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Mar 31, 2024
One Group Hospitality Q1 2024 Earnings Report
The ONE Group's revenue grew, restaurant operating profit increased and STK Washington DC was opened.
Key Takeaways
The ONE Group reported a 3.0% increase in total GAAP revenues to $85.0 million. However, comparable sales decreased by 7.9%. The company experienced a GAAP net loss attributable to The ONE Group of $2.1 million, or $0.07 net loss per share. Restaurant Operating Profit increased by 2.0% to $13.2 million, while Adjusted EBITDA decreased by 3.6% to $10.5 million.
Total GAAP revenues increased 3.0% to $85.0 million.
Comparable sales decreased 7.9%.
GAAP net loss attributable to The ONE Group was $2.1 million, or $0.07 net loss per share.
Restaurant Operating Profit increased 2.0% to $13.2 million.
One Group Hospitality
One Group Hospitality
One Group Hospitality Revenue by Segment
Revenue by Segment
Owned Restaurant Net Revenue
CapyFin.comManagement, License, and Incentive Fee Revenue
CapyFin.com Forward Guidance
The Company is updating its 2024 targets, which are now inclusive of the acquisition of Benihana.
Positive Outlook
- Total GAAP revenues are projected to be between $700 million and $740 million.
- Managed, franchise and license revenues are projected to be between $17 million and $19 million.
- Consolidated Adjusted EBITDA is projected to be between $95 million and $100 million.
- Annual run-rate Total GAAP Revenues at 12/31/2024 is projected to be approximately $950 million.
- Annual run-rate Consolidated Adjusted EBITDA is projected to be greater than $140 million.
Challenges Ahead
- Total owned operating expenses as a percentage of owned restaurant net revenue are expected to be approximately 83.0%.
- Consolidated Total G&A excluding stock-based compensation is expected to be approximately $40 million.
- Consolidated Restaurant pre-opening expenses are expected to be between $7 million and $9 million.
- Consolidated Effective income tax rate is expected to be between 5% and 10%.
- Consolidated Total capital expenditures, net of allowances received by landlords are expected to be between $50 million and $60 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income