Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Kura Sushi (NASDAQ: KRUS) and the best and worst performers in the sit-down dining industry.
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 13 sit-down dining stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 2.4% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13% since the latest 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 $64.46 million, up 25.2% year on year. This print exceeded analysts’ expectations by 4.7%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Hajime Uba, President and Chief Executive Officer of Kura Sushi, stated, “Our fiscal year is off to an excellent start, and we’re very encouraged to see that our comps have returned to positive territory. Our new openings are exceeding expectations and have us even more excited about Kura’s ultimate opportunity in the U.S. Adjusted EBITDA margins have achieved an all-time high for a fiscal first quarter, thanks to companywide efforts to control costs. We’re off to a great start, and I’m extremely excited for another banner year at Kura Sushi.”
The stock is down 50% since reporting and currently trades at $50.97.
Is now the time to buy Kura Sushi? Access our full analysis of the earnings results here, it’s free.
Best Q4: Brinker International (NYSE: EAT)
Founded by Norman Brinker in Dallas, Brinker International (NYSE: EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Brinker International reported revenues of $1.36 billion, up 26.5% year on year, outperforming analysts’ expectations by 9.6%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Brinker International achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.1% since reporting. It currently trades at $145.20.
Is now the time to buy Brinker International? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Bloomin' Brands (NASDAQ: BLMN)
Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ: BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Bloomin' Brands reported revenues of $972 million, down 18.6% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.
Bloomin' Brands delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 38.2% since the results and currently trades at $7.35.
Read our full analysis of Bloomin' Brands’s results here.
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 $921 million, up 5% year on year. This print topped analysts’ expectations by 0.9%. It was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
The stock is down 10.6% since reporting and currently trades at $48.53.
Read our full, actionable report on The Cheesecake Factory here, it’s free.
Darden (NYSE: DRI)
Founded in 1968 as Red Lobster, Darden (NYSE: DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Darden reported revenues of $3.16 billion, up 6.2% year on year. This result missed analysts’ expectations by 1.7%. Overall, it was a slower quarter as it also logged a slight miss of analysts’ same-store sales estimates.
The stock is up 8.7% since reporting and currently trades at $204.61.
Read our full, actionable report on Darden here, it’s free.
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