Business
The ONE Group Reports Second Quarter 2024 Financial Results
Completed Acquisition of Benihana and RA Sushi in May Increased Revenue to $172.5 Million or 107% DENVER--(BUSINESS WIRE)-- The ONE Group Hospitality, Inc.
About this update from The One Group Hospitality, Inc.
[{"type":"text","content":"\nCompleted Acquisition of Benihana and RA Sushi in May\n\n\nIncreased Revenue to $172.5 Million or 107%\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 second quarter ended June 30, 2024.\n\n\nHighlights for the second quarter 2024 compared to the same quarter in 2023 are as follows (the prior year quarter excludes any contribution from the recent acquisition of Benihana, which closed in May 2024):\n\n\n\nTotal GAAP revenues increased 106.8% to $172.5 million from $83.4 million;\n\n\n\nComparable sales* decreased 7.0%;\n\n\n\nGAAP net loss available to common stockholders was $11.5 million, or $0.36 net loss per share ($0.08 adjusted net income per share) ****, compared to GAAP net income available to common stockholders of $0.6 million, or $0.02 net income per share ($0.06 adjusted net income per share) ****\n\n\n\nRestaurant Operating Profit*** increased 151.3% to $30.0 million from $11.9 million;\n\n\n\nRestaurant Operating Profit Margin*** increased 280 basis points to 17.7% from 14.9%; and\n\n\n\nAdjusted EBITDA** increased 180.6% to $23.9 million from $8.5 million.\n\n\n\n\"We are pleased to be building lasting relationships with our guests through unforgettable VIBE dining experiences while generating industry leading AUVs. Notably, the cost-saving initiatives we put in place last year coupled with our strong new restaurant performance drove restaurant level profit and restaurant level margin to increase at Kona Grill and stay relatively flat at STK, despite the challenging same store sales environment.”\n\n\n“In May, we completed our acquisition of the Benihana and RA Sushi brands and welcomed nearly 6,500 new teammates. We have since begun integrating them into our Company and have already started realizing synergies in G&A, purchasing and operations. To date, we have realized approximately $9 million in G&A synergies since the closing and over the next two years, we expect to achieve another $11 million in G&A, supply chain and other operational synergies for a total of $20 million in annual synergies as we leverage our larger scale, combine our expertise, and enhance our capabilities to develop a best-in-class supply chain across our now-expanded portfolio.”\n\n\nHilario concluded, “We have a strong pipelin...