Financial Performance - Total revenues increased by $89.1 million, or 106.8%, to $172.5 million for the three months ended June 30, 2024, compared to $83.4 million for the same period in 2023, primarily due to the Benihana Acquisition[72]. - Same store sales decreased by 7.0% in the second quarter of 2024 compared to the second quarter of 2023[72]. - Restaurant operating profit increased by $18.1 million, or 151.3%, to $30.0 million for the three months ended June 30, 2024, compared to $11.9 million for the same period in 2023[72]. - Total revenues increased by $91.6 million, or 55.2%, to $257.5 million for the six months ended June 30, 2024, compared to $165.9 million for the same period in 2023[72]. - Restaurant operating profit increased by $18.3 million to $43.1 million for the six months ended June 30, 2024, compared to $24.8 million for the same period in 2023[72]. - The operating income for the three months ended June 30, 2024, was $1.654 million, a decrease from $6.323 million in the same period of 2023[75]. - Net loss attributable to The ONE Group Hospitality, Inc. for the three months ended June 30, 2024, was $6.929 million, compared to a net income of $3.174 million in the same period of 2023[75]. - Owned restaurant net revenue for the six months ended June 30, 2024, reached $250.529 million, compared to $158.502 million in the same period of 2023, marking a 58% increase[75]. - Adjusted EBITDA for the three months ended June 30, 2024, was $23.940 million, compared to $8.532 million for the same period in 2023[81]. Costs and Expenses - Total costs and expenses for the three months ended June 30, 2024, were $170.840 million, up from $81.348 million in the same period of 2023, reflecting a rise of 109.4%[75]. - Owned restaurant cost of sales for the three months ended June 30, 2024, was 21.2% of total revenues, down from 24.0% in the same period of 2023[77]. - General and administrative expenses, including stock-based compensation, were 6.2% of total revenues for the three months ended June 30, 2024, compared to 9.6% in the same period of 2023[77]. - Cost of sales for owned restaurants increased by $16.5 million, or 43.4%, to $54.6 million for the six months ended June 30, 2024, primarily due to the acquisition of Benihana and RA Sushi[90]. - General and administrative costs rose by $2.7 million, or 17.3%, to $18.2 million for the six months ended June 30, 2024, attributed to increased headcount from the Benihana acquisition[90]. - Depreciation and amortization expense increased to $13.3 million for the six months ended June 30, 2024, compared to $7.2 million for the same period in 2023, mainly due to the acquisition of Benihana and RA Sushi[90]. - Transaction and exit costs amounted to $8.3 million for the six months ended June 30, 2024, primarily related to the Benihana acquisition[90]. Acquisition and Expansion - The Benihana Acquisition was completed for $365.0 million on May 1, 2024, which includes most of the Benihana restaurants and all RA Sushi restaurants in the U.S.[68]. - The acquisition of Benihana and RA Sushi restaurants contributed $88.7 million in revenues for the two-month period owned by the company[86]. - The company intends to open eight to eleven new venues in 2024[66]. - The company plans to continue focusing on market expansion and new product development to drive future growth[75]. - The company opened STK Washington DC in March 2024 and plans to open a RA Sushi in Plantation, FL in July 2024, contributing to its market expansion strategy[100]. - The company expects to open an additional four to five Company-owned restaurants over the next six months[94]. Financing and Cash Flow - A credit agreement was entered into providing a $350.0 million senior secured term loan facility and a $40.0 million senior secured revolving credit facility[70]. - Interest expense, net, for the three months ended June 30, 2024, was $7.865 million, compared to $1.642 million for the same period in 2023[80]. - Interest expense, net was $7.9 million for the three months ended June 30, 2024, compared to $1.6 million for the same period in 2023, due to borrowing $350.0 million for the Benihana acquisition[88]. - Net cash provided by operating activities was $6.6 million for the six months ended June 30, 2024, down from $13.1 million in the same period of 2023[100]. - Net cash used in investing activities was $403.5 million for the six months ended June 30, 2024, primarily due to the Benihana acquisition costing $368.6 million[100]. - Net cash used in financing activities for the six months ended June 30, 2024, was $408.8 million, consisting of net proceeds from borrowings ($333.8 million) and issuance of preferred stock and warrants ($138.9 million), partially offset by repayment of Goldman Sachs debt ($73.6 million)[100]. - As of June 30, 2024, the company had $32.8 million in cash and cash equivalents and $350.0 million in long-term debt[94]. Legal and Compliance - The company is subject to class action lawsuits related to compliance with labor laws, which may require significant management attention and financial resources[104]. - The company believes that accrual and disclosure for legal matters are adequately provided for in its consolidated financial statements[104]. - The company intends to exclude the acquired Benihana business from its assessment of internal controls over financial reporting for the year ended December 31, 2024[103]. - The company concluded that its disclosure controls and procedures were effective as of June 30, 2024[102]. - The company has implemented new processes and internal controls following the Benihana acquisition to enhance financial reporting[103].

Exhibit 99.1 The ONE Group Reports Second Quarter 2024 Financial Results Completed Acquisition of Benihana and RA Sushi in May Increased Revenue to $172.5 Million or 107% Denver, CO – (BUSINESS WIRE) – August 6, 2024 – 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 co ...

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks. One stock to keep an eye on is The ONE Group Hospitality (STKS) . STKS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.27. This compares to it ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental ...

Core Viewpoint - The ONE Group Hospitality, Inc. (STKS) shows potential for significant upside, with a mean price target of $7.67 indicating a 47.5% increase from its current price of $5.20 [1] Price Targets and Estimates - The mean estimate consists of three short-term price targets with a standard deviation of $1.53, suggesting variability among analysts [2] - The lowest estimate of $6 indicates a 15.4% increase, while the highest estimate suggests a 73.1% surge to $9 [2] - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement [7] Earnings Estimates - Analysts are optimistic about STKS's earnings prospects, as indicated by a positive trend in earnings estimate revisions [4][9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 112.5%, with no negative revisions [10] - STKS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11]

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potent ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights The ONE Group Hospitality (STKS) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [1][2][7]. Company Overview - The ONE Group Hospitality (STKS) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock is currently trading with a P/E ratio of 22.78, which is lower than the industry average P/E of 23.11 [4]. - STKS's Forward P/E has fluctuated between a high of 30.03 and a low of 7.41 over the past year, with a median of 10.88 [4]. Valuation Metrics - The P/S ratio for STKS is 0.52, compared to the industry average P/S of 0.86, suggesting it is undervalued based on sales performance [5]. - The P/CF ratio for STKS stands at 9.97, significantly lower than the industry average P/CF of 18.24, indicating strong cash flow relative to its valuation [6]. - Over the past 12 months, STKS's P/CF has ranged from a high of 10.98 to a low of 5.19, with a median of 8.86 [6]. Investment Potential - The combination of favorable valuation metrics and a strong earnings outlook positions The ONE Group Hospitality as one of the market's strongest value stocks [7].

The ONE Group Hospitality, Inc. (NASDAQ:STKS) Q1 2024 Earnings Conference Call May 7, 2024 4:30 PM ET Company Participants Tyler Loy - Chief Financial Officer Manny Hilario - President & Chief Executive Officer Conference Call Participants Jim Salera - Stephens Inc. Mark Smith - Lake Street Michael Symington - Wedbush Roger Lipton - Lipton Financial Operator Greetings, and welcome to The ONE Group First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief ...

Revenue Performance - Total revenue increased by $2.4 million, or 3.0%, to $85.0 million for the three months ended March 31, 2024, compared to $82.6 million for the same period in 2023[99]. - Total owned restaurant net revenue was $81.5 million for Q1 2024, compared to $78.6 million for Q1 2023[103]. - Owned restaurant net revenue increased by $2.9 million, or 3.7%, to $81.5 million for the three months ended March 31, 2024, compared to $78.6 million for the same period in 2023[114]. Sales Performance - Same-store sales decreased by 7.9% in Q1 2024, with STK same-store sales down 6.8% and Kona Grill down 9.7%[99]. - Comparable restaurant sales decreased by 7.9% in Q1 2024 compared to Q1 2023[114]. - Management and license fee revenues decreased by $0.5 million, or 12.3%, to $3.5 million for Q1 2024 from $4.0 million in Q1 2023[115]. Profitability - Restaurant operating profit increased by $0.3 million, or 2.0%, to $13.2 million, representing 16.1% of owned restaurant net revenue[100]. - Operating income decreased by $4.9 million to an operating loss of $0.6 million for Q1 2024, primarily due to higher depreciation and preopening costs[101]. - Net loss attributable to The ONE Group Hospitality, Inc. was $2.1 million for Q1 2024, compared to net income of $2.6 million in Q1 2023[103]. Expenses - General and administrative expenses were $7.5 million for Q1 2024, slightly up from $7.5 million in Q1 2023[103]. - Owned restaurant operating expenses increased by $2.8 million to $49.6 million, with operating costs as a percentage of owned restaurant net revenue increasing from 59.6% to 60.9%[117]. - Depreciation and amortization expenses increased to $5.3 million in Q1 2024 from $3.7 million in Q1 2023, primarily due to new venue openings[119]. - Pre-opening expenses for Q1 2024 were $2.9 million, up from $1.3 million in Q1 2023[120]. Debt and Financing - The company entered into a credit agreement providing a $350.0 million senior secured term loan facility and a $40.0 million revolving credit facility[97]. - Interest expense increased to $2.1 million in Q1 2024 from $1.8 million in Q1 2023, with a weighted average interest rate of 12.3%[125]. - The company may borrow on its revolving credit facility or issue equity to support ongoing business and fund additional expansion[128]. Cash Flow and Investments - Net cash provided by operating activities increased to $10.4 million for the three months ended March 31, 2024, from $6.6 million in the same period of 2023[140]. - Net cash used in investing activities was $15.8 million for the three months ended March 31, 2024, compared to $11.9 million for the same period in 2023[141]. - Capital expenditures for the three months ended March 31, 2024, were $15.8 million, with $14.1 million allocated to the opening of five new restaurants[129]. Future Plans - The company plans to open six to eight new STK or Kona Grill venues in 2024[88]. - The company expects to receive between $2.2 million and $2.8 million in landlord contributions in the next three months[129]. - The company limits the number of owned venues under construction to four restaurants to manage cash requirements[134]. Financial Position - As of March 31, 2024, the company had cash and cash equivalents of $15.4 million and long-term debt of $73.5 million[128]. - General and administrative costs were $7.5 million for both Q1 2024 and Q1 2023, with a slight decrease in percentage from 9.1% to 8.9%[118]. - Net cash used in financing activities was $0.2 million for the three months ended March 31, 2024, compared to $1.1 million in the same period of 2023[142].

Exhibit 99.1 The ONE Group Reports First Quarter 2024 Financial Results Grows Revenue 3.0% and Opens STK Washington DC During the Quarter Completed Acquisition of Saf lower Holdings Corp., the Owner of Benihana Inc. on May 1st Updates 2024 Targets to Include Acquisition Denver, CO – (BUSINESS WIRE) – May 7, 2024 – The ONE Group Hospitality, Inc. ("The ONE Group" or the "Company") (Nasdaq: STKS) today reported its financial results for the first quarter ended March 31, 2024. Highlights for the first quarter ...