The ONE Group Hospitality(US:STKS)2025-11-06 21:09Financial Performance - Total GAAP revenues decreased by 7.1% to $180.2 million from $194.0 million in Q3 2024[8] - Consolidated comparable sales decreased by 5.9%[8] - GAAP net loss attributable to The ONE Group increased to $76.7 million from $9.3 million, primarily due to a $64.0 million increase in income tax expense[8] - Adjusted EBITDA decreased to $10.6 million from $14.9 million[8] - Total revenues for the three months ended September 28, 2025, were $180.2 million, a decrease of 7.9% compared to $194.0 million for the same period in 2024[30] - Owned restaurant net revenue was $177.4 million for the three months ended September 28, 2025, down from $190.6 million in the prior year, representing a decline of 6.9%[30] - The net loss attributable to The ONE Group Hospitality, Inc. for the three months ended September 28, 2025, was $76.7 million, compared to a net loss of $9.3 million for the same period in 2024[30] - Total GAAP revenues for the nine months ended September 28, 2025, were $598,708,000, compared to $451,464,000 for the same period in 2024, marking an increase of 32.6%[36] Operational Changes - The company plans to open five to seven new venues in 2025[7] - The company completed the closure of six underperforming Grill locations and plans to convert up to nine additional units by the end of 2026[4] - A non-cash loss on impairment of $3.4 million was recorded during Q3 2025, primarily related to underperforming restaurants[13] - Cash and cash equivalents decreased to $5.5 million as of September 28, 2025, from $27.6 million at December 31, 2024[34] - Total current assets decreased to $46.5 million as of September 28, 2025, compared to $69.3 million at December 31, 2024[34] - Total liabilities increased slightly to $762.6 million as of September 28, 2025, from $758.7 million at December 31, 2024[34] Sales and Revenue Trends - The company expects total GAAP revenues for 2025 to be between $820 million and $825 million, with consolidated comparable sales projected to decline by 3% to 2%[16] - Same Store Sales for US STK Owned Restaurants decreased by 8.3% year-to-date compared to 2023, with Q3 showing a decline of 11.4%[36] - The company experienced a decrease in Same Store Sales for Grill Concepts Owned Restaurants, which fell by 13.2% year-to-date compared to 2023[36] Profitability Metrics - Operating loss for the nine months ended September 28, 2025, was $3.5 million, an improvement from an operating loss of $3.2 million for the same period in 2024[30] - Total owned operating expenses for the three months ended September 28, 2025, were $157.3 million, a decrease of 5.3% from $166.1 million in the same period of 2024[30] - The company reported a net loss per common share of $2.75 for the three months ended September 28, 2025, compared to a loss of $0.53 per share for the same period in 2024[30] - General and administrative expenses as a percentage of total revenues increased to 7.4% for the three months ended September 28, 2025, from 6.6% in the same period of 2024[32] Restaurant Performance - Restaurant Operating Profit for the nine months ended September 28, 2025, was $86,838,000, compared to $67,012,000 for the same period in 2024, indicating a year-over-year increase of 29.5%[41] - STK restaurant operating profit for Q3 2025 is $5,879,000, down from $6,547,000 in Q3 2024, representing a decrease of 10.2%[42] - Benihana restaurant operating profit for Q3 2025 is $13,928,000, a decrease of 18.0% compared to $17,110,000 in Q3 2024[42] - Core Grill Concepts restaurant operating profit for Q3 2025 is $131,000, significantly down from $1,416,000 in Q3 2024, a decline of 90.8%[42] - STK restaurant EBITDA for Q3 2025 is $5,790,000, a decrease of 7.4% from $6,250,000 in Q3 2024[42] - Benihana restaurant EBITDA for Q3 2025 is $14,364,000, down 18.5% from $17,679,000 in Q3 2024[42] - Core Grill Concepts restaurant EBITDA for Q3 2025 is $22,000, a decline of 98.5% compared to $1,479,000 in Q3 2024[42] - Restaurant EBITDA as a percentage of owned restaurant net revenue was 11.5% for the three months ended September 28, 2025, compared to 13.0% for the same period in 2024[41] - Non-core Grill Concepts restaurant operating profit for Q3 2025 is $(12,000), improving from $(783,000) in Q3 2024[42]