Irvine-based Kura Sushi USA Inc. (Nasdaq: KRUS) took a hit in the third quarter with the temporary closure of its 25 restaurants due to COVID-19.
The quarterly results came Tuesday with an overall update on the sushi restaurant operator, which currently has 11 restaurants open for indoor dining and 14 in California offering takeout only.
Kura notched misses on both earnings and revenue projections for its third quarter ended May 31. The company reported a net loss of $9.2 million, swinging to the red after recording a $700,000 profit in the year-ago period. Analysts on average expected the chain to record a net loss of $6.5 million.
Revenue during the May quarter was down 83% to $2.8 million with the temporary restaurant closures that went into effect March 18. Analysts expected revenue of $4.3 million.
The company currently has five restaurants in its development pipeline. However, those openings are contingent on local government orders related to the pandemic.
Despite the lack of near-term visibility on the pandemic, President and CEO Hajime Uba is optimistic about the business noting in a statement, “I am confident in our ability to navigate through this pandemic and remain excited about the long-term growth opportunities of our business.”
Kura Sushi said in an SEC filing Monday its board had taken further action to offset the pandemic’s impact on the business with temporary salary reductions for its CEO of 30%, while the COO and CFO would each take a15% cut in pay. The temporary action went into effect July 1 and continues for the next six months.
Kura’s shares have fallen nearly 60% since the start of the year. Its shares were off 4% in after-hours trading Tuesday to $10.65 on the quarterly results. The company has a market cap of $93 million.
Go here for more updates on OC companies’ responses to the coronavirus.