The ONE Group Reports First Quarter 2021 Financial Results
The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today reported its financial results for the first quarter ended March 31, 2021.
Highlights for the first quarter ended March 31, 2021 compared to the same period last year are as follows:
-
Total GAAP revenues increased
24.0% to$50.5 million from$40.7 million . -
GAAP net income attributable to The ONE Group was slightly positive, or
$0.00 net income per share ($0.05 adjusted net income per share)****, compared to GAAP net loss of$4.6 million , or$0.16 net loss per share ($0.13 adjusted net loss per share)****. GAAP net income attributable to The ONE Group during the first quarter 2021 included$1.6 million of incremental costs related to COVID-19. -
Adjusted EBITDA** increased
312% to$6.5 million from$1.6 million .
Sales Highlights for the first quarter ended March 31, 2021 and April 2021 compared to the same period in 2019 are as follows:
-
Consolidated comparable sales* increased
3.3% for the quarter and32.2% for the month of April. -
Comparable sales* for STK increased
1.9% for the quarter and47.4% for the month of April. -
Comparable sales* for Kona Grill increased
4.6% and18.6% for the month of April.
“The improvement in our comparable sales trend clearly demonstrates that as dining capacity increases and vaccinations are rolled out, guests are eager to join us for in-person VIBE dining experiences. Although there are still many restrictions still imposed on us by local mandates, we have already surpassed 2019 comparable sales in the first quarter, experienced an acceleration in April, and expect continued improvement as restrictions lift and our operational, marketing, and culinary initiatives continue to be effective. We sincerely thank our teammates for ensuring our operational readiness during this recovery period and for properly serving our guests while following strict health and safety protocols. Our team is also effectively managing costs by adhering to the cost-saving measures we implemented last year that are enabling us to deliver record restaurant-level margins. In doing so, we are maximizing our Adjusted EBITDA opportunity relative to the robust growth on our top-line,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.
*Comparable sales represent total U.S. food and beverage sales at owned and managed units opened for at least a full 18-month period. This measure includes total revenue from our owned and managed locations. Two-year comparable sales relates to the comparison of comparable sales for the period of 1/1/2021 through 3/31/2021 to the period of 1/1/2019 through 3/31/2019 and for the period of 4/1/2021 through 4/30/2021 to the period of 4/1/2019 through 4/30/2019. The Company monitors sales growth at its established restaurant base in addition to growth that results from restaurant acquisitions; the Company has presented two-year comparable sales to illustrate how sales at its restaurant base before the COVID-19 pandemic compare to sales as COVID-19 restrictions have eased and the Company has begun to recover lost sales.
** Adjusted EBITDA. We define Adjusted EBITDA as net income before interest expense, provision for income taxes, depreciation and amortization, non-cash impairment loss, non-cash rent expense, pre-opening expenses, non-recurring gains and losses including incremental costs related to COVID-19, stock-based compensation and certain transactional costs. Adjusted EBITDA has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of Adjusted EBITDA to Net Income in this release.
First Quarter 2021 Financial Results:
Total GAAP revenues increased
Total owned restaurant net revenues increased
Management, license and incentive fee revenues were
Restaurant Operating Profit*** was
GAAP net income attributable to The ONE Group Hospitality, Inc. in the first quarter of 2021 was
Adjusted Net Income**** attributable to The ONE Group Hospitality, Inc. in the first quarter of 2021 was
Adjusted EBITDA** increased to
As of March 31, 2021, the Company had
***Restaurant Operating Profit. We define Restaurant Operating Profit as owned restaurant net revenue minus owned restaurant cost of sales and owned restaurant operating expenses. Restaurant Operating Profit has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of Restaurant Operating Profit to Operating income (Loss) in this release.
****Adjusted Net Income (Loss). We define Adjusted Net Income as net income before COVID-19 costs, one-time stock based compensation and the income tax effect of the adjustment. Adjusted Net Income has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of Adjusted Net Income to Net Income (Loss) in this release.
In-Person Dining Capacity
-
January:
41% -
February:
46% -
March:
60% -
April:
65%
2021-2022 Restaurant Development
The Company intends to open thirteen new venues between 2021 and 2022. There are currently three STK restaurants and four managed F&B venues under construction.
Location |
Type 
The ONE Group Hospitality, Inc.
NASDAQ:STKSSTKS RankingsSTKS Latest NewsSTKS Stock Data
170.30M
20.03M
16.23%
45.25%
6.22%
Food Service Contractors
Accommodation and Food Services
United States of America
NEW YORK
About STKSthe one group develops and operates upscale, high-energy restaurants and lounges and provides one hospitality, a signature turn-key food and beverage service for hospitality venues including hotels, casinos and other high-end locations both nationally and internationally. stk is the primary restaurant brand in the one group portfolio. it’s a unique concept that artfully blends the modern steakhouse and a chic lounge into one, offering a dynamic, fine dining experience with the superior quality of a traditional steakhouse. stk distinguishes itself by emphasizing the social experience and taking a vibe-driven approach to fine dining. every venue has a dj to create an infectious, high-energy atmosphere and the sleek environment is designed to encourage guests to interact and mingle. ultimately, stk aims to define the modern dining experience complete with incredible food, world-class service and the perfect ambiance. stk rebel offers the same vibe-driven steakhouse with a slightly broader
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