Is Kura Sushi a Buy or Sell?

how's it going everybody this is beef Bush today I'm going to talk about the Kura Sushi stock Kura Sushi did not sponsor this video I do not currently own any kurasushi stock and I may or may not buy it in the future this video is for informational purposes only as always do your own research before making any investment decisions today I have a brand new Mumu app emotion it's the best I've ever seen it if you deposit a hundred dollars you get five free shares of stock if you deposit a thousand dollars you get 10 free shares of stock and 100 free dollars this is a cash reward that you have to use to buy stock you can't just cash it out and bring it home or anything if you deposit five thousand dollars or more into your MooMoo brokerage account you can then get one free share of Tesla or Google stock check out my affiliate link down in the video description below you look at the Kura Sushi stock and it's quite envious right you're like ah how come I didn't get in on that 233 game over the past few years or keep in mind I'm concentrating on the US subsidiary they have a huge chain in Japan and Asia already in Japan it has 400 locations with 35 years of history but the U.S subsidiary was opened in 2008. currently it has 46 locations in the U.S and 16 more coming soon every single new store is kind of like advertising for their stock people go and eat there and then go wow all these robots going on this is the future I Love Sushi and maybe you're just like me and you just think about maybe it's a good time to buy the stock because it's so popular an hour and a half to two hour of wait if you guys do go even if you sign up for the wait list you have to tell the server that you have arrived then they'll put you on a different queue and then you have to wait a little bit more like 20 30 minutes still has the conveyor belt thing you can eat at your own pace you can eat however many plates that you want 20 plates whatever nobody's gonna look at you mainly because you can put all these plates in those little slots and no one will know you piled up like 20 plates and you look like a pig you each plate has like a little plastic cover in case people are like sneezing on it or licking your sushi currently each plate sells for around three dollars and sixty cents and in my experience if you eat like eight or nine plates or so the final out the door price after tax and tip and everything so around 35 to 40 dollars a person if you don't eat as much as I do well you can get away with maybe thirty dollars I think if you're in Asia and you go to akura sushi the price is a lot cheaper than the US 40 Taiwan dollars per plate this translates to about a dollar 25 this is one third the cost over there man cost of living in the US is really really crazy most of it it's probably going towards rent and paying everybody it's a technology oriented company so they have an app if you spend 50 or more you get a coupon to use that's five dollars for the next time that you go personally this doesn't work very well for me I tried using it once because it expires within two weeks that makes you have to go pretty frequently in order to take advantage of this five dollars so most of the time whenever I get it I just you know don't care about it because I don't want to eat Kura sushi that often there's also a reward system which is kind of Genius you eat 15 plates and once you put in the 15 plate all these animation goes on on the ordering system on the 7th or eighth plate it also does like a halfway point and then says oh you're really close to you know saving the sushi person or there's some story behind it but once you eat the 15 plates it makes all this noise and the fuss and this little toy ball comes down from the Chute there's a little toy thing at every single table or bar area and the toy dispenser dispenses you a ball with like a little gimmicky toy inside it might be like an eraser a keychain and then they rotate this it's not always the same keychain they collaborate with different kind of characters and so there's always something new great for kids and there is a secondary market for these keychains you can flip them I flip these things for like ten dollars on eBay after getting them they also have a robot that delivers your drinks and wasabi they have a plate disposal at every table or every counter seat go in when you're done you can also scan the kiosk at your table and pay within your phone quality though I'd say it's like hit or miss half the time is really good and half the time it's like a little bit of a Miss maybe the quality wasn't right on the spot right around the pandemic time it seems like they have a bit of a consistency issue some Growing Pains hopefully they can solve this in the future you know in order to boost their stock price much higher personally when I go to Asia I much prefer sushiro because I like their quality their consistency is a lot better there's a larger variety even I go to the Cupertino location and it's about hour and a half to two hour away and I've been to the Austin one same thing really huge lines they need more restaurants and I think this is part of the reason that's propelling the stock forward taking a quick look at the revenue by the way I got all these charts from MooMoo app the one that I just talked about in the very beginning yes other apps May provide the same thing but I like to use the MooMoo app to to look at the after hours trading price movements if there's some big news going on I go on the MooMoo app to see if it moved taking a look at the revenue here it went from 2018 51 million to 64 million the next year 45 65 million and then 141 million in 2022. doubling their revenue in one single year I suppose because we're opening up we're not caring about covid anymore everybody is going out again operating profit is a little bit scary in 2020 they lost 16 million 2021 they lost 10 million 2022 they lost 750k it's not a money making type of restaurant over here but it seems like a lot of companies like to do this especially Amazon they just like to increase Revenue like crazy not earn any money because they put all of their profits into opening up brand new restaurants it might make sense over here because there's so much demand I bit if they doubled their stores they're gonna double their revenue taking a look at their p e ratio there's no p e ratio it's a loss price divided by negative earnings so maybe they need like a negative p e ratio market cap of 903 million total shares of 11 million 52-week low of 38.52 week high of 96 dollars currently is at 81. so on a one-year time base it seems on the high side right now kind of like if you look at Amazon right in 2022 they made 514 billion half a trillion dollars I probably contribute like twenty thousand dollars of Revenue to Amazon they lost 2.7 billion dollars from this Revenue some guy is in the accounting department and saying hey look we got like a hundred billion dollars of profit over here we gotta find some way to spend it all not a bad way to not pay any taxes especially as a small business you can cancel out your earnings with spending let's take a look at this PS which is price divided by sales per share you can see it has historically hovered around four price is four times sales but then over the past few days it skyrocketed to around 5.7 or so this means that it's relatively expensive in the short term but if you zoom out to the two-year time frame it has historically been even higher than that they really need to open up more stores and quick and please open up one near me although they don't have a demand problem I still feel like they can do better in terms of quality I think they're attracting more people in terms of Technology they have pretty good food most of the time but they can actually do better in freshness in the quality of the fish in the sizing of the fish because I felt like it's gotten a little bit thinner over the past few times I went naturally you want to see who heads it right so let's take a look at the CEO his name is Hajime uba I think that means hurry up right Hajime means beginning has served as president and CEO of kurasushi USA since 2008 he holds a ba degree from Kansai University and Japan interesting from 2000 to 2004 he was a restaurant manager and then a regional manager from 04 to 08 he headed operations for Kura Sushi where he oversaw the expansion and grew it from 30 to 180 restaurant locations and then in OA he headed Kura Sushi USA in 2017 he became board of directors let's take a look at his salary in 2022 he earns a total compensation of 650 000 base pay of three hundred seventy thousand dollars this is the kind of stuff I like to do just go dig around who runs it what kind of products they make actually go to the restaurant eat there see what kind of Technology they have see what kind of lines they have will I invest in this I feel like there's a lot of hype around it and it has pumped the stock price up pretty high so this might be an expensive stock I would say you're not getting really good value out of it not to say that it won't power up higher because they're going to open up more stores and you know more hype is going to go around it but it's really dangerous to play with hype you just never know when it's going to go out of fashion and all of a sudden the stock price collapses so my gut feeling for this is sit and wait thanks for watching this video I hope you guys enjoyed this research don't forget to give me a like And subscribe for more thanks for watching foreign [Music]

Channel: BeatTheBush

Views: 2,456

Keywords: personal finance, financial independence, FIRE, beatthebush, beat the bush, kura sushi stock, krus ticker, buy or sell kura sushi, kura sushi usa, kura vs sushiro, investing in kura sushi

Id: 8gCWOlIJ4DU

Length: 10min 9sec (609 seconds)

Published: Thu Jun 01 2023