Financial Data and Key Metrics Changes - Total GAAP revenue for the full year 2025 was approximately $805 million, representing a 20% year-over-year growth, primarily driven by the inclusion of Benihana for all twelve periods [4] - For Q4 2025, total GAAP revenue was approximately $207 million, a decrease of 6.7% from $222 million in the prior year quarter [20] - Full year 2025 comparable sales declined approximately 3.7%, reflecting continued pressure across the full-service dining segment [5] - Adjusted EBITDA attributable to The ONE Group Hospitality was $28.1 million, a decrease of 9.5% compared to $31 million in the prior year quarter [28] Business Line Data and Key Metrics Changes - Year-to-date, both Benihana and STK reported positive sales, while Kona Grill's turnaround is gaining traction, with transactions positive, representing the best same-store performance for the brand since early 2023 [8] - Consolidated comparable sales for Q4 declined approximately 1.8%, but showed about 4 points of sequential improvement from Q3 [7] - Restaurant operating profit, excluding closed locations, was $38.9 million or 19.5% of owned restaurant net revenue, improving by 10 basis points from the prior year quarter [23] Market Data and Key Metrics Changes - The company noted that consumer confidence remains at historical lows, yet they achieved positive same-store sales, indicating strong execution across their portfolio [7] - Las Vegas managed STK restaurants showed notable improvement quarter to date, reflecting effective marketing strategies [22] Company Strategy and Development Direction - The company aims to accelerate same-store sales through operational excellence, targeting a 1%-3% increase in 2026 [9] - Capital-efficient growth is a priority, with significant asset-light development agreements secured for Benihana locations in California and Florida [14] - The company is focusing on portfolio optimization, having exited six underperforming locations and planning additional conversions to improve returns [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a strengthened portfolio and expanded franchise capabilities [31] - They acknowledged the impact of external factors like rising gas prices but noted that their guidance is based on current performance trends [47] - The company projects total GAAP revenues between $840 million and $855 million for fiscal year 2026, with expectations of consolidated comparable sales growth of 1%-3% [30] Other Important Information - The company has implemented targeted cost management initiatives, including strategic adjustments to beef sourcing, which have improved margins [22] - A non-cash impairment charge of $7.2 million was recognized, primarily related to the Grille portfolio optimization [25] Q&A Session Summary Question: What are the strategic priorities for Benihana for the balance of this year? - The priority for Benihana includes marketing initiatives, digital engagement, and improving operational efficiency and table turn times [33] Question: What caused the revenue shortfall in Q4 compared to expectations? - The revenue shortfall was attributed to slower table turns at Benihana and the impact of the fiscal calendar shift [41] Question: What are the remaining cost synergies from the Benihana acquisition? - Remaining synergies include improved distribution and beef purchasing power, with ongoing efforts to consolidate other supply costs [44] Question: Have recent world events impacted traffic? - So far, there has been no significant impact on traffic due to rising gas prices, but the situation is being monitored [47] Question: Were there notable regional differences in traffic? - Regional differences in traffic narrowed in Q4, with Las Vegas performing well due to adjusted marketing strategies [51] Question: What is the expected same-store sales guidance for the full year? - The company anticipates a same-store sales increase driven by value offerings, with no immediate short-term pricing actions planned [54] Question: How is the company managing protein costs? - The company is seeing favorable conditions for frozen seafood sourcing and is monitoring other protein costs closely [55] Question: What is the timeline for the conversion of locations? - The company plans to reopen converted locations by mid-2026, with construction cycles expected to be relatively short [59]

Financial Data and Key Metrics Changes - Total GAAP revenue for the full year 2025 was approximately $805 million, representing approximately 20% growth year-over-year, primarily driven by the inclusion of Benihana for all twelve periods [4] - For the fourth quarter, total GAAP revenue was approximately $207 million, a decrease of 6.7% from $222 million in the prior year quarter [20] - Full year 2025 comparable sales declined approximately 3.7%, reflecting continued pressure across the full-service dining segment [5] - Adjusted EBITDA attributable to The ONE Group Hospitality was $28.1 million, a decrease of 9.5% compared to $31 million in the prior year quarter [28] Business Line Data and Key Metrics Changes - Year-to-date, both Benihana and STK reported positive sales, while Kona Grill's turnaround is gaining traction, with transactions positive, representing the best same-store performance for the brand since early 2023 [8] - Consolidated comparable sales for the fourth quarter declined approximately 1.8%, but all brands demonstrated sequential improvement during the quarter [7] - Restaurant operating profit, excluding closed Grille Concepts, was $38.9 million or 19.5% of owned restaurant net revenue, improving by 10 basis points from the prior year quarter [23] Market Data and Key Metrics Changes - The fourth quarter had one fewer operating day due to a fiscal calendar shift, impacting revenue comparisons [6] - Sales of managed STK in Las Vegas have notably improved quarter to date, indicating regional performance variations [22] Company Strategy and Development Direction - The company aims to accelerate same-store sales through execution, with a target of a 1%-3% increase for 2026 [9] - Capital-efficient growth is a priority, with significant asset-light development agreements secured for Benihana locations [14] - The company is focusing on operational excellence, culinary innovation, and targeted marketing as key pillars for growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a strengthened portfolio and expanded franchise capabilities [31] - Consumer confidence remains low, but the company is seeing positive trends in traffic and sales due to operational initiatives and value offerings [67] - The company projects total GAAP revenues between $840 million and $855 million for fiscal year 2026, reflecting anticipated consolidated comparable sales growth [30] Other Important Information - The company has strategically shifted protein sourcing and contracted beef pricing through September 2026, providing cost certainty and margin improvement [11] - The company plans to open 6-10 new venues in 2026, maintaining capital discipline and focusing on high-quality markets [30] Q&A Session Summary Question: What are the strategic priorities for Benihana for the balance of this year? - The priority for Benihana includes marketing initiatives, digital engagement, and improving operational efficiency and guest experience [33] Question: What caused the revenue shortfall in the fourth quarter? - The revenue shortfall was attributed to slower table turns at Benihana and the impact of the fiscal calendar shift [41][42] Question: What are the remaining cost synergies from the Benihana acquisition? - Remaining synergies include improved distribution, beef purchasing power, and consolidation of other supply costs [44][46] Question: Have recent world events impacted traffic? - So far, there has been no significant impact on traffic, but the situation is being monitored closely [47] Question: Were there notable regional differences in traffic? - Regional differences narrowed in the fourth quarter, with improved performance in Las Vegas due to targeted marketing [51][52] Question: What is the expected same-store sales guidance for the full year? - The guidance includes a pricing increase of around 5%-6% for the year, with a focus on value [53][79] Question: How is the company managing protein costs? - The company is seeing favorable conditions for frozen seafood and is managing other protein costs based on market conditions [55] Question: What is the timeline for the conversion of restaurants? - The company plans to reopen converted restaurants by July 2026, with construction cycles expected to be relatively short [59] Question: What is the outlook for G&A costs? - G&A costs are projected to increase due to anticipated bonuses and operational targets [85]

Financial Data and Key Metrics Changes - Total GAAP revenue for the full year 2025 was approximately $805 million, representing a 20% year-over-year growth, primarily driven by the inclusion of Benihana for all twelve periods [4] - For Q4 2025, total GAAP revenue was approximately $207 million, a decrease of 6.7% from $222 million in the prior year quarter [19] - Full year 2025 comparable sales declined approximately 3.7%, reflecting continued pressure across the full-service dining segment [5] - Adjusted EBITDA attributable to The ONE Group Hospitality was $28.1 million, a decrease of 9.5% compared to $31 million in the prior year quarter [27] Business Line Data and Key Metrics Changes - Year-to-date, both Benihana and STK reported positive sales, while Kona Grill's turnaround is gaining traction, with transactions positive, representing the best same-store performance for the brand since early 2023 [6][7] - Consolidated comparable sales for Q4 declined approximately 1.8%, but showed a sequential improvement of about 4 points from Q3 [6] - Restaurant operating profit, excluding closed locations, was $38.9 million or 19.5% of owned restaurant net revenue, improving by 10 basis points from the prior year quarter [23] Market Data and Key Metrics Changes - The company noted that consumer confidence remains at historical lows, yet they achieved positive same-store sales, indicating strong execution across their portfolio [6][7] - Las Vegas locations showed notable improvement, attributed to changes in marketing strategy targeting suburban areas [51] Company Strategy and Development Direction - The company aims to accelerate same-store sales through operational excellence, targeting a 1%-3% increase in 2026 [8] - Capital-efficient growth is a priority, with significant asset-light development agreements secured for Benihana locations in California and Florida [12][13] - The company is focusing on portfolio optimization, having exited six underperforming locations and planning additional conversions to Benihana or STK [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a strengthened portfolio and expanded franchise capabilities [31] - The company anticipates total GAAP revenues between $840 million and $855 million for fiscal year 2026, with projected consolidated comparable sales growth of 1%-3% [30] - Management acknowledged the impact of rising gas prices on consumer traffic but noted no immediate effects observed [46] Other Important Information - The company has implemented targeted cost management initiatives, including strategic adjustments to beef sourcing, which have improved margins [22][23] - A non-cash impairment charge of $7.2 million was recognized, primarily related to the Grille portfolio optimization [26] Q&A Session Summary Question: What are the strategic priorities for Benihana for the balance of this year? - The focus remains on marketing, digital initiatives, and improving operational efficiency, including menu downsizing and table turn times [33] Question: What caused the revenue shortfall in Q4 compared to expectations? - The shortfall was attributed to slower table turns at Benihana and the impact of the fiscal calendar shift [40] Question: What are the remaining cost synergies from the Benihana acquisition? - Remaining synergies include improved purchasing power for beef and other operational efficiencies [42][43] Question: Have recent world events impacted traffic? - No immediate impact has been observed, but the situation will be monitored closely [46] Question: Were there notable regional differences in traffic? - Differences in traffic across regions narrowed in Q4, with Las Vegas performing better due to targeted marketing [51] Question: What is the expected pricing strategy for the year? - Pricing actions are planned for Q4, with current pricing around 5%-6% for the year [53] Question: How is the company managing protein costs? - The company is seeing favorable conditions for frozen seafood and is managing other protein costs based on market conditions [55] Question: What is the timeline for restaurant conversions? - Conversions are expected to be completed by mid-2026, with construction cycles estimated at six to eight weeks [59] Question: What is the expected sales mix for delivery or off-premises? - The current sales mix for off-premises is in the low double digits, with a goal to increase it to 20% [76]

(1)2,5211,0967,9491,567Transaction and exit costs1131272568,855Loss on early debt extinguishment-- -4,149Non-cash rent (2)286339(138)1,334Grill Concepts restaurants closed or to be closed specialty cocktails in an energetic upscale atmosphere.Additional information about The ONE Group can be found at www.togrp.com.Non-GAAP DefinitionsWe have evolved our definition of non-GAAP financial measures starting in Q4 2025. We use certain non-GAAP measures in analyzing operating performance and believe that the pres ...