Friday’s Top Gainers; iRhythm Technologies, Kura Sushi USA, Seritage Growth Properties

iRhythm jumps on CMS’ Proposed Rule for reimbursement 

iRhythm  Technologies Inc. (NASDAQ: IRTC) jumped 23.16%  on positive reimbursement news from the Centre for Medicare and Medicaid Services (CMS) after the agency made the 2023 Medicare Physician Fee Schedule  Proposed Rule. The Proposed Rule proposes an update in payment fees and other services provisions furnished post-January 1, 2023, and reimbursement per the Medicare Physicians Fee Schedule (MPFS). A public comment will follow after the rule’s announcement, which will lead to the Final Rule released in early November for implementation on January 1, 2023.

Truist analysts pointed to CMS proposing a national coverage determination (NCD) of $229 for the ZioXT wearable cardiac monitor. However, when including the geographic physician payment adjustments, the actual payment could reach $280, according to the analysts. The rule and associated appendixes incorporate the prosed rates for two Category I Current Procedure Terminology code sets linked to long-term continuous electrocardiogram monitoring and recording used by the company to seek reimbursement for the ZioXT device.

Seritage Growth Properties  to sell real estate property assets 

Seritage Growth Properties  (NYSE: SRG) jumped 80.26% after the property developers indicated that it would seek shareholder approval to dispose of its real estate assets. To increase shareholder value, Seritage’s governing board has been strategically reviewing its assets. After the consummation of the asset sales, the business will be dissolved. The board is certain that by removing the requirement for shareholder approval for every transaction, this strategy will expand the pool of prospective buyers. As a result, Seritage might be able to sell its assets for more money if there are more bidders.

CEO Andrean Olshan said that the Board, the Special Committee, and the management team have agreed that considering the diversified nature of the company’s portfolio, pursuing numerous transactions with various prospective buyers for individual assets or asset groups may present a better chance to increase shareholder value.

Kura Sushi USA reports a 65% sales increase on a single-quarter  basis

Kura Sushi USA Inc. soared 33.62% after the US operator of a Japanese chain of sushi restaurants reported solid sales and profits for the quarter that ended May 31, 2023. Compared to Q3 2019, same-store sales were up 28%  in the quarter under review. The company’s same-store sales increased by 65% in a single quarter. Meanwhile, profitability was higher than anticipated. The business claimed that labor rose by 230 percentage points throughout the time, despite a 30 percentage point drop in the cost of goods sold.

Strong sales combined with lower-than-anticipated labor and food costs resulted in significantly higher profits. The business’s operating margin increased by 470 basis points to 22.5 percent during the most recent quarter. CEO  Hajime Uba said that although they previously faced staffing levels due to staff quarantining in Q2, they didn’t experience such headwinds in the third quarter. The company is optimistic about attaining optimal staffing levels.