Completed Acquisition of Benihana and RA Sushi
in May
Increased Revenue to $172.5 Million or 107%
The ONE Group Hospitality, Inc. (“The ONE Group” or the
“Company”) (Nasdaq: STKS) today reported its financial results for
the second quarter ended June 30, 2024.
Highlights for the second quarter 2024 compared to the same
quarter in 2023 are as follows (the prior year quarter excludes
any contribution from the recent acquisition of Benihana, which
closed in May 2024):
- Total GAAP revenues increased 106.8% to $172.5 million
from $83.4 million;
- Comparable sales* decreased 7.0%;
- GAAP net loss available to common stockholders was $11.5
million, or $0.36 net loss per share ($0.08 adjusted net income per
share) ****, compared to GAAP net income available to common
stockholders of $0.6 million, or $0.02 net income per share ($0.06
adjusted net income per share) ****
- Restaurant Operating Profit*** increased 151.3% to $30.0
million from $11.9 million;
- Restaurant Operating Profit Margin*** increased 280
basis points to 17.7% from 14.9%; and
- Adjusted EBITDA** increased 180.6% to $23.9 million from
$8.5 million.
"We are pleased to be building lasting relationships with our
guests through unforgettable VIBE dining experiences while
generating industry leading AUVs. Notably, the cost-saving
initiatives we put in place last year coupled with our strong new
restaurant performance drove restaurant level profit and restaurant
level margin to increase at Kona Grill and stay relatively flat at
STK, despite the challenging same store sales environment.”
“In May, we completed our acquisition of the Benihana and RA
Sushi brands and welcomed nearly 6,500 new teammates. We have since
begun integrating them into our Company and have already started
realizing synergies in G&A, purchasing and operations. To date,
we have realized approximately $9 million in G&A synergies
since the closing and over the next two years, we expect to achieve
another $11 million in G&A, supply chain and other operational
synergies for a total of $20 million in annual synergies as we
leverage our larger scale, combine our expertise, and enhance our
capabilities to develop a best-in-class supply chain across our
now-expanded portfolio.”
Hilario concluded, “We have a strong pipeline for unit growth in
2024 and beyond. We recently opened a RA Sushi in Plantation,
Florida that is off to a strong start and there are another six to
nine additional new venues that should open this year. Our
expansion story points to significant opportunity ahead.”
*Comparable sales represent total U.S. food and beverage sales
at owned and managed units opened for at least a full 24-months.
This measure includes total revenue from our owned and managed
locations. The Company monitors sales growth at its established
restaurant base in addition to growth that results from restaurant
acquisitions and new restaurant openings.
**We define Adjusted EBITDA as net income before interest
expense, provision for income taxes, depreciation and amortization,
non-cash impairment loss, non-cash rent expense, pre-opening
expenses, non-recurring gains and losses, stock-based compensation,
transaction and exit costs and transition and integration expenses.
Adjusted EBITDA has been presented in this press release and is a
supplemental measure of financial performance that is not required
by, or presented in accordance with, GAAP. Refer to the
reconciliation of Net Income to Adjusted EBITDA in this
release.
***We define Restaurant Operating Profit as owned restaurant net
revenue minus owned restaurant cost of sales and owned restaurant
operating expenses. Restaurant Operating Profit has been presented
in this press release and is a supplemental measure of financial
performance that is not required by, or presented in accordance
with, GAAP. Refer to the reconciliation of Operating income to
Restaurant Operating Profit in this release.
****We define Adjusted Net Income / (Loss) to Common
Stockholders as net income / (loss) to common stockholders before
transaction and exit expenses, transition and integration expenses,
non-cash rent during the pre-opening period, other non-recurring
costs and the income tax effect of any adjustments. Adjusted Net
Income / (Loss) to Common Stockholders has been presented in this
press release and is a supplemental measure of financial
performance that is not required by, or presented in accordance
with, GAAP. Refer to the reconciliation of Net (Loss) / Income to
Common Stockholders to Adjusted Net Income / (Loss) to Common
Stockholders in this release.
Acquisition of Benihana Inc. Owner
On May 1, 2024, the Company announced it had completed its
previously announced acquisition of Safflower Holdings Corp., the
owner of Benihana Inc. (“Benihana”), for $365 million in cash. The
transaction was financed with a portion of a new $390 million term
loan and revolving credit facility and $160 million in preferred
equity primarily issued to an affiliate of Hill Path Capital
LP.
Restaurant Development
The Company intends to open eight to eleven new venues in 2024
consisting of three to four STKs, two to three Kona Grills, one to
two Benihanas, one Salt Water Social and one RA Sushi.
In March 2024, the Company opened an STK restaurant in
Washington, DC and in July 2024, the Company opened a RA Sushi in
Plantation, Florida.
There are currently two Company-owned STK restaurants, one
Company-owned Kona Grill restaurant, one Company-owned Salt Water
Social restaurant and one Company-owned Benihana restaurant under
construction in the following cities:
- Owned STK restaurant in Aventura, Florida
- Owned Kona Grill restaurant in Tigard, Oregon
- Owned Salt Water Social restaurant in Denver, Colorado
- Owned STK restaurant in Topanga, California
- Owned Benihana restaurant in San Mateo, California
Share Repurchase Program
In March 2024, the Company’s Board of Directors authorized a $5
million share repurchase program. During the second quarter of
2024, the Company spent $0.9 million for the repurchases of 0.2
million shares.
2024 Targets
The Company is reaffirming its 2024 targets, which are inclusive
of the acquisition of Benihana.
Financial Results and Other Select
Data
US$s in millions
2024 Guidance
1/1/2024-12/31/2024
Total GAAP revenues
$700 to $740
Managed, license, franchise and incentive
fee revenues
$17 to $19
Total owned operating expenses as a
percentage of owned restaurant net revenue
Approx. 83.0%
Consolidated Total G&A excluding
stock-based compensation
Approx. $40
Consolidated Adjusted EBITDA
$95 to $100
Consolidated Restaurant pre-opening
expenses
$7 to $9
Consolidated Effective income tax rate
5% to 10%
Consolidated Total capital expenditures,
net of allowances received by landlords
$50 to $60
Consolidated Number of new system-wide
venues
Eight to Eleven
Guidance Analysis
US$s in millions
2023 (1)
2023 Pro Forma (2)
Guidance
Growth %
The ONE Group Pre-acquisition
$40.1
$40.1
$45
12.2%
Benihana Pre-acquisition
$61.0
$41.0
$50 to $55
22.0% to 34.1%
Consolidated
$101.1
$81.1
$95 to $100
17.1% to 23.3%
(1)
$61 million is the latest full fiscal year
for Benihana, adjusted for full bonus payout as of 3/31/2024
(2)
Benihana is adjusted for eight months of
The ONE Group ownership (May through December)
Conference Call and Webcast
Emanuel “Manny” Hilario, President and Chief Executive Officer,
and Tyler Loy, Chief Financial Officer, will host a conference call
and webcast today at 4:30 PM Eastern Time.
The conference call can be accessed live over the phone by
dialing 412-542-4186. A replay will be available after the call and
can be accessed by dialing 412-317-6671; the passcode is 10190088.
The replay will be available until Tuesday, August 20, 2024.
The webcast can be accessed from the Investor Relations tab of
The ONE Group’s website at www.togrp.com under “News / Events.”
About The ONE Group
The ONE Group Hospitality, Inc. (Nasdaq: STKS) is an
international restaurant company that develops and operates upscale
and polished casual, high-energy restaurants and lounges and
provides hospitality management services for hotels, casinos and
other high-end venues both in the U.S. and internationally. The ONE
Group’s focus is to be the global leader in Vibe Dining, and its
primary restaurant brands and operations are:
- STK, a modern twist on the American steakhouse concept with
restaurants in major metropolitan cities in the U.S., Europe, and
the Middle East, featuring premium steaks, seafood, and specialty
cocktails in an energetic upscale atmosphere.
- Benihana, a leading operator of highly differentiated
experiential brands that owns the only national teppanyaki brand in
the US. The Company also franchises Benihanas in the U.S.,
Caribbean, Central America, and South America.
- Kona Grill, a polished casual, bar-centric grill concept with
restaurants in the U.S., featuring American favorites,
award-winning sushi, and specialty cocktails in an upscale casual
atmosphere.
- RA Sushi, a Japanese cuisine concept that offers a fun-filled,
bar-forward, upbeat, and vibrant dining atmosphere with restaurants
in the U.S. anchored by creative sushi, inventive drinks, and
outstanding service.
- ONE Hospitality, The ONE Group’s food and beverage hospitality
services business, develops, manages, and operates premier
restaurants and turnkey food and beverage services within high-end
hotels and casinos currently operating venues in the U.S. and
Europe.
Additional information about The ONE Group can be found at
www.togrp.com.
Cautionary Statement on Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995, including with
respect to the impact of the Safflower Holdings acquisition,
restaurant openings and 2024 financial targets. Forward-looking
statements may be identified by the use of words such as “target,”
“intend,” “anticipate,” “believe,” “expect,” “estimate,” “plan,”
“outlook,” and “project” and other similar expressions that predict
or indicate future events or trends or that are not statements of
historical matters. A number of factors could cause actual results
or outcomes to differ materially from those indicated by such
forward-looking statements, including but not limited to: (1) our
ability to integrate the new or acquired restaurants into our
operations without disruptions to operations; (2) our ability to
capture anticipated synergies; (3) our ability to open new
restaurants and food and beverage locations in current and
additional markets, grow and manage growth profitably, maintain
relationships with suppliers and obtain adequate supply of products
and retain employees; (4)factors beyond our control that affect the
number and timing of new restaurant openings, including weather
conditions and factors under the control of landlords, contractors
and regulatory and/or licensing authorities; (5) our ability to
successfully improve performance and cost, realize the benefits of
our marketing efforts and achieve improved results as we focus on
developing new management and license deals; (6) changes in
applicable laws or regulations; (7) the possibility that The ONE
Group may be adversely affected by other economic, business, and/or
competitive factors; and (8) other risks and uncertainties
indicated from time to time in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K filed
for the year ended December 31, 2023 and Quarterly Reports on Form
10-Q.
Investors are referred to the most recent reports filed with the
Securities and Exchange Commission by The ONE Group Hospitality,
Inc. Investors are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made,
and we undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
THE ONE GROUP HOSPITALITY,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except earnings
per share and related share information)
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Revenues:
Owned restaurant net revenue
$
169,021
$
79,923
$
250,529
$
158,502
Management, license, franchise and
incentive fee revenue
3,473
3,470
6,960
7,447
Total revenues
172,494
83,393
257,489
165,949
Cost and expenses:
Owned operating expenses:
Owned restaurant cost of sales
35,877
19,215
54,591
38,070
Owned restaurant operating expenses
103,192
48,784
152,830
95,611
Total owned operating expenses
139,069
67,999
207,421
133,681
General and administrative (including
stock-based compensation of $1,495, $1,234, $2,853 and $2,554 for
the three and six months ended June 30, 2024 and 2023,
respectively)
10,622
8,039
18,156
15,523
Depreciation and amortization
8,025
3,506
13,285
7,162
Transaction and exit costs
6,826
—
8,349
—
Transition and integration expenses
3,794
—
3,794
—
Pre-opening expenses
2,504
1,609
5,418
2,908
Other expenses
—
195
32
352
Total costs and expenses
170,840
81,348
256,455
159,626
Operating income
1,654
2,045
1,034
6,323
Other expenses, net:
Interest expense, net of interest
income
7,865
1,642
9,943
3,429
Loss on early debt extinguishment
4,149
—
4,149
—
Total other expenses, net
12,014
1,642
14,092
3,429
(Loss) income before provision for income
taxes
(10,360
)
403
(13,058
)
2,894
(Benefit) provision for income taxes
(3,268
)
(13
)
(3,536
)
148
Net (loss) income
(7,092
)
416
(9,522
)
2,746
Less: net loss attributable to
noncontrolling interest
(163
)
(152
)
(524
)
(428
)
Net (loss) income attributable to The ONE
Group Hospitality, Inc.
$
(6,929
)
$
568
$
(8,998
)
$
3,174
Series A Preferred Stock paid-in-kind
dividend and accretion
(4,538
)
—
(4,538
)
—
Net (loss) income available to common
stockholders
$
(11,467
)
$
568
$
(13,536
)
$
3,174
Net (loss) income per common share:
Basic
$
(0.36
)
$
0.02
$
(0.43
)
$
0.10
Diluted
$
(0.36
)
$
0.02
$
(0.43
)
$
0.10
Weighted average common shares
outstanding:
Basic
31,424,938
31,782,783
31,376,951
31,730,299
Diluted
31,424,938
32,673,457
31,376,951
32,779,821
The following table sets forth certain statements of operations
data as a percentage of total revenues for the periods indicated.
Certain percentage amounts may not sum to total due to
rounding.
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Revenues:
Owned restaurant net revenue
98.0
%
95.8
%
97.3
%
95.5
%
Management, license, franchise and
incentive fee revenue
2.0
%
4.2
%
2.7
%
4.5
%
Total revenues
100.0
%
100.0
%
100.0
%
100.0
%
Cost and expenses:
Owned operating expenses:
Owned restaurant cost of sales (1)
21.2
%
24.0
%
21.8
%
24.0
%
Owned restaurant operating expenses
(1)
61.1
%
61.0
%
61.0
%
60.3
%
Total owned operating expenses (1)
82.3
%
85.1
%
82.8
%
84.3
%
General and administrative (including
stock-based compensation of 0.9%, 1.5%, 1.1%, and 1.5%, for the
three and six months ended June 30, 2024 and 2023,
respectively)
6.2
%
9.6
%
7.1
%
9.4
%
Depreciation and amortization
4.7
%
4.2
%
5.2
%
4.3
%
Transaction and exit costs
4.0
%
—
%
3.2
%
—
%
Transition and integration expenses
2.2
%
—
%
1.5
%
—
%
Pre-opening expenses
1.5
%
1.9
%
2.1
%
1.8
%
Other expenses
—
%
0.2
%
—
%
0.2
%
Total costs and expenses
99.0
%
97.5
%
99.6
%
96.2
%
Operating income
1.0
%
2.5
%
0.4
%
3.8
%
Other expenses, net:
Interest expense, net of interest
income
4.6
%
2.0
%
3.9
%
2.1
%
Loss on early debt extinguishment
2.4
%
—
%
1.6
%
—
%
Total other expenses, net
7.0
%
2.0
%
5.5
%
2.1
%
(Loss) income before provision for income
taxes
(6.0
)%
0.5
%
(5.1
)%
1.7
%
(Benefit) provision for income taxes
(1.9
)%
—
%
(1.4
)%
0.1
%
Net (loss) income
(4.1
)%
0.5
%
(3.7
)%
1.7
%
Less: net loss attributable to
noncontrolling interest
(0.1
)%
(0.2
)%
(0.2
)%
(0.3
)%
Net (loss) income attributable to The ONE
Group Hospitality, Inc.
(4.0
)%
0.7
%
(3.5
)%
1.9
%
__________________________________
(1)
These expenses are being shown as a
percentage of owned restaurant net revenue.
THE ONE GROUP HOSPITALITY,
INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
information)
June 30,
December 31,
2024
2023
ASSETS
(Unaudited)
Current assets:
Cash and cash equivalents
$
32,247
$
21,047
Credit card receivable
10,979
7,234
Restricted cash and cash equivalents
552
—
Accounts receivable
9,287
10,030
Inventory
9,164
6,184
Other current assets
4,849
1,809
Due from related parties
376
376
Total current assets
67,454
46,680
Operating lease right-of-use assets
271,160
95,075
Property and equipment, net
260,385
139,908
Goodwill
145,162
—
Intangibles, net
146,193
15,306
Deferred tax assets, net
45,236
14,757
Other assets
8,639
4,636
Security deposits
1,635
883
Total assets
$
945,864
$
317,245
LIABILITIES, SERIES A PREFERRED STOCK
AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
26,723
$
19,089
Accrued expenses
52,474
28,333
Current portion of operating lease
liabilities
16,523
6,897
Deferred gift card revenue and other
6,715
2,077
Current portion of long-term debt
3,500
1,500
Other current liabilities
559
266
Total current liabilities
106,494
58,162
Long-term debt, net of current portion,
unamortized discount and debt issuance costs
330,861
70,410
Operating lease liabilities, net of
current portion
294,171
120,481
Other long-term liabilities
5,116
832
Total liabilities
736,642
249,885
Commitments and contingencies (Note
17)
Series A preferred stock, $0.0001 par
value, 160,000 shares authorized; 160,000 issued and outstanding at
June 30, 2024 and 0 issued and outstanding at December 31, 2023
143,481
—
Stockholders’ equity:
Common stock, $0.0001 par value,
75,000,000 shares authorized; 33,765,978 issued and 31,297,200
outstanding at June 30, 2024 and 33,560,428 issued and 31,283,975
outstanding at December 31, 2023
3
3
Preferred stock, other than Series A
preferred stock, $0.0001 par value, 9,840,000 shares authorized; no
shares issued and outstanding at June 30, 2024 and December 31,
2023, respectively
—
—
Treasury stock, at cost, 2,468,778 shares
at June 30, 2024 and 2,276,453 shares at December 31, 2023
(15,939
)
(15,051
)
Additional paid-in capital
71,656
58,270
Retained earnings
15,348
28,884
Accumulated other comprehensive loss
(2,987
)
(2,930
)
Total stockholders’ equity
68,081
69,176
Noncontrolling interests
(2,340
)
(1,816
)
Total stockholder's equity
65,741
67,360
Total liabilities, Series A preferred
stock and stockholders' equity
$
945,864
$
317,245
Reconciliation of Non-GAAP Measures
We prepare our financial statements in accordance with generally
accepted accounting principles (GAAP). In this press release, we
also make references to the following non-GAAP financial measures:
total food and beverage sales at owned and managed units, Adjusted
EBITDA, Restaurant Operating Profit and Adjusted Net Income
(Loss).
Total food and beverage sales at owned and managed units. Total
food and beverage sales at owned and managed units represents our
total revenue from our owned operations as well as the revenue
reported to us with respect to sales at our managed locations,
where we earn management and incentive fees at these locations. We
believe that this measure represents a useful internal measure of
performance as it identifies total sales associated with our brands
and hospitality services that we provide. Accordingly, we include
this non-GAAP measure so that investors can review financial data
that management uses in evaluating performance, and we believe that
it will assist the investment community in assessing performance of
restaurants and other services we operate, whether or not the
operation is owned by us. However, because this measure is not
determined in accordance with GAAP, it is susceptible to varying
calculations and not all companies calculate these measures in the
same manner. As a result, this measure as presented may not be
directly comparable to a similarly titled measure presented by
other companies. This non-GAAP measure is presented as supplemental
information and not as an alternative to any GAAP measurements. The
following table includes a reconciliation of our GAAP revenue to
total food and beverage sales at our owned and managed units (in
thousands):
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Owned restaurant net revenue (1)
$
169,021
$
79,923
$
250,529
$
158,502
Management, license, franchise and
incentive fee revenue
3,473
3,470
6,960
7,447
GAAP revenues
$
172,494
$
83,393
$
247,489
$
165,949
Food and beverage sales from managed units
(1)
32,090
30,001
60,194
60,703
Total food and beverage sales at owned and
managed units
$
201,111
$
109,924
$
310,723
$
219,205
______________________
(1)
Components of total food and beverage
sales at owned and managed units.
The following table presents the elements of the quarterly and
annual Same Store Sales measure for 2023 and 2024:
2023 vs. 2022
2024 vs. 2023
Q1
Q2
Q3
Q4
YTD
Q1
Q2
US STK Owned Restaurants
1.0%
(10.1)%
(7.8)%
(6.5)%
(6.0)%
(6.0)%
(11.9)%
US STK Managed Restaurants
15.4%
2.5%
0.7%
0.7%
4.9%
(8.6)%
(7.4)%
US STK Total Restaurants
5.3%
(6.8)%
(5.5)%
(4.6)%
(3.0)%
(6.8)%
(10.6)%
Benihana Total Restaurants
(1.0)%
Kona Grill Total Restaurants
(4.3%)
(1.5)%
1.1%
(3.9)%
(2.2)%
(9.7)%
(14.0)%
RA Sushi Total Restaurants
(10.3)%
Combined Same Store Sales
1.6%
(4.7)%
(3.0)%
(4.3)%
(2.7)%
(7.9)%
(7.0)%
Adjusted EBITDA. We define Adjusted EBITDA as net income before
interest expense, provision for income taxes, depreciation and
amortization, non-cash impairment loss, non-cash rent expense,
pre-opening expenses, non-recurring gains and losses, stock-based
compensation, certain transactional and exit costs and transition
and integration expenses. Not all the aforementioned items defining
Adjusted EBITDA occur in each reporting period but have been
included in our definitions of terms based on our historical
activity. Adjusted EBITDA has been presented in this press release
and is a supplemental measure of financial performance that is not
required by, or presented in accordance with, GAAP.
The following table presents a reconciliation of net income to
EBITDA and Adjusted EBITDA for the periods indicated (in
thousands):
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Net (loss) income attributable to The ONE
Group Hospitality, Inc.
$
(6,929
)
$
568
$
(8,998
)
$
3,174
Net loss attributable to noncontrolling
interest
(163
)
(152
)
(524
)
(428
)
Net (loss) income
(7,092
)
416
(9,522
)
2,746
Interest expense, net
7,865
1,642
9,943
3,429
(Benefit) provision for income taxes
(3,268
)
(13
)
(3,536
)
148
Depreciation and amortization
8,025
3,506
13,285
7,162
EBITDA
5,530
5,551
10,170
13,485
Pre-opening expenses
2,504
1,609
5,418
2,908
Stock-based compensation
1,495
1,234
2,853
2,554
Transaction and exit costs
6,826
—
8,349
—
Transition and integration expenses
3,794
—
3,794
—
Non-cash rent expense (1)
(429
)
(123
)
(691
)
(154
)
Loss on early debt extinguishment
4,149
—
4,149
—
Other expenses
—
195
32
352
Adjusted EBITDA
23,869
8,466
34,074
19,145
Adjusted EBITDA attributable to
noncontrolling interest
(71
)
(65
)
(333
)
(254
)
Adjusted EBITDA attributable to The ONE
Group Hospitality, Inc.
$
23,940
$
8,532
$
34,407
$
19,400
_______________________________
(1)
Non-cash rent expense is included in owned
restaurant operating expenses and general and administrative
expense on the consolidated statements of operations and
comprehensive income.
Restaurant Operating Profit. We define Restaurant Operating
Profit as owned restaurant net revenue minus owned restaurant cost
of sales and owned restaurant operating expenses.
We believe Restaurant Operating Profit is an important component
of financial results because: (i) it is a widely used metric within
the restaurant industry to evaluate restaurant-level productivity,
efficiency, and performance, and (ii) we use Restaurant Operating
Profit as a key metric to evaluate our restaurant financial
performance compared to our competitors. We use these metrics to
facilitate a comparison of our operating performance on a
consistent basis from period to period, to analyze the factors and
trends affecting our business and to evaluate the performance of
our restaurants.
The following table presents a reconciliation of Operating
income to Restaurant Operating Profit for the period indicated (in
thousands):
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Operating income as reported
$
1,654
$
2,045
$
1,034
$
6,323
Management, license and incentive fee
revenue
(3,473
)
(3,470
)
(6,960
)
(7,447
)
General and administrative
10,622
8,039
18,156
15,523
Depreciation and amortization
8,025
3,506
13,285
7,162
Transaction and exit costs
6,826
—
8,349
—
Transition and integration expenses
3,794
—
3,794
—
Pre-opening expenses
2,504
1,609
5,418
2,908
Other expenses
—
195
32
352
Restaurant Operating Profit
$
29,952
$
11,924
$
43,108
$
24,821
Restaurant Operating Profit as a
percentage of owned restaurant net revenue
17.7
%
14.9
%
17.2
%
15.7
%
Restaurant Operating Profit by brand is as follows (in
thousands):
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
STK restaurant operating profit (Company
owned)
$
9,114
$
8,463
$
20,221
$
18,854
STK restaurant operating profit (Company
owned) as a percentage of STK revenue (Company owned)
18.3
%
18.6
%
20.0
%
20.2
%
Benihana restaurant operating profit
(Company owned)
$
16,734
$
—
$
16,734
$
—
Benihana restaurant operating profit
(Company owned) as a percentage of Benihana revenue (Company
owned)
21.4
%
—
21.4
%
—
Core Kona Grill restaurant operating
profit
$
3,308
$
3,296
$
5,625
$
5,628
Core Kona Grill restaurant operating
profit as a percentage of Core Kona Grill revenue
12.1
%
11.0
%
10.3
%
9.9
%
Non-core Kona Grill restaurant operating
profit
$
(171
)
$
98
$
(427
)
$
267
Non-core Kona Grill restaurant operating
profit as a percentage of Non-core Kona Grill revenue
(5.2
)%
2.3
%
(6.7
)%
3.3
%
Core RA Sushi restaurant operating
profit
1,034
—
1,034
—
Core RA Sushi restaurant operating profit
as a percentage of Core RA Sushi revenue
11.1
%
—
11.1
%
—
Non-core RA Sushi restaurant operating
profit
(71
)
—
(71
)
—
Non-core RA Sushi restaurant operating
profit as a percentage of Non-core RA Sushi revenue
(5.3
)%
—
(5.3
)%
—
__________________
(1)
Non-core restaurants are restaurants in
which the Company is strategically evaluating through lease
negotiations, rebranding, or closure.
Adjusted Net Income. We define Adjusted Net Income as net income
before transaction and exit costs, transition and integration
expenses, lease termination expenses, one-time stock-based
compensation, non-recurring costs, non-cash rent during the
pre-opening period and the income tax effect of any
adjustments.
We believe that Adjusted Net Income is an appropriate measure of
operating performance, as it provides a clear picture of our
operating results by eliminating certain one-time expenses that are
not reflective of the underlying business performance. Adjusted Net
Income is included in this press release because it is a key metric
used by management, and we believe that it provides useful
information facilitating performance comparisons from period to
period. Adjusted Net Income has limitations as an analytical tool
and our calculation thereof may not be comparable to that reported
by other companies; accordingly, you should not consider it in
isolation or as a substitute for analysis of our results as
reported under GAAP.
For the three months ended
June 30,
For the six months ended June
30,
2024
2023
2024
2023
Net (loss) income available to common
stockholders as reported
$
(11,467
)
$
568
$
(13,536
)
$
3,174
Adjustments:
Transaction and exit costs
6,826
—
8,349
—
Transition and integration expenses
3,794
—
3,794
—
Loss on early debt extinguishment
4,149
—
4,149
—
Non-cash pre-opening expenses(1)
367
1,122
708
1,548
Other expenses
—
195
32
352
Adjusted net income before income
taxes
3,669
1,885
3,496
5,074
Income tax effect on adjustments(2)
(879
)
(81
)
(1,277
)
(119
)
Adjusted net income available to common
stockholders as reported
$
2,790
$
1,804
$
2,219
$
4,955
Adjusted net income per share: Basic
$
0.09
$
0.06
$
0.07
$
0.16
Adjusted net income per share: Diluted
$
0.08
$
0.06
$
0.07
$
0.15
Shares used in computing basic income per
share
31,424,938
31,782,783
31,376,951
31,730,299
Shares used in computing diluted income
per share
33,104,542
32,673,457
33,398,219
32,779,821
________________________________
(1)
Non-cash pre-opening expenses relate to
non-cash rent expense during the pre-opening period.
(2)
Reflects the tax expense associated with
the adjustments for the three and six months ended June 30, 2024,
and June 30, 2023. The Company uses its estimated normalized annual
tax rate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806038805/en/
Investors: ICR Michelle Michalski or Raphael Gross (646)
277-1224 Michelle.Michalski@icrinc.com
Media: ICR Seth Grugle (646) 277-1272 seth.grugle@icrinc.com
ONE Group Hospitality (NASDAQ:STKS)
過去 株価チャート
から 7 2024 まで 8 2024
ONE Group Hospitality (NASDAQ:STKS)
過去 株価チャート
から 8 2023 まで 8 2024
