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Jun 30, 2023
One Group Hospitality Q2 2023 Earnings Report
The ONE Group's financial performance decreased in Q2 2023, with net income and Adjusted EBITDA declining compared to the same period in 2022, but total GAAP revenues increased.
Key Takeaways
The ONE Group reported a 2.8% increase in total GAAP revenues, reaching $83.4 million. However, consolidated comparable sales decreased by 4.7%. GAAP net income was $0.6 million, or $0.02 per share, while Adjusted EBITDA was $8.5 million. The company opened a new Kona Grill in Riverton, Utah, and is planning further expansion with eight to twelve new venues in 2023.
Total GAAP revenues increased 2.8% to $83.4 million.
Consolidated comparable sales decreased 4.7% compared to 2022.
GAAP net income attributable to The ONE Group was $0.6 million, or $0.02 per share.
Adjusted EBITDA was $8.5 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 the following targets for 2023.
Positive Outlook
- Total GAAP revenues $350M to $365M
- Managed, license and incentive fee revenues $15.0M to $15.5M
- Total owned operating expenses as a percentage of owned restaurant net revenue 83.0% to 82.0%
- Consolidated Adjusted EBITDA $45M to $50M
- Operating income $20.5M to $24.5M
Challenges Ahead
- Total G&A excluding stock-based compensation $27M to $29M
- Restaurant pre-opening expenses $5.5M to $6.5M
- Effective income tax rate 5% to 10%
- Total capital expenditures, net of allowances received by landlords 2.5% of Company-owned revenue
- Total capital expenditures, net of allowances received by landlords $3.0M to $3.5M per new Company-owned venue
Revenue & Expenses
Visualization of income flow from segment revenue to net income