NASDAQ$STKS

One Group Hospitality Inc/Th · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

The ONE Group's revenue grew, restaurant operating profit increased and STK Washington DC was opened.

The ONE Group reported a 3.0% increase in total GAAP revenues to $85.0 million. However, comparable sales decreased by 7.9%. The company experienced a GAAP net loss attributable to The ONE Group of $2.1 million, or $0.07 net loss per share. Restaurant Operating Profit increased by 2.0% to $13.2 million, while Adjusted EBITDA decreased by 3.6% to $10.5 million.

  • Total GAAP revenues increased 3.0% to $85.0 million.
  • Comparable sales decreased 7.9%.
  • GAAP net loss attributable to The ONE Group was $2.1 million, or $0.07 net loss per share.
  • Restaurant Operating Profit increased 2.0% to $13.2 million.

Headline financials

Total Revenue

$85M

Previous: $82.6M+3.0%
EPS

-$0.07

Previous: $0.10-170.0%
Adjusted EBITDA

$7.57M

Previous: $10.9M-30.4%
Restaurant Operating Profit

$13.2M

Previous: $12.9M+2.0%
Capital Expenditures

-$15.8M

Previous: -$11.9M-33.3%
Free Cash Flow

-$17.9M

Previous: -$9.25M-93.2%
Net Income

-$2.07M

Previous: $2.61M-179.4%
Operating Income

-$620K

Previous: $4.28M-114.5%
Gross Profit

$16.6M

Previous: $16.9M-1.4%
Cash & Equivalents

$15.4M

Previous: $48.7M-68.4%
Total Assets

$309M

Previous: $289M+7.2%
Stock-Based Comp

$1.36M

Previous: $1.32M+2.9%

Revenue & EPS history

One Group Hospitality · Revenue · Quarterly

$85M

Q1 2024+3%vs Q1 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

One Group Hospitality · $76.9M total across 2 segments · Q3 2023

  • Owned Restaurant Net Revenue
    $73.7M
  • Management, License, Franchise and Incentive Fee Revenue
    $3.18M

Forward guidance

The Company is updating its 2024 targets, which are now inclusive of the acquisition of Benihana.

Tailwinds

  • Total GAAP revenues are projected to be between $700 million and $740 million.
  • Managed, franchise and license revenues are projected to be between $17 million and $19 million.
  • Consolidated Adjusted EBITDA is projected to be between $95 million and $100 million.
  • Annual run-rate Total GAAP Revenues at 12/31/2024 is projected to be approximately $950 million.
  • Annual run-rate Consolidated Adjusted EBITDA is projected to be greater than $140 million.

Headwinds

  • Total owned operating expenses as a percentage of owned restaurant net revenue are expected to be approximately 83.0%.
  • Consolidated Total G&A excluding stock-based compensation is expected to be approximately $40 million.
  • Consolidated Restaurant pre-opening expenses are expected to be between $7 million and $9 million.
  • Consolidated Effective income tax rate is expected to be between 5% and 10%.
  • Consolidated Total capital expenditures, net of allowances received by landlords are expected to be between $50 million and $60 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+2.0%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+4.0%

Avg return

30 days after

53%

25 / 47 earnings

Positive

+32.4%

Q2 2020

Best reaction

-18.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.6%+10.3%-2.2%
Q4 2025+6.4%+6.4%-2.3%
Q3 2025-3.1%-8.2%-0.5%
Q1 2025+0.7%-14.8%-12.4%
Q4 2024+0.8%+8.5%+7.8%
Q3 2024-13.3%-16.3%-9.0%
Q2 2024-15.0%-14.8%-16.9%
Q1 2024-4.5%+9.7%+9.1%
Q4 2023+7.6%+17.1%+47.7%
Q3 2023-0.4%-1.8%+9.7%
Q2 2023-5.2%-5.0%-1.0%
Q1 2023+2.0%-10.9%-4.3%
Q4 2022-3.5%-4.7%-2.6%
Q3 2022-18.7%-26.5%-7.8%
Q2 2022-9.3%-5.5%-19.9%
Q1 2022-0.6%-5.5%-0.1%
Q4 2021+6.2%+14.1%+3.3%
Q3 2021+5.9%+7.0%-15.6%
Q2 2021+20.6%+7.1%+1.7%
Q1 2021+22.6%+14.3%+38.0%
Q4 2020-7.3%-5.2%+7.1%
Q3 2020+22.2%+30.9%+36.1%
Q2 2020+32.4%+16.6%+16.6%
Q1 2020-5.8%-12.3%+43.5%
Q4 2019+28.0%-2.3%+6.1%
Q3 2019+4.1%+1.6%+1.9%
Q2 2019-1.4%-11.3%-8.4%
Q1 2019-3.9%-7.9%-15.8%
Q4 2018-3.0%-0.5%+0.3%
Q3 2018-1.0%-1.7%-21.0%
Q2 2018-2.1%+3.5%+14.0%
Q1 2018+7.6%+10.3%+9.4%
Q4 2017+6.2%+5.0%-9.7%
Q3 2017+4.0%+24.7%+40.0%
Q2 2017+1.1%-0.6%-14.2%
Q1 2017+2.5%+1.1%-4.7%
Q4 2016+9.3%+11.6%+27.7%
Q3 2016+1.7%-1.3%+11.2%
Q2 2016-10.9%-12.4%-6.9%
Q1 2016+1.2%
Q4 2015+9.1%
Q3 2015+4.2%
Q2 2015-6.3%
Q1 2015+0.0%
Q4 2014+0.2%
Q3 2014+0.0%
Q2 2014+0.0%
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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