One Group Hospitality Inc/Th · Q4 2023 earnings

Briefing

The ONE Group demonstrated growth in revenue and adjusted EBITDA, opened four restaurants, and introduced 2024 targets.

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.

Headline financials

Revenue & EPS history

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.