The ONE Group Hospitality(STKS) - 2024 Q1 - Quarterly Results

Financial Performance - Total GAAP revenues increased 3.0% to $85.0 million in Q1 2024 from $82.6 million in Q1 2023[10] - GAAP net loss attributable to The ONE Group was $2.1 million, or $0.07 net loss per share, compared to GAAP net income of $2.5 million, or $0.08 per share in Q1 2023[16] - Total revenues for Q1 2024 increased to $84,995,000, up from $82,556,000 in Q1 2023, representing a growth of 2%[32] - Owned restaurant net revenue rose to $81,508,000 in Q1 2024, compared to $78,579,000 in Q1 2023, marking a 2.5% increase[32] - Adjusted EBITDA decreased 3.6% to $10.5 million in Q1 2024 from $10.9 million in Q1 2023[17] - Adjusted EBITDA for Q1 2024 was $10,481,000, down from $10,868,000 in Q1 2023, reflecting a decrease of 3.6%[40] - The net loss attributable to The One Group Hospitality, Inc. was $2,069,000 in 2024, compared to a net income of $2,606,000 in 2023[46] - Adjusted net loss income attributable to The One Group Hospitality, Inc. was $571,000 in 2024, down from an adjusted net income of $3,151,000 in 2023[46] - Adjusted net loss income per share was $(0.02) for both basic and diluted shares in 2024, compared to $0.10 in 2023[46] Sales and Operating Metrics - Comparable sales decreased 7.9% in Q1 2024, with STK same store sales down 6.8% and Kona Grill down 9.7%[11] - Restaurant Operating Profit increased 2.0% to $13.2 million, with an operating profit margin of 16.1%[13] - Operating loss for Q1 2024 was $(620,000), compared to an operating income of $4,278,000 in Q1 2023[32] - Restaurant Operating Profit for the same period was $13,156,000, representing an increase from $12,897,000 year-over-year[43] - The percentage of Restaurant Operating Profit to owned restaurant net revenue decreased to 16.1% in 2024 from 16.4% in 2023[43] - STK restaurant operating profit increased to $11,122,000 in 2024 from $10,462,000 in 2023, while its profit margin slightly decreased to 21.7% from 22.1%[44] - Kona Grill restaurant operating profit decreased to $2,061,000 in 2024 from $2,501,000 in 2023, with a profit margin decline to 6.8% from 8.1%[44] Investments and Acquisitions - The acquisition of Safflower Holdings Corp., owner of Benihana, was completed for $365 million in cash[9] - The Benihana and RA Sushi brands are expected to add over $500 million in annualized revenues and approximately $70 million in annual run-rate EBITDA before synergies[3] - The Company plans to open eight to eleven new venues in 2024, including three to four STKs and one to two Benihanas[18] Future Projections - 2024 updated guidance projects total GAAP revenues of $700 to $740 million, including the acquisition of Benihana[22] - The Company's annual run-rate total GAAP revenues at 12/31/2024 is projected to be approximately $950 million[22] Expenses and Liabilities - Owned restaurant operating expenses as a percentage of owned restaurant net revenue increased to 60.9% in Q1 2024 from 59.6% in Q1 2023[34] - Pre-opening expenses rose to $2,914,000 in Q1 2024, compared to $1,299,000 in Q1 2023, indicating increased investment in new locations[32] - Cash and cash equivalents decreased to $15,374,000 as of March 31, 2024, down from $21,047,000 at the end of 2023[36] - Total liabilities decreased to $243,219,000 as of March 31, 2024, from $249,885,000 at the end of 2023[36]