Business
The ONE Group Reports Third Quarter 2020 Results
Sequential Improvement in Comparable Sales Trends in the Second Quarter Continue Through the Third Quarter Company Reports Positive Operating Income for the
About this update from The One Group Hospitality, Inc.
[{"type":"text","content":"\nSequential Improvement in Comparable Sales Trends in the Second Quarter Continue Through the Third Quarter\n\nCompany Reports Positive Operating Income for the Third Quarter and Positive Comparable Sales for October\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 third quarter ended September 30, 2020 and provided an update related to COVID-19.\n\nHighlights for the third quarter ended September 30, 2020 compared to the same period last year are as follows:\n\n\nTotal GAAP revenues increased 79.0% to $39.6 million from $22.1 million;\n\n\nConsolidated comparable sales* decreased 15.6% but improved sequentially through the quarter\n\n\nComparable sales decreased 24.8% for July, 17.2% for August, and 4.3% for September;\n\n\n\n\nComparable sales* for STK decreased 24.2% but improved sequentially through the quarter\n\n\nComparable sales decreased 34.9% for July, 28.2% for August, and 10.4% for September;\n\n\n\n\nComparable sales* for Kona Grill decreased 7.3% but improved sequentially through the quarter\n\n\nComparable sales decreased 16.2% for July and 6.7% for August, and increased 2.3% for September;\n\n\n\n\nGAAP net loss attributable to The ONE Group was $0.9 million, or $0.03 net loss per share, compared to GAAP net income of $0.5 million, or $0.02 net income per share. GAAP net loss attributable to The ONE Group during the third quarter 2020 included $1.7 million of incremental costs related to COVID-19; and,\n\n\nAdjusted EBITDA** increased 76.9% to $4.7 million compared to $2.6 million in the prior year.\n\n\nFor October 2020, consolidated comparable sales* increased 4.2%. For Kona Grill comparable sales* increased 8.6% and for STK comparable sales* increased 0.3%.\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** 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-openi...