Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at 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 12 sit-down dining stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 5.4% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Best Q2: 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 $73.97 million, up 17.3% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Hajime Uba, President and Chief Executive Officer of Kura Sushi, stated, “The third quarter was a very busy one for us, between rolling out the new reservation system, investigating new market opportunities, and building out our IP pipeline and strategizing on how to get the most out of our Bikkurapon collaborations. I’m extremely pleased with the results on all three fronts, and very proud of the efforts by our team members to capture the full opportunity of the summer season and set ourselves up for a great fiscal 2026.”
Kura Sushi achieved the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 5.8% since reporting and currently trades at $81.79.
Is now the time to buy Kura Sushi? Access our full analysis of the earnings results here, it’s free.
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 $1.46 billion, up 21% year on year, outperforming analysts’ expectations by 1.6%. The business had a strong quarter with an impressive beat of analysts’ same-store sales estimates and full-year EPS guidance beating analysts’ expectations.
Brinker International pulled off the fastest revenue growth among its peers. The market seems content with the results as the stock is up 1.2% since reporting. It currently trades at $156.90.
Is now the time to buy Brinker International? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $1.00 billion, down 10.4% year on year, exceeding analysts’ expectations by 1.4%. Still, it was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly.
Bloomin' Brands delivered the slowest revenue growth in the group. As expected, the stock is down 23.1% since the results and currently trades at $6.91.
Read our full analysis of Bloomin' Brands’s results here.
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 $230.8 million, up 11.9% year on year. This result surpassed analysts’ expectations by 3.3%. Zooming out, it was a mixed quarter as it also recorded a solid beat of analysts’ same-store sales estimates but a significant miss of analysts’ EBITDA estimates.
Dine Brands achieved the biggest analyst estimates beat among its peers. The stock is up 8.9% since reporting and currently trades at $23.75.
Read our full, actionable report on Dine Brands 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 $3.27 billion, up 10.6% year on year. This print met analysts’ expectations. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ same-store sales estimates but a significant miss of analysts’ EPS estimates.
The stock is down 5.4% since reporting and currently trades at $210.79.
Read our full, actionable report on Darden here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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