- The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 17.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 340.61% to $3.75 million when compared to the same quarter last year. In addition, KONA GRILL INC has also vastly surpassed the industry average cash flow growth rate of -80.10%.
- Compared to its closing price of one year ago, KONA's share price has jumped by 50.92%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- KONA's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that KONA's debt-to-equity ratio is low, the quick ratio, which is currently 0.56, displays a potential problem in covering short-term cash needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, KONA GRILL INC's return on equity is below that of both the industry average and the S&P 500.
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 55.93 points (-0.3%) at 16,507 as of Friday, Aug. 1, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,028 issues advancing vs. 2,012 declining with 122 unchanged. The Leisure industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.1%. Top gainers within the Leisure industry included Premier Exhibitions ( PRXI), up 2.2%, Good Times Restaurants ( GTIM), up 2.4%, Kona Grill ( KONA), up 1.9%, Papa Murphy's Holdings ( FRSH), up 2.2% and Churchill Downs ( CHDN), up 2.1%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Kona Grill ( KONA) is one of the companies that pushed the Leisure industry higher today. Kona Grill was up $0.36 (1.9%) to $18.78 on average volume. Throughout the day, 100,324 shares of Kona Grill exchanged hands as compared to its average daily volume of 69,300 shares. The stock ranged in a price between $18.50-$19.19 after having opened the day at $18.50 as compared to the previous trading day's close of $18.43. Kona Grill, Inc. owns and operates polished casual dining restaurants in the United States. The company's restaurants offer prepared food comprising American food, various appetizers and entrees, and sushi; and alcoholic beverages, such as wines, specialty cocktails, and beers. Kona Grill has a market cap of $163.5 million and is part of the services sector. Shares are down 0.5% year-to-date as of the close of trading on Thursday. Currently there are 5 analysts who rate Kona Grill a buy, no analysts rate it a sell, and 1 rates it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Kona Grill as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Highlights from TheStreet Ratings analysis on KONA go as follows: