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Sep 30, 2023
One Group Hospitality Q3 2023 Earnings Report
The ONE Group's financial performance in Q3 2023 was marked by increased total GAAP revenues but a net loss, with progress in long-term growth strategy and cost initiatives.
Key Takeaways
The ONE Group reported a 5.3% increase in total GAAP revenues to $76.9 million, but experienced a net loss of $3.1 million, or $0.10 per share. Consolidated comparable sales decreased by 3.0%. The company opened new Kona Grill and STK locations and is focused on cost initiatives and expansion.
Total GAAP revenues increased by 5.3% to $76.9 million.
Consolidated comparable sales decreased by 3.0%.
GAAP net loss attributable to The ONE Group was $3.1 million, or $0.10 per share.
Restaurant Operating Profit was $9.1 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 between $335M to $345M
- Managed, license and incentive fee revenues between $14.5M to $15.0M
- Total owned operating expenses as a percentage of owned restaurant net revenue between 84.0% to 83.0%
- Total G&A excluding stock-based compensation between $26M to $27M
- Consolidated Adjusted EBITDA between $40M to $45M
Challenges Ahead
- Restaurant pre-opening expenses at $8M
- Operating income between $11.5M to $16.5M
- Effective income tax rate between 5% to 10%
- Total capital expenditures, net of allowances received by landlords at 2.5% of Company-owned revenue and approximately $4.0M per new Company-owned venue
- Number of new system-wide venues at Eight
Revenue & Expenses
Visualization of income flow from segment revenue to net income