Business
The ONE Group Reports Second Quarter 2020 Results
Provides Update on Impact of COVID-19 34 of 36 Domestic Restaurants Have Resumed In-Person Dining; 6 of 8 International STKs Have Resumed In-Person Dining
About this update from The One Group Hospitality, Inc.
[{"type":"text","content":"\nProvides Update on Impact of COVID-19\n34 of 36 Domestic Restaurants Have Resumed In-Person Dining; 6 of 8 International STKs Have Resumed In-Person Dining\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 second quarter ended June 30, 2020 and provided an update related to COVID-19.\n\n\nHighlights for the second quarter ended June 30, 2020 compared to the same period last year are as follows:\n\n\n\nTotal GAAP revenues decreased 29.4% to $16.7 million from $23.6 million;\n\n\nConsolidated comparable sales* decreased 66.7% but improved sequentially through the quarter\n\n\nComparable sales decreased 40.1% in June, 70.2% in May, and 90.2% in April\n\n\n\n\nComparable sales* for STK decreased 81.4% but improved sequentially through the quarter\n\n\nComparable sales decreased 59.9% in June, 88.1% in May, and 95.6% in April\n\n\n\n\nComparable sales* for Kona Grill decreased 52.8% but improved sequentially through the quarter\n\n\nComparable sales decreased 21.9% in June, 52.5% in May, and 85.2% in April\n\n\n\n\nGAAP net loss attributable to The ONE Group was $2.9 million, or $0.10 net loss per share, compared to GAAP net loss of $0.3 million, or $0.01 net loss per share. GAAP net loss attributable to The ONE Group during the second quarter 2020 includes $0.7 million of incremental costs related to COVID-19;\n\n\nAdjusted EBITDA** decreased to ($0.8) million compared to $2.1 million.\n\n\n\nFor July 2020, consolidated comparable sales* decreased 25%. STK comparable sales* decreased 36% and for Kona Grill comparable sales* decreased 16%. Take-out and delivery sales were 13.7% of total company-owned revenues for the month.\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-month period. This measure includes total revenue from our owned and managed locations. Revenues from locations where we do not directly control the event sales force (The W Hotel Westwood, CA) are excluded from this measure. \n\n\n** Adjusted EBITDA. We define Adjusted EBITDA as net income before interest expense, provision for income taxes, depreciation and amortization, non-cash impairment loss, non-cash rent expense, pre-opening expenses, non-recurring gains and losses, stock-bas...