Business
The ONE Group Reports Fourth Quarter 2023 and Full Year 2023 Financial Results
Grows Revenue and Adjusted EBITDA in the Quarter Opens Four Restaurants in the Quarter; Introduces 2024 Targets and Authorizes Additional Share Repurchase
About this update from The One Group Hospitality, Inc.
[{"type":"text","content":"\nGrows Revenue and Adjusted EBITDA in the Quarter\n\n\nOpens Four Restaurants in the Quarter; Introduces 2024 Targets and Authorizes Additional Share Repurchase\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 fourth quarter and full year ended December 31, 2023.\n\n\nHighlights for the fourth quarter compared to the same quarter in 2022 are as follows:\n\n\n\nTotal GAAP revenues increased 1.8% to $89.9 million from $88.3 million;\n\n\n\nComparable sales* decreased 4.3% compared to 2022 and increased 40.1% compared to 2019;\n\n\n\nGAAP net income attributable to The ONE Group was $4.6 million, or $0.15 per share ($0.17 adjusted net income per share) ****, compared to GAAP net income of $5.1 million, or $0.15 per share ($0.19 adjusted net income per share) ****\n\n\n\nRestaurant Operating Profit*** increased 3.8% to $16.5 million from $15.9 million; and\n\n\n\nAdjusted EBITDA** increased 11.3% to $14.5 million from $13.0 million.\n\n\n\nHighlights for the full year 2023 compared to 2022 are as follows:\n\n\n\nTotal GAAP revenues increased 5.1% to $332.8 million from $316.6 million;\n\n\n\nConsolidated comparable sales* decreased 2.7% and increased 43.8% compared to 2019;\n\n\n\nGAAP net income attributable to The ONE Group was $4.7 million, or $0.15 per share ($0.24 adjusted net income per share)****, compared to GAAP net income of $13.5 million, or $0.40 per share ($0.55 adjusted net income per share)****\n\n\n\nRestaurant Operating Profit*** decreased slightly to $50.4 million compared to $50.8 million;\n\n\n\nAdjusted EBITDA** was $40.1 million compared to $41.3 million.\n\n\n\n“We are pleased with our fourth quarter results, especially our focus to improve restaurant-level margins and leverage our G&A. During the fourth quarter, we increased restaurant operating profit by 40 basis points to 19.3% of Company-owned restaurant net revenues, reduced G&A by 80 basis points to 8.8% of revenue and grew adjusted EBITDA by 11.3%. As we continue our expansion, we should benefit from greater leverage through the best practices and operating efficiencies we have put in place across our organization,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.\n\n\nHilario continued, “2023 marked a year of robust unit deve...