☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2023 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 THE ONE GROUP HOSPITALITY, INC. | (Exact name of registrant as specified in its charter) | | | --- | --- | | Delaware | 14-1961545 | | (State or other jurisdiction of incorporation or | | | organization) | (I.R.S. Em ...

The ONE Group Hospitality, Inc. (NASDAQ:STKS) Q1 2023 Earnings Conference Call May 4, 2023 4:30 PM ET Company Participants Tyler Loy - Chief Financial Officer Emanuel Hilario - President and Chief Executive Officer Conference Call Participants Tyler Prause - Stephens Inc. Nick Setyan - Wedbush Securities Inc. Mark Smith - Lake Street Capital Markets LLC Roger Lipton - Lipton Financial Services Inc. Jake Patterson - Talanta Investment Group Inc. Operator Greetings, and welcome to The ONE Group First Quarter ...

Table of Contents Commission File Number 001-37379 THE ONE GROUP HOSPITALITY, INC. | (Exact name of registrant as specified in its charter) | | | --- | --- | | Delaware | 14-1961545 | | (State or other jurisdiction of incorporation or | | | organization) | (I.R.S. Employer Identification No.) | | 1624 Market Street, Suite 311, Denver, Colorado | 80202 | | (Address of principal executive offices) | Zip Code | 646-624-2400 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mar ...

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 ...