Q1 2024 One Group Hospitality Inc Earnings Call Transcript
Key Points
- The One Group Hospitality Inc (STKS) reported a 3% increase in sales to $85 million, driven by strong performance from newly opened company-owned restaurants.
- Restaurant-level margins were maintained at 16% despite inflationary pressures, thanks to cost-saving initiatives that generated approximately $3 million in restaurant operating profit.
- The company successfully opened a new STK Steakhouse in Washington, D.C., marking a significant step in its strategic expansion and long-term growth strategy.
- The One Group Hospitality Inc (STKS) has a robust pipeline for new units, expecting to open five to seven new venues including STK and Kona Grill brands.
- The acquisition of SFR and Holdings Corp. has expanded the company's portfolio and is expected to generate synergies, particularly in managing commodity costs and leveraging digital capabilities.
- Comparable store sales decreased due to a challenging consumer environment, reflecting ongoing volatility in customer spending patterns.
- The company reported a net loss of $2.1 million for the quarter, a decrease from a net income of $2.6 million in the same quarter last year.
- Management noted a 7.9% decrease in comparable sales, with declines observed at both STK and Kona Grill brands.
- Preopening expenses increased to $2.9 million, up from $1.3 million in the prior year, due to costs associated with new restaurant openings.
- The company faces challenges with underperforming locations, particularly those acquired through the recent acquisition, which are dragging down overall profitability.
Greetings and welcome to The ONE Group First Quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference call over to Tyler Loy, please go ahead.
Thank you, operator, and hello, everyone. Before we begin our formal remarks, let me remind you that part of our discussion today will include forward looking statements. Forward looking statements are not guarantees of future performance, and you should not place undue reliance on them. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect.
Please also note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to revise or publicly release any revisions of these forward-looking statements in light of new information or future events. And we refer you to our recent SEC filings for a more detailed
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
