Unpacking Q1 Earnings: Kura Sushi (NASDAQ:KRUS) In The Context Of Other Sit-Down Dining Stocks

As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the sit-down dining industry, including Kura Sushi (NASDAQ:KRUS) and its peers.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 14 sit-down dining stocks we track reported an ok Q1; on average, revenues missed analyst consensus estimates by 0.9%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the sit-down dining stocks have fared somewhat better than others, they collectively declined, with share prices falling 2.2% on average since the previous earnings results.

Kura Sushi (NASDAQ:KRUS)

Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ:KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology.

Kura Sushi reported revenues of $57.29 million, up 30.4% year on year, topping analysts' expectations by 1.1%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Hajime Uba, President and Chief Executive Officer of Kura Sushi, stated, “I‘m very pleased to report the ongoing strength of our business as we progress through a record fiscal year. It was unprecedented for us when we announced a guidance raise so early in the year with our first quarter call, and being able to follow the next quarter with another guidance raise demonstrates our incredible confidence in the business...”

Kura Sushi pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is down 15.7% since the results and currently trades at $87.78.

Read our full report on Kura Sushi here, it's free.

Best Q1: BJ's (NASDAQ:BJRI)

Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.

BJ's reported revenues of $337.3 million, down 1.2% year on year, in line with analysts' expectations. It was an exceptional quarter for the company, with an impressive beat of analysts' same store sales, gross margin, and EPS expectations.

The stock is up 9.4% since the results and currently trades at $35.83.

Is now the time to buy BJ's? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Dine Brands (NYSE:DIN)

Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.

Dine Brands reported revenues of $206.2 million, down 3.5% year on year, falling short of analysts' expectations by 2%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is down 9.3% since the results and currently trades at $39.59.

Read our full analysis of Dine Brands's results here.

Cracker Barrel (NASDAQ:CBRL)

Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ:CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.

Cracker Barrel reported revenues of $817.1 million, down 1.9% year on year, falling short of analysts' expectations by 0.4%. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a solid beat of analysts' earnings estimates.

The stock is up 12.1% since the results and currently trades at $50.82.

Read our full, actionable report on Cracker Barrel here, it's free.

The Cheesecake Factory (NASDAQ:CAKE)

Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands.

The Cheesecake Factory reported revenues of $891.2 million, up 2.9% year on year, in line with analysts' expectations. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a decent beat of analysts' earnings estimates.

The stock is up 16.9% since the results and currently trades at $39.71.

Read our full, actionable report on The Cheesecake Factory here, it's free.

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