In This Article:
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Full Year Revenue: Increased over 100% to $672 million.
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Full Year Adjusted EBITDA: Increased almost 130% to $75.2 million.
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Q4 Revenue: Increased 147% to $221.9 million.
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Q4 Adjusted EBITDA: Increased almost 150% to $30.3 million.
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Q4 Restaurant Level Margins: 16.4%.
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Q4 Net Loss: $5.4 million or $0.18 net loss per share.
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Q4 Adjusted Net Loss: $0.9 million or $0.03 adjusted net loss per share.
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Company-Owned Restaurant Cost of Sales: Decreased to 20.4% of net revenue.
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Company-Owned Restaurant Operating Expenses: Increased to 61.2% of net revenue.
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Q4 General and Administrative Costs: Increased to $13.2 million.
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Cash and Liquid Resources: Over $71 million at year end.
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New Restaurant Openings: Three in Q4, ending the year with six new restaurants.
Release Date: March 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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The One Group Hospitality Inc (NASDAQ:STKS) achieved a significant revenue increase of over 100% to $672 million for the full year 2024, driven by the strategic acquisition of Benihana and RA Sushi.
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Adjusted EBITDA increased by almost 130% to $75.2 million, reflecting strong operational performance and cost efficiencies.
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The company opened six new restaurants in 2024, including three in the last 70 days of the year, indicating robust expansion efforts.
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The acquisition of Benihana and RA Sushi resulted in significant operational efficiencies and cost savings, with a target of $20 million in total cost savings by year-end 2026.
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The company ended the year with over $71 million in liquid resources, providing financial flexibility for future growth and shareholder returns.
Negative Points
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Consolidated comparable sales decreased by 4.3% in the fourth quarter, indicating challenges in maintaining consistent sales growth across all brands.
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Management, license, and incentive fee revenues decreased by 14.5% to $4.1 million, reflecting challenges in these revenue streams.
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Company-owned restaurant operating expenses increased by 340 basis points to 61.2% of net revenue, driven by cost inflation and fixed operating costs.
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The company reported a net loss available to common stockholders of $5.4 million in the fourth quarter, compared to a net income of $4.6 million in the prior year quarter.
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Interest expense increased significantly to $10.5 million due to a higher level of outstanding debt post-acquisition, impacting overall profitability.
Q & A Highlights
Q: How do you expect same-store sales to progress throughout the year given the current consumer uncertainty? A: Emanuel Hilario, President and CEO, explained that they anticipate a gradual improvement in same-store sales each quarter. For the first quarter, they project a decline of 3% to 4%, with full-year expectations ranging from a 3% decline to a 1% increase. The company is seeing sequential improvements and expects continued progress, especially in the second, third, and fourth quarters.