Business
The ONE Group Reports First Quarter 2023 Financial Results
Achieved an 11.3% Increase in Revenues Reaffirms 2023 Targets, Including Eight to Twelve New Venues DENVER--(BUSINESS WIRE)-- The ONE Group Hospitality, Inc.
About this update from The One Group Hospitality, Inc.
[{"type":"text","content":"\nAchieved an 11.3% Increase in Revenues\nReaffirms 2023 Targets, Including Eight to Twelve New Venues\n\n\n DENVER--(BUSINESS WIRE)--\nThe ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today reported its financial results for the first quarter ended March 31, 2023.\n\n\nHighlights for the first quarter compared to the same period in 2022 are as follows:\n\n\n\nTotal GAAP revenues increased 11.3% to $82.6 million from $74.2 million;\n\n\n\nComparable sales* increased 1.6%;\n\n\n\nGAAP net income attributable to The ONE Group was $2.6 million, or $0.08 per share ($0.10 adjusted net income per share)****, compared to GAAP net income of $3.7 million, or $0.11 per share ($0.15 adjusted net income per share)****\n\n\n\nRestaurant Operating Profit*** decreased 1.1% to $12.9 million from $13.0 million; and\n\n\n\nAdjusted EBITDA** increased 1.0% to $10.9 million from $10.8 million.\n\n\n\n“We are pleased with our first quarter results which include double-digit top-line growth, positive comparable sales, and growth in adjusted EBITDA. We are particularly happy with STK restaurant level margins in excess of 22% for the quarter. Importantly, we are still on track with our robust development pipeline, and we remain confident in our full year 2023 targets and are reiterating them today,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.\n\n\nHilario continued, “We expect to open eight to twelve new venues this year, representing our strongest development pipeline in history. During the first quarter, we opened a new, redesigned Kona Grill in Columbus and a rooftop bar at our existing STK in Scottsdale. We view our addressable market as at least 400 restaurants including 200 STK restaurants globally and 200 Kona Grills domestically with best-in-class ROIs of between 40% and 50% for new Company-owned STKs and Kona Grills, respectively.”\n\n\n*Comparable sales represent total U.S. food and beverage sales at owned and managed units opened for at least a full 18-months. This measure includes total revenue from our owned and managed locations. The Company monitors sales growth at its established restaurant base in addition to growth that results from restaurant acquisitions.\n\n\n**We define Adjusted EBITDA as net income before interest expense, provision for income taxes, depreciation and amortiza...