THEONE INVESTOR PRESENTATION MARCH 2023 Historical GAAP Revenue ($ in MM) 5380.0 5360.0 5316.6 5277. $141.9 5120.3 $74.0 572A 568.9 2016 2017 2018 2019 2020 2021 2022 2023 Guidance Company-owned Restaurant Level Margin Historical Adjusted EBITDA ($ in MM) $54.0 550.0 $42.7 $413 $14.3 $10.5 $9.6 $7.0 $4.5 2016 2018 2019 2021 2022 2023 2017 2020 Guidance Adjusted G&A % of GAAP Revenue 14.39 13.6% 11.5% 8.6% 8.4% 7.9% 7.9% 7.6% 2016 2017 2018 2019 2022 2023 2020 2021 Guidance "CAGR and Adjusted G&A % based on ...

The ONE Group Hospitality, Inc. (NASDAQ:STKS) Q4 2022 Earnings Conference Call March 9, 2023 4:30 PM ET Company Participants Tyler Loy - Chief Financial Officer Manny Hilario - Chief Executive Officer Conference Call Participants Mark Smith - Lake Street Capital Tyler Prause - Stephens Nick Setyan - Wedbush Securities Roger Lipton - Lipton Financial Operator Good day and welcome to The ONE Group Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. ...

Financial Performance - Total revenue increased by $39.5 million, or 14.2%, to $316.6 million for 2022 compared to $277.2 million for 2021[137] - Net income attributable to The ONE Group Hospitality, Inc. was $13.5 million in 2022, down from $31.3 million in 2021[142] - Adjusted EBITDA for 2022 was $41,324, slightly down from $43,194 in 2021, reflecting a decrease of 4.3%[178] - Restaurant Operating Profit was $50,805, down from $52,407 in 2021, resulting in a margin of 16.9% compared to 19.8% the previous year[179] - Owned restaurant net revenue increased to $300,859, up from $264,404 in 2021, representing a growth of 13.8%[174] - Management and license fee revenues increased by $3.0 million, or 23.5%, to $15.8 million in 2022, attributed to strong performance at managed restaurants in North America[184] Sales and Growth - Same store sales increased by 10.8% in 2022 compared to 2021, with STK same store sales up by 17.1% and Kona Grill same store sales up by 2.5%[137] - Same store sales for STK increased by 69.1% and for Kona Grill by 26.3% on a three-year basis compared to 2019[140] - The company plans to open 8 to 12 new venues in 2023, including a Kona Grill in Columbus, Ohio, which opened in January 2023[132] - The company expects to expand STK to 200 restaurants globally, with plans to open 5 to 6 STKs annually[143] - Kona Grill is projected to grow to 200 restaurants, with 3 to 5 openings annually, including two under construction in Riverton, Utah, and Phoenix, Arizona[145] Expenses and Costs - Pre-opening expenses increased significantly to $5,519 from $1,037 in 2021, indicating a rise of 431.5%[174] - Owned restaurant cost of sales as a percentage of owned restaurant net revenue decreased to 25.0% from 25.5%[175] - Owned restaurant operating expenses increased by $30.2 million, or 20.9%, to $174.7 million in 2022, with operating costs as a percentage of net revenue rising to 58.1%[186] - Food and beverage costs for owned restaurants rose by $7.9 million, or 11.7%, to $75.4 million in 2022, with cost of sales as a percentage of revenues decreasing to 25.0%[185] - General and administrative costs increased by $3.5 million, or 13.7%, to $29.1 million in 2022, maintaining a consistent percentage of revenues at 9.2%[187] Cash Flow and Financing - Net cash provided by operating activities was $25.3 million for 2022, a decrease from $31.0 million in 2021, primarily due to payments on accrued expenses[215] - Net cash used in investing activities for 2022 was $32.7 million, mainly for the construction of new restaurants compared to $11.5 million in 2021[216] - Net cash provided by financing activities was $39.1 million for 2022, compared to a net cash used of $20.3 million in 2021, driven by a $50.0 million borrowing under the amended Credit Agreement[217] - As of December 31, 2022, the company had cash and cash equivalents of $55.1 million and long-term debt of $74.3 million[197] - The company entered into a Fourth Amendment to the Credit Agreement, allowing for a new $50.0 million delayed draw term facility for acquisitions and capital expenditures[202] Market and Economic Conditions - The company experienced inflationary pressures in 2022, impacting labor, food, and occupancy costs, with a strategy to maintain operating margins through menu price increases and cost controls[237] - The company is exposed to market price fluctuations in food product prices, which can materially impact food and beverage costs[236] - The company is exposed to market risk from changes in interest rates, with borrowings under the Credit Agreement subject to SOFR plus a 6.5% margin[238] - The company faces foreign currency exchange rate risk in operations across the UK, Italy, Canada, Mexico, and the Middle East[239] - The company currently does not use financial instruments to hedge against foreign currency exchange rate changes[239]

THEONE OF GROWTH +550 bps 17.3% 11.8% FY 2019 Q3 2022 TTM -Fine Dining Steak Index STK 81.9% - 70.6% 63.0% 62 5% 00.0% 64.3% 26.2% 20.4% 17.8% 14.7% 10.4% 8.1% 1.9% (17,35) Adjusted G&A % of GAAP Revenue STK Same Store Sales Growth vs. 2019 11.5% 2018 Kona Grill Same Store Sales Growth vs. 2019 Total Venues Count Potential Historical Venue Growth 63 24 12:21:0017 Current | --- | --- | |----------------------------|---------------| | | | | SELECT 2023 Expected Units | | | STK | Kona Grill | | Charlotte, NC | ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2022 was $73 million, an increase of 1.6% from $71.9 million in Q3 2021 [19] - Owned restaurant net revenue increased to $69.5 million, up 2.3% from $68 million in the same quarter last year [19] - Adjusted EBITDA for Q3 2022 was $7.1 million, compared to $10 million in Q3 2021 [25] - Net income attributable to the ONE Group was $0.4 million or $0.01 per share, down from $11.6 million or $0.34 per share in Q3 2021 [24] Business Line Data and Key Metrics Changes - STK comparable sales increased by 3.5% compared to Q3 2021, while Kona Grill saw a decrease of 3.6% [20] - STK's average weekly sales were $290,000, while Kona Grill's were $95,000 [6] - Restaurant operating profit at STK was 18.5%, while Kona Grill's was 6.4% [21] Market Data and Key Metrics Changes - Consolidated comparable sales increased by 0.5% for the quarter compared to 2021 [19] - Compared to 2019, consolidated comparable sales increased by 45.6%, with STK up 70.6% and Kona Grill up 22.3% [20] Company Strategy and Development Direction - The company plans to open 7 new units in the second to fourth quarters of 2022, including 3 company-owned STKs and 3 company-owned Kona Grills [15] - The company is focusing on high-volume, high-margin brands with compelling returns, targeting a total addressable market of at least 400 restaurants [17] - The company is confident in its pricing power and plans to implement further price increases in Q4 2022 [12] Management's Comments on Operating Environment and Future Outlook - Management noted that inflationary pressures outpaced price increases during Q3, but they expect margins to improve in Q4 due to pricing adjustments [13][49] - The company is optimistic about the upcoming holiday season and sees an increase in corporate event bookings [51] - Management highlighted the strong performance of the new STK San Francisco location, which is exceeding revenue expectations [64] Other Important Information - Hurricane Ian negatively impacted sales, particularly in Florida, which accounts for 14% of the sales base [8][44] - The company repurchased 500,000 shares of common stock during Q3 2022 [26] Q&A Session Summary Question: Insights on Kona Grill's performance - Management indicated that Kona Grill's comparable sales were down 3%, with traffic down 7-8%, but check sizes increased due to higher steak sales [30] Question: Impact on Kona Grill's operating profit - Management attributed margin pressure primarily to inflation and labor costs, with pricing adjustments planned for Q4 [31] Question: Staffing levels in preparation for Q4 - Management confirmed they were fully staffed in Q3 to prepare for the busy Q4 season [35] Question: Real estate opportunities - Management noted significant availability of real estate and a strong pipeline for new openings [37] Question: Corporate event business recovery - Management reported an increase in corporate event bookings, particularly for full venue buyouts, which are profitable [51] Question: Commodity costs and supply chain - Management observed stabilization in labor costs but continued pressure on core commodities like beef and seafood [43][58] Question: Financial outlook for Q4 and beyond - Management expressed optimism about returning to growth in EBITDA in Q4, supported by new store openings and pricing adjustments [66]

THE ONE GROUP HOSPITALITY, INC. 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, 2022 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 If an emerging growth company, indicate by a check mark if the regi ...

One Group Hospitality, Inc. (NASDAQ:STKS) Q2 2022 Earnings Conference Call August 4, 2022 4:30 PM ET Company Participants Tyler Loy - CFO Emanuel Hilario - President, CEO & Director Conference Call Participants Nicole Miller - Piper Sandler & Co. Nerses Setyan - Wedbush Securities Mark Smith - Lake Street Capital Markets Operator Greetings, and welcome to the ONE Group Second Quarter 2022 Earnings Conference Call. [Operator Instructions]. As a reminder, this conference call is being recorded. I'd now like t ...

Revenue Performance - Total revenues increased by $10.4 million, or 14.6%, to $81.1 million for the three months ended June 30, 2022, compared to $70.8 million for the same period in 2021[88]. - Total revenues increased by $34.1 million, or 28.1%, to $155.3 million for the six months ended June 30, 2022, compared to $121.2 million for the same period in 2021[90]. - Total revenues for the three months ended June 30, 2022, reached $81.125 million, compared to $70.760 million for the same period in 2021, reflecting a significant growth[96]. Same Store Sales - Same store sales increased by 12.8% in Q2 2022 compared to Q2 2021, with STK same store sales up by 19.8% and Kona Grill same store sales up by 3.7%[88]. - Comparable restaurant sales increased by 12.8% for the second quarter of 2022 compared to the second quarter of 2021, indicating strong sales performance[103]. - Comparable restaurant sales increased by 26.3% in the first half of 2022[114]. Operating Profit and Income - Restaurant operating profit decreased by $2.6 million, or 16.7%, to $12.8 million for the three months ended June 30, 2022, compared to $15.3 million for the same period in 2021[89]. - Operating income for the three months ended June 30, 2022, was $5.753 million, down from $7.756 million in the same period of 2021[100]. - Operating income for the six months ended June 30, 2022, was $10.0 million, compared to $8.6 million for the same period in 2021[90]. Net Income and EBITDA - Net income attributable to The One Group Hospitality, Inc. was $4.303 million for the three months ended June 30, 2022, compared to $13.836 million for the same period in 2021[99]. - Adjusted EBITDA for the three months ended June 30, 2022, was $10.561 million, compared to $13.205 million for the same period in 2021[99]. Expenses and Costs - Food and beverage costs for owned restaurants increased by $8.8 million, or 30.0%, to $38.0 million for the six months ended June 30, 2022, from $29.2 million for the same period in 2021[116]. - Owned restaurant operating expenses increased by $20.5 million to $83.7 million for the six months ended June 30, 2022, from $63.2 million for the same period in 2021[117]. - General and administrative costs increased by $2.8 million, or 25.0%, to $14.1 million for the six months ended June 30, 2022, compared to $11.3 million for the same period in 2021[118]. Cash Flow and Financing - Net cash provided by operating activities was $14.9 million for the six months ended June 30, 2022, compared to $19.8 million for the same period in 2021[136]. - Net cash used in financing activities for the six months ended June 30, 2022, was $1.8 million, with $1.4 million allocated to employee taxes for shares withheld upon vesting of restricted stock units[138]. - Net cash provided by financing activities for the six months ended June 30, 2021, was $2.6 million, primarily from proceeds of stock options and warrants[138]. Future Plans and Growth Strategy - The company plans to open at least nine new venues in 2022, including two STK and two Kona Grill restaurants, and three licensed units in Texas for takeout and delivery[83]. - The company aims to increase same store sales and improve operating efficiency as part of its growth strategy[86]. COVID-19 Impact - COVID-19 related expenses were $0.2 million for Q2 2022, down from $1.1 million in Q2 2021, reflecting improved operational conditions[84]. - COVID-19 related expenses decreased to $2.5 million for the six months ended June 30, 2022, from $2.6 million in the prior year period[121]. Assets and Capital Expenditures - Total assets as of June 30, 2022, amounted to $235.227 million, an increase from $229.835 million as of December 31, 2021[96]. - Capital asset additions for the three months ended June 30, 2022, totaled $7.641 million, compared to $2.758 million for the same period in 2021[96]. - Capital expenditures were $12.1 million for the six months ended June 30, 2022, primarily for the construction of new STK and Kona Grill restaurants[126]. Accounting and Impairment Testing - The company has added a critical accounting estimate regarding indefinite-lived intangible assets, which are tested for impairment annually or on an interim basis[141]. - Qualitative factors considered for impairment testing include historical financial performance, expected future cash flows, and macroeconomic conditions[142]. - Quantitative assessments for impairment require estimates on future cash flows, including projected revenue growth and operating expenses[143]. - Changes in economic conditions and operating performance may affect the company's ability to realize future cash flows[143]. - The company does not expect recent accounting pronouncements to significantly impact its consolidated financial position or results of operations[140]. - As a "smaller reporting company," the company is not required to provide detailed market risk disclosures[144].

The ONE Group Hospitality Inc. (NASDAQ:STKS) Q1 2022 Earnings Conference Call May 6, 2022 8:00 AM ET Company Participants Tyler Loy - CFO Manny Hilario - President & CEO Conference Call Participants Nicole Miller - Piper Sandler Nick Setyan - Wedbush Securities Mark Smith - Lake Street Capital Markets Operator Good morning, everyone. And welcome to The ONE Group First Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, ...

PART I – Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q1 2022 show total assets of **$236.6 million**, net income of **$3.7 million**, and cash of **$28.6 million** - The company operates and licenses **59 venues** as of March 31, 2022, including **22 STK restaurants**, **24 Kona Grills**, and **13 other F&B venues**, with STK and Kona Grill as primary brands[19](index=19&type=chunk)[20](index=20&type=chunk) - COVID-19 related expenses were **$2.3 million** for Q1 2022, primarily for sanitation, supplies, and safety measures, with all restaurants currently open for in-person dining[21](index=21&type=chunk) Condensed Consolidated Balance Sheet (in thousands) | Account | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $44,800 | $42,927 | | **Total Assets** | **$236,574** | **$229,835** | | **Total Current Liabilities** | $42,836 | $42,264 | | **Total Liabilities** | $172,055 | $169,310 | | **Total Stockholders' Equity** | $65,577 | $61,434 | | **Total Liabilities and Equity** | **$236,574** | **$229,835** | Condensed Consolidated Statement of Operations (in thousands) | Metric | Q1 2022 (in thousands) | Q1 2021 (in thousands) | | :--- | :--- | :--- | | **Total Revenues** | **$74,181** | **$50,482** | | Owned restaurant net revenue | $70,516 | $49,168 | | Management, license and incentive fee revenue | $3,665 | $1,314 | | **Operating Income** | **$4,202** | **$857** | | **Net Income Attributable to The One Group** | **$3,670** | **$70** | | **Diluted Net Income Per Share** | **$0.11** | **$0.00** | Condensed Consolidated Statement of Cash Flows (in thousands) | Activity | Q1 2022 (in thousands) | Q1 2021 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,823 | $6,986 | | Net cash used in investing activities | ($4,450) | ($2,615) | | Net cash used in financing activities | ($253) | ($304) | | **Net increase in cash and cash equivalents** | **$5,030** | **$4,050** | | **Cash and cash equivalents, end of period** | **$28,644** | **$28,435** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q1 2022 financial performance, driven by **46.9% revenue growth** and **45.1% same-store sales increase**, with **Adjusted EBITDA reaching $10.8 million** and ongoing growth strategies - The company's growth strategy focuses on expanding STK and Kona Grill restaurants, pursuing new F&B hospitality projects, increasing same-store sales, and potential acquisitions, with plans to open at least **nine new venues in 2022**[81](index=81&type=chunk)[85](index=85&type=chunk) Q1 2022 vs Q1 2021 Performance Highlights | Metric | Q1 2022 | Q1 2021 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $74.2M | $50.5M | +46.9% | | Same-Store Sales (YoY) | +45.1% | N/A | N/A | | - STK SSS | +66.5% | N/A | N/A | | - Kona Grill SSS | +21.9% | N/A | N/A | | Operating Income | $4.2M | $0.9M | +$3.3M | | Restaurant Operating Profit | $13.0M | $9.3M | +40.8% | Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Q1 2022 (in thousands) | Q1 2021 (in thousands) | | :--- | :--- | :--- | | Net income (loss) | $3,521 | ($60) | | EBITDA | $6,917 | $3,556 | | **Adjusted EBITDA** | **$10,678** | **$6,446** | | **Adjusted EBITDA attributable to The ONE Group** | **$10,756** | **$6,499** | - As of March 31, 2022, the company had **$28.6 million in cash and cash equivalents** and **$24.6 million in long-term debt**, with **$10.6 million available** on its revolving credit facility[110](index=110&type=chunk) - Capital expenditures in Q1 2022 totaled **$4.5 million**, comprising **$1.7 million** for new restaurant construction (STK and Kona Grill) and **$2.8 million** for existing restaurants and technology initiatives[111](index=111&type=chunk)[124](index=124&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a 'smaller reporting company,' the company is not required to provide quantitative and qualitative disclosures about market risk - As a 'smaller reporting company,' the company is not required to provide quantitative and qualitative disclosures about market risk[127](index=127&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of March 31, 2022, due to two material weaknesses in internal control over financial reporting, with ongoing remediation efforts - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of March 31, 2022[129](index=129&type=chunk) - The ineffectiveness stems from two material weaknesses in internal control over financial reporting previously identified in the 2021 Form 10-K, which did not result in a material misstatement[129](index=129&type=chunk) - Remediation efforts to address the material weaknesses are ongoing, and the weaknesses cannot be considered remediated until controls have operated effectively for a sufficient period[130](index=130&type=chunk)[131](index=131&type=chunk) PART II – Other Information [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal claims common in the hospitality industry, with management believing their ultimate resolution will not materially adversely affect financial position or results - The company is subject to claims common to the restaurant industry, such as those regarding compliance with labor laws and regulations[133](index=133&type=chunk) - Management does not believe the ultimate resolution of current legal matters will have a material adverse effect on the company's consolidated financial statements[133](index=133&type=chunk)[135](index=135&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2021 Annual Report on Form 10-K - There have been no material changes to the risk factors as disclosed in the Form 10-K for the year ended December 31, 2021[136](index=136&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[137](index=137&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate documents and required CEO and CFO certifications - The report includes required exhibits such as CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, and Inline XBRL data files[138](index=138&type=chunk)