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]