The ONE Group Reports Sales Results
The ONE Group Hospitality, Inc. (NASDAQ: STKS) has recently provided insights into their preliminary sales outcomes for the fourth quarter and the entirety of 2024. This report showcases the company’s growth and operational achievements during a pivotal year.
Sales Performance Highlights
In comparison to the same quarter from the previous year, the highlights for the fourth quarter of 2024 include:
- Expected GAAP revenues approximating $221.0 million, marking a remarkable 145% increase from last year's $89.9 million.
- Comparable sales anticipated to have decreased around 4.3%.
Moreover, for the complete year of 2024, the following milestones were reached:
- Total GAAP revenues are projected to be about $672.0 million, signifying an impressive 102% increase from the previous year’s $332.8 million.
- Comparable sales forecasted to have dipped around 6.8%.
Positive Year-End Review
“We closed out the year on a strong note, achieving revenues towards the upper end of our forecast. The fourth quarter also stood out as our strongest for comparable sales throughout the year, showing substantial sequential growth,” stated Emanuel “Manny” Hilario, President and CEO of The ONE Group. He also highlighted the resurgence of positive transactions at STK and the improvements observed at Benihana, which signal positive trends for the company as they enter the new year.
In terms of growth strategy, Hilario shared their ambitions: “We are intensely focused on strengthening our balance sheet while gearing up for our next growth phase. Our intention is to open five to six company-owned locations each year and promote asset-light development of managed and licensed STKs, Kona Grills, and franchised Benihanas. We aim to maintain a strong focus on generating free cash flow, ensuring balance sheet flexibility, and maximizing returns for our shareholders.”
Restaurant Development Updates
In 2024, The ONE Group successfully launched five new company-owned restaurant locations. Among these were a Salt Water Social and a managed STK. These openings reflect the company’s ongoing commitment to expanding its footprint.
New Locations in 2024
The following are details of some notable restaurant openings:
- Owned STK restaurant in Washington DC, opened in March.
- RA Sushi in Plantation, Florida, launched in July.
- Kona Grill in Tigard, Oregon, opened in September.
- STK restaurant in Aventura, Florida, commenced in October.
- Salt Water Social in Denver, Colorado, initiated in November.
- Managed STK in Niagara Falls, also started in November.
Upcoming Conference Participation
The company will be prominently featured at the 27th Annual ICR Conference on January 13, 2025. Emanuel Hilario and CFO Tyler Loy will present and engage with institutional investors on this date.
About The ONE Group
The ONE Group Hospitality, Inc. (NASDAQ: STKS) is known for developing and managing upscale and energetic dining experiences, providing hospitality services in high-end venues globally. The company aims to be a leader in Vibe Dining, with key brands including:
- STK: A modern take on the American steakhouse.
- Benihana: An interactive dining experience featuring skilled chefs.
- Kona Grill: A bar-centric grill offering a polished casual atmosphere.
- RA Sushi: Vibrant Japanese cuisine restaurants.
- ONE Hospitality: Food and beverage services for upscale hotels and casinos.
For more information about The ONE Group, visit their website.
Frequently Asked Questions
What were the main highlights of The ONE Group's sales for 2024?
The main highlights included total GAAP revenues of approximately $672 million, which is a 102% increase from the previous year.
How did comparable sales perform in 2024?
Comparable sales were expected to see a decrease of around 6.8% compared to 2023.
What new restaurants did The ONE Group open in 2024?
The ONE Group opened five new company-owned restaurants, including Salt Water Social and managed STK locations.
Who will be presenting at the upcoming ICR Conference?
Emanuel Hilario, President and CEO, along with CFO Tyler Loy will present at the conference.
What is the focus of The ONE Group moving forward?
The ONE Group is focused on opening new locations while strengthening its balance sheet and maximizing shareholder returns.
