NASDAQ$STKS

One Group Hospitality Inc/Th · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

The ONE Group's financial performance decreased in Q2 2023, with net income and Adjusted EBITDA declining compared to the same period in 2022, but total GAAP revenues increased.

The ONE Group reported a 2.8% increase in total GAAP revenues, reaching $83.4 million. However, consolidated comparable sales decreased by 4.7%. GAAP net income was $0.6 million, or $0.02 per share, while Adjusted EBITDA was $8.5 million. The company opened a new Kona Grill in Riverton, Utah, and is planning further expansion with eight to twelve new venues in 2023.

  • Total GAAP revenues increased 2.8% to $83.4 million.
  • Consolidated comparable sales decreased 4.7% compared to 2022.
  • GAAP net income attributable to The ONE Group was $0.6 million, or $0.02 per share.
  • Adjusted EBITDA was $8.5 million.

Headline financials

Total Revenue

$83.4M

Previous: $81.1M+2.8%
EPS (adj)

$0.06

Previous: $0.15-60.0%
Consolidated Comparable Sales

-4.7%

No prior period
Adjusted EBITDA

$8.5M

Previous: $10.4M-18.3%
Restaurant Operating Profit

$11.9M

Previous: $12.8M-7.0%
Capital Expenditures

-$23.9M

Previous: -$12.1M-97.6%
Free Cash Flow

-$23.3M

Previous: -$7.79M-199.5%
Net Income

$568K

Previous: $4.3M-86.8%
Operating Income

$2.05M

Previous: $5.75M-64.5%
Gross Profit

$15.4M

Previous: $17M-9.3%
Cash & Equivalents

$38.2M

Previous: $24.4M+56.4%
Total Assets

$289M

Previous: $235M+23.0%
Stock-Based Comp

$1.23M

Previous: $911K+35.5%

Revenue & EPS history

One Group Hospitality · Revenue · Quarterly

$83.4M

Q2 2023+2.8%vs Q2 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

One Group Hospitality · $83.4M total across 2 segments · Q2 2023

  • Owned Restaurant Net Revenue
    $79.9M+3.9%
  • Management, License, Franchise and Incentive Fee Revenue
    $3.47M-17.3%

Forward guidance

The Company is updating the following targets for 2023.

Tailwinds

  • Total GAAP revenues $350M to $365M
  • Managed, license and incentive fee revenues $15.0M to $15.5M
  • Total owned operating expenses as a percentage of owned restaurant net revenue 83.0% to 82.0%
  • Consolidated Adjusted EBITDA $45M to $50M
  • Operating income $20.5M to $24.5M

Headwinds

  • Total G&A excluding stock-based compensation $27M to $29M
  • Restaurant pre-opening expenses $5.5M to $6.5M
  • Effective income tax rate 5% to 10%
  • Total capital expenditures, net of allowances received by landlords 2.5% of Company-owned revenue
  • Total capital expenditures, net of allowances received by landlords $3.0M to $3.5M per new Company-owned venue

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 Q2 2023

Historical avgQ2 2023

+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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