loss in the first quarter was generally in line with expectations and the quarterly cadence that we laid out with our FY '20 guidance last quarter and adjusting for the delay in opening our Katy restaurant.

Additionally, we are pleased to reaffirm our guidance for the full year. We have a number of drivers in place that we believe will continue to improve our operating results. We continue to expand our rewards program, which offers guest a $5 coupon for every $50 they spent. We are very pleased with the results as the rewards program members continued to have larger average checks, [Indecipherable]. Furthermore, we have experienced an incredibly high discount rate with direct advertising using the email addresses collected through the program. We expect to roll out a rewards program across our system during this fiscal year.

In addition, we are pleased with all results[Phonetic] of our touch panel during ordering tests at our Little Tokyo restaurant and are