Financial Data and Key Metrics Changes - First quarter revenues increased by almost 150% to $211 million, driven by contributions from Benihana and Rasushi, as well as new unit openings [6][23] - Adjusted EBITDA rose over 230% to $25.2 million, significantly exceeding top line growth [7][30] - Restaurant level EBITDA improved to 16.4%, a 50 basis point year-over-year increase [6][25] - Net loss available to common stockholders was $6.6 million, or $0.21 per share, compared to a loss of $2.1 million, or $0.07 per share, in the prior year [29] Business Line Data and Key Metrics Changes - Benihana locations achieved a restaurant EBITDA margin of 20.1%, while STK locations had a margin of 17.7% [6][25] - Company-owned restaurant net revenue increased by 154.5% to $207.4 million, primarily due to contributions from Benihana and Rasushi [23] - Managed, license, and incentive fee revenues increased by 7% to $3.7 million [24] Market Data and Key Metrics Changes - The company experienced a 3.2% reduction in consolidated comparable sales, indicating some challenges in the market [23] - Positive transaction growth of 4.1% was noted at the STK brand, reflecting a shift in consumer preferences [6][9] Company Strategy and Development Direction - The company aims to become a global leader in vibe dining, focusing on operational efficiencies, culinary innovation, and strategic marketing [5][14] - Expansion plans include opening five to seven new venues in 2025, with a focus on both company-owned and franchised locations [18][34] - The integration of Benihana is expected to yield annual synergies of at least $20 million by 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in consumer behavior towards value-driven offerings and alternative dining times, such as happy hours [9][10] - The company anticipates challenges in the second quarter due to macroeconomic factors and a shift in convention schedules [48] - Management remains optimistic about the long-term growth potential, targeting $5 billion in system-wide sales [20] Other Important Information - The company has launched a loyalty program called "Friends with Benefits" to enhance guest experiences and drive repeat visits [12] - The company ended the quarter with nearly $68 million in liquid resources, providing flexibility for future growth [20][31] Q&A Session Summary Question: Consumer behavior trends in Q2 - Management indicated that higher-end consumers are performing better, attributing this to strategic initiatives rather than demographics [37] Question: Improvements in grill concepts - Increased marketing efforts and the launch of the loyalty program are key focuses for improving results in casual dining brands [38][39] Question: Labor costs and retention - Retention rates are stable, with moderate inflation in labor costs observed [40][41] Question: Same store sales cadence - February was the most challenging month, while March showed strong performance, particularly due to Easter [46] Question: Competitor promotions and discounting - Competitors are leveraging TV advertising heavily, prompting the company to enhance grassroots marketing efforts [50] Question: Franchising efforts - The company has updated its franchising infrastructure and is actively negotiating development agreements with interested franchisees [56] Question: Pricing strategy - The company is conservative with pricing, focusing on maintaining value positioning and traffic growth [60] Question: Balancing company-owned vs. franchised stores - The company aims for a balanced portfolio of approximately 50% company-owned and 50% franchised stores for Benihana [77]

Financial Performance - Total revenues increased 148.4% to $211.1 million from $85.0 million[6] - Adjusted EBITDA grew 233% to $25.2 million from $7.6 million, significantly exceeding top-line growth[2] - Operating income increased by $11.3 million to $10.7 million from an operating loss of $0.6 million[6] - GAAP net loss available to common stockholders was $6.6 million, or $0.21 net loss per share[6] - Net income attributable to The ONE Group Hospitality, Inc. was $975,000 for Q1 2025, a recovery from a net loss of $2,069,000 in Q1 2024[21] - Adjusted net income for the three months ended March 30, 2025, was $4,586, compared to an adjusted net loss of $631 for the same period in 2024[35] - The company reported a net loss available to common stockholders of $6,616 for the three months ended March 30, 2025, compared to a net loss of $2,069 for the same period in 2024[35] Revenue Breakdown - Owned restaurant net revenue accounted for 98.2% of total revenues in Q1 2025, compared to 95.9% in Q1 2024[23] - Total food and beverage sales at owned and managed units reached $241,201,000 for the three months ended March 30, 2025, up from $109,612,000 in the same period of 2024[27] Sales and Transactions - Benihana same store sales increased 0.7% while STK transactions increased 4.1%[1] - Same Store Sales for US STK Total Restaurants decreased by 3.6% in Q1 2025 compared to Q1 2024[28] - Consolidated comparable sales are expected to decline between -5.5% and -4% for Q2 2025[8] Operational Efficiency - General and administrative expenses as a percentage of total revenues decreased to 6.2% in Q1 2025 from 8.9% in Q1 2024[23] - Adjusted EBITDA is defined as net income before interest expense, taxes, depreciation, and other non-recurring items, providing a clearer view of operational performance[28] Future Outlook - The company plans to open five to seven new venues in 2025[3] - For Q2 2025, total GAAP revenues are guided to be between $205 million and $210 million[8] - The company aims to deliver at least $20 million in acquisition synergies by 2026[2] Assets and Liabilities - The company has $34.1 million in cash and short-term credit card receivables as of March 30, 2025[5] - Total current assets decreased to $63,850,000 as of March 30, 2025, from $69,326,000 as of December 31, 2024[25] - Total liabilities decreased to $752,886,000 as of March 30, 2025, from $758,749,000 as of December 31, 2024[25] Profitability Metrics - Restaurant Operating Profit for the three months ended March 30, 2025, was $35,503, which is 17.1% of owned restaurant net revenue, compared to 16.1% for the same period in 2024[32] - Restaurant EBITDA for the three months ended March 30, 2025, was $33,951, representing 16.4% of owned restaurant net revenue, up from 15.9% in the same period of 2024[32] - The STK restaurant operating profit for the three months ended March 30, 2025, was $10,136, which is 18.5% of STK revenue, down from 21.6% in the same period of 2024[33] - Benihana restaurant operating profit for the three months ended March 30, 2025, was $22,886, representing 19.8% of Benihana revenue[33] - Core Grill Concepts restaurant operating profit for the three months ended March 30, 2025, was $2,767, which is 8.0% of Grill Concepts revenue, down from 8.6% in the same period of 2024[33]

Financial Data and Key Metrics Changes - Full year revenue increased over 100% to $672 million and adjusted EBITDA increased almost 130% to $75.2 million, reflecting significant growth from the prior year [11][12] - Fourth quarter revenues increased by almost 150% to a record $222 million, with adjusted EBITDA rising almost 150% to $30.3 million [12][46] - Company-owned restaurant cost of sales as a percentage of net revenue decreased by 250 basis points to 20.4% compared to 22.8% in the prior year quarter [40] Business Line Data and Key Metrics Changes - Company-owned restaurants' net revenue increased by 155.7% to $217.8 million, primarily due to contributions from Benihana and RA Sushi [38] - Restaurant operating profit decreased by 90 basis points to 18.4%, with Benihana locations achieving a restaurant operating profit of 22.6%, improving approximately 300 basis points versus the prior year [41][95] Market Data and Key Metrics Changes - Consolidated comparable sales decreased by 4.3%, with management license and franchise revenue decreasing by 14.5% to $4.1 million [39] - The company anticipates consolidated comparable sales for the first quarter of 2025 to be between -4% to -3%, with a full year expectation of -3% to +1% [50][58] Company Strategy and Development Direction - The company aims to become the global leader in vibe dining, with a focus on operational efficiencies and cost savings of $20 million by the end of 2026 [10][30] - Plans to open five to seven new company-owned restaurants in 2025, balancing this with asset-light growth through managed and licensed units [28][52] - The company is enhancing its franchising strategy for Benihana, responding to strong interest from franchisees [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to improve traffic and sales, particularly for STK and Benihana, despite ongoing consumer uncertainty [60][92] - The company is focused on maintaining guest frequency and brand engagement, with a strategy to innovate menus and pricing carefully [15][78] - Management highlighted the importance of a strong supply chain to navigate commodity price fluctuations and tariffs [71] Other Important Information - The company ended 2024 with over $71 million in liquid resources, including cash and undrawn credit [34] - Adjusted net loss available to common stockholders was $0.9 million, compared to adjusted net income of $5.3 million in the prior year quarter [46] Q&A Session Summary Question: What is the expected progression of same-store sales throughout the year? - Management expects gradual improvement in same-store sales, projecting a sequentially better performance in the second, third, and fourth quarters [58][60] Question: Are there any impacts from equipment availability or tariffs on new restaurant openings? - Management indicated that equipment for current openings is in place and does not foresee immediate impacts from tariffs on equipment availability [66][70] Question: How is consumer behavior affecting traffic and pricing? - Management noted cautious pricing strategies due to consumer sensitivity, with trends showing a shift towards alternative dining times like happy hour [78][79] Question: How are the new openings performing? - New openings, particularly for RA Sushi and STK, are performing well, with sales tracking positively [82][85] Question: What are the construction costs for new units? - Current construction costs are in the high $600s to close to $700 per square foot, with efforts to manage costs effectively [87][89]

Revenue and Growth - Total revenue increased by $340.6 million, or 102.3%, to $673.3 million for 2024 compared to $332.8 million for 2023, primarily due to the addition of Benihana and RA Sushi restaurants [167]. - Owned restaurant net revenues increased to $658.9 million in 2024 from $317.4 million in 2023, representing a growth of 107.5% [203]. - Total revenues for 2024 reached $673.3 million, compared to $332.8 million in 2023, marking a 102.2% increase [203]. - Owned restaurant net revenue increased by $341.5 million, or 107.6%, to $658.9 million for 2024 from $317.4 million for 2023, primarily due to the acquisition of Benihana and RA Sushi restaurants [209]. Profitability and Expenses - Restaurant operating profit increased by $57.9 million, or 114.9%, to $108.3 million for 2024, with a profit margin of 16.4% compared to 15.9% in 2023 [170]. - Net loss attributable to The ONE Group Hospitality, Inc. was $15.8 million in 2024, compared to net income of $4.7 million in 2023, mainly due to transaction and integration costs [171]. - Owned restaurant cost of sales was $138.8 million in 2024, which is 21.1% of owned restaurant net revenues, down from 23.9% in 2023 [203][205]. - Owned restaurant operating expenses totaled $411.8 million in 2024, accounting for 62.5% of owned restaurant net revenues, compared to 60.3% in 2023 [203][205]. - General and administrative expenses rose to $44.2 million in 2024, representing 6.6% of total revenues, up from 9.2% in 2023 [203][205]. - Interest expense increased significantly to $31.1 million in 2024 from $7.0 million in 2023 [203]. - Depreciation and amortization expense increased by $18.4 million to $34.1 million for 2024, primarily due to the acquisition of Benihana and RA Sushi restaurants [214]. Sales Performance - Same store sales for STK decreased by 8.7%, Benihana by 1.8%, and Grill Concepts by 13.2% for 2024 compared to the prior year [179]. - Average check per person at STK was $127 for 2024, down from $130 in 2023 [182]. - Average transaction for comparable Benihana restaurants was $111, while Grill Concepts had an average transaction of $64 in 2024 [183]. - Average comparable STK restaurant revenues were $15.5 million for 2024, down from $17.3 million in 2023 [184]. - Comparable restaurant sales decreased by 6.2% in 2024 compared to 2023 [209]. Acquisitions and Expansion Plans - The company acquired Safflower Holdings Corp. for $365.0 million, which owns most Benihana and RA Sushi restaurants in the U.S. [162]. - The company plans to expand STK to 200 restaurants globally, with an expected opening of four to six new locations annually [172]. - The company expects to grow the Benihana brand to 400 restaurants, with plans to open one to three new locations annually [174]. - Transition and integration expenses related to the Benihana acquisition amounted to $13.7 million in 2024 [203]. Cash Flow and Financing - Net cash provided by operating activities increased to $44.19 million in 2024 from $30.78 million in 2023, primarily due to cash generated from acquired restaurants [238]. - Net cash used in investing activities for 2024 was $441.39 million, including $369.8 million for the Benihana acquisition and $71.6 million for new restaurant construction [240]. - Net cash provided by financing activities was $404.34 million in 2024, primarily from borrowings under the Credit Agreement [241]. - A credit agreement was established providing a $350.0 million senior secured term loan facility and a $40.0 million revolving credit facility [165]. Market and Operational Risks - The Company is exposed to market price fluctuations in beef, seafood, produce, and other food products, which can materially impact food and beverage costs [259]. - The Company does not enter into long-term agreements for the purchase of food supplies, leading to potential unforeseen supply and cost fluctuations [259]. - Inflation impacts labor, food, operating supplies, and occupancy costs, which could significantly affect operations [260]. - The Company has maintained food costs as a percentage of revenues through procurement efficiencies and menu price increases, although future stability is uncertain [260]. - The Company does not currently use financial instruments to hedge against market price fluctuations in food products [259]. - Foreign currency exchange risk exists for operations in the UK, Europe, Canada, Mexico, and the Middle East, but exposure is not material to consolidated financial statements [262]. - The Company’s strategy includes maintaining operating margins through menu price increases and cost controls to address inflation [260]. - The Company has qualified multiple suppliers to mitigate risks associated with food product price fluctuations [259].

Back in September last year, I initiated coverage on The ONE Group Hospitality, Inc. (NASDAQ: STKS ), giving it a buy rating. My thesis revolved around the company's strong potential as it capitalized on its innovative capabilitiesI specialize in analyzing individual stocks. With a strong educational background in both finance and economics, I’ve developed a deep fascination with the stock market and the potential it offers to investors at all levels. I keep a close watch on market trends, particularly in t ...

Exhibit 99.1 The ONE Group Reports Preliminary Fourth Quarter and Full Year 2024 Sales Results Revenues Expected to Increase 145% to $221.0 Million for the Fourth Quarter Participating at the 27th Annual ICR Conference Beginning with a Fireside Chat at 11:00 AM ET Today · Total GAAP revenues are expected to be approximately $221.0 million, an approximate 145% increase from $89.9 million for the same quarter last year; and · Comparable sales* are expected to have decreased approximately 4.3% · Total GAAP rev ...

Company Overview - The ONE Group Hospitality, Inc. (STKS) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Mar 21, 2025 $07.50 Call option [1] - The company currently holds a Zacks Rank of 5 (Strong Sell) within the Retail-Restaurants industry, which is positioned in the bottom 37% of the Zacks Industry Rank [3] Analyst Sentiment - Over the past 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised their estimate downward, leading to a decrease in the Zacks Consensus Estimate from 30 cents per share to 12 cents per share [3] Options Market Dynamics - The high implied volatility suggests that options traders are anticipating a significant price movement for The ONE Group Hospitality's shares, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Options traders often seek to capitalize on high implied volatility by selling premium, aiming for the underlying stock to not move as much as initially expected by expiration [4]

Group 1 - The article highlights the challenges faced by the fast food industry, indicating that it is not the only sector experiencing tight checks and declining traffic [1] - The author emphasizes the importance of advanced analytical models and specialized valuation techniques in providing insights into restaurant stocks [1] - The coverage of the analysis includes various segments of the restaurant industry such as QSR, fast casual, casual dining, fine dining, and family dining [1] Group 2 - The author has a strong background in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership, which enhances the credibility of the analysis [1] - The company, Goulart's Restaurant Stocks, focuses on delivering detailed insights and actionable strategies to help investors make informed decisions in the restaurant sector [1] - The author has experience in accounting and business consulting across LATAM, indicating a broad understanding of the market dynamics in the region [1]

Financial Data and Key Metrics Changes - Total consolidated GAAP revenues increased by 152.3% to $194 million from $76.9 million in the same quarter last year [29] - Owned restaurant net revenue rose by 158.6% to $190.6 million from $73.7 million, primarily due to contributions from Benihana and RA Sushi [29] - Restaurant operating profit increased by 90 basis points to 13.2% compared to 12.3% in the same quarter last year [33] - Net loss available to common stockholders was $16 million or $0.52 per share, compared to a net loss of $3.1 million in the same quarter last year [38] - Adjusted EBITDA for the third quarter was $14.9 million, up from $3.1 million in the same quarter last year [39] Business Line Data and Key Metrics Changes - Comparable sales decreased by 8.8%, with Benihana down 4.2%, STK down 11.1%, and grill concepts down 70% [29] - Restaurant operating profit at Benihana was 70% [33] - Owned restaurant cost of sales as a percentage of net revenue increased by 380 basis points to 20.9% [31] - Owned restaurant operating expenses as a percentage of net revenue increased by 300 basis points to 65.9% [32] Market Data and Key Metrics Changes - The company experienced robust demand on Fridays and Saturdays across all brands, focusing on maximizing reservations and throughput during peak times [13] - The restaurant landscape is characterized by deep discounting and promotional activity, with competitors offering all-day happy hours and other promotions [51][52] Company Strategy and Development Direction - The company aims to become the global leader in Vibe Dining, focusing on driving sales through operations, marketing, and culinary strategies [7][12] - Plans to open six new venues by the end of 2024, including five company-owned restaurants and one managed STK [22] - The company is pursuing asset-light growth through franchising and management contracts, particularly for Benihana [24][76] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic headwinds and consumer uncertainty but expressed confidence in the company's portfolio and long-term vision [49] - The company anticipates improving same-store sales trends for the third and fourth quarters, projecting total GAAP revenues of $660 million to $680 million for 2024 [45] - Management expects consolidated margins to improve, targeting around 17% for 2025, with potential upside due to synergies from acquisitions [80] Other Important Information - The company finished the quarter with over $70 million in liquid resources, including cash and undrawn credit facilities [25] - Approximately $2.3 million was returned to shareholders through share repurchases during the quarter [26] Q&A Session Summary Question: Update on industry trends and competition - Management noted competitors are engaging in heavy discounting and promotions, such as all-day happy hours, and the company is responding with its own promotions and loyalty programs [51][56] Question: Development delays and construction processes - Management indicated that development timing is controlled by a focus on asset-light growth and that they have opened three restaurants in the last 60 days [58][59] Question: Potential closures and lease evaluations - Management confirmed that they will evaluate leases as they come due and will not continue with locations that do not meet profitability criteria [62][64] Question: Monthly comp breakdown and exit rates - Management acknowledged a trend of softening in the first month of each quarter, with improvements in the following months, and provided guidance for the fourth quarter [66][68] Question: Four-wall margins and growth opportunities - Management targets consolidated margins around 17% for 2025, with expectations for improvement due to operational efficiencies and synergies from acquisitions [80]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37379 | --- | --- | --- | |---------------------------------------------------------------------------|--- ...