One Group Hospitality Q4 2023 Earnings Report
Key Takeaways
The ONE Group reported a 1.8% increase in total GAAP revenues to $89.9 million and an 11.3% increase in adjusted EBITDA to $14.5 million for the fourth quarter of 2023. The company opened four new restaurants during the quarter and provided financial targets for 2024.
Total GAAP revenues increased 1.8% to $89.9 million.
Comparable sales decreased 4.3% compared to 2022 but increased 40.1% compared to 2019.
GAAP net income attributable to The ONE Group was $4.6 million, or $0.15 per share ($0.17 adjusted net income per share).
Adjusted EBITDA increased 11.3% to $14.5 million.
One Group Hospitality
One Group Hospitality
Forward Guidance
The Company provided the following targets for 2024: Total GAAP revenues between $360M to $380M, Managed, license and incentive fee revenues between $15M to $16M, Total owned operating expenses as a percentage of owned restaurant net revenue approximately 83.0%, Total G&A excluding stock-based compensation approximately $30M, Consolidated Adjusted EBITDA approximately $45M, Restaurant pre-opening expenses between $4M to $5M, Operating income between $13M to $15M, Effective income tax rate between 5% to 10%, Total capital expenditures, net of allowances received by landlords between $30M to $35M, Number of new system-wide venues between Six to Eight.
Positive Outlook
- Total GAAP revenues between $360M to $380M
- Managed, license and incentive fee revenues between $15M to $16M
- Total G&A excluding stock-based compensation approximately $30M
- Consolidated Adjusted EBITDA approximately $45M
- Operating income between $13M to $15M
Challenges Ahead
- Total owned operating expenses as a percentage of owned restaurant net revenue approximately 83.0%
- Restaurant pre-opening expenses between $4M to $5M
- Effective income tax rate between 5% to 10%
- Total capital expenditures, net of allowances received by landlords between $30M to $35M
- Number of new system-wide venues between Six to Eight