The ONE Group Announces Preliminary Fourth Quarter and Full Year 2021 Sales Results

Rhea-AI Summary

The ONE Group Hospitality (Nasdaq: STKS) reported record revenues for Q4 2021 and the full year, with total GAAP revenues increasing approximately 86.4% to $83.9 million for the quarter, and a 95.1% increase to $277.0 million for the year. Consolidated comparable sales rose 49.8% compared to Q4 2019. U.S. STK restaurant sales surged 154.6% to $195.1 million in 2021. The company anticipates general and administrative expenses for 2021 will range from $25.0 to $26.0 million.

Positive

• Q4 total GAAP revenues increased by $38.9 million or 86.4% from 2020.
• Total GAAP revenues for 2021 expected to be $277.0 million, up 95.1% from 2020.
• Consolidated comparable sales increased 49.8% compared to Q4 2019.
• U.S. STK brand restaurant sales up 154.6% for 2021.

Negative

• General and administrative expenses anticipated to be between $25.0 and $26.0 million.

The Company Reports Record Quarterly and Annual Revenues

Consolidated Comparable Sales for the Quarter Increased Approximately 50% Compared to 2019

DENVER--(BUSINESS WIRE)-- The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today announced preliminary sales for the fourth quarter and full year ended December 31, 2021. The Company also announced its participation at the 24^th Annual ICR Conference.

Preliminary sales highlights for the fourth quarter ended December 31, 2021 are as follows:

• Total GAAP revenues increased approximately 86.4% to approximately $83.9 million from $45.0 million compared to the same period in 2020;
• Consolidated comparable sales* increased 49.8% compared to the same period in 2019;
• Comparable sales* for STK increased 60.0% compared to the same period in 2019; and,
• Comparable sales* for Kona Grill increased 38.2% compared to the same period in 2019

Preliminary sales highlights for the full year ended December 31, 2021 are as follows:

• Total GAAP revenues are expected to be approximately $277.0 million, an estimated 95.1% increase from $141.9 million for the full year 2020; and,
• U.S. STK brand restaurant sales rose approximately 154.6% to a record $195.1 million for the full year 2021.

*Comparable sales represent total U.S. food and beverage sales at owned and managed units opened for at least a full 18-months. This measure includes total revenue from our owned and managed locations. Two-year comparable sales relate to the comparison of comparable sales for the period of 10/1/2021 through 12/31/2021 to the period of 10/1/2019 through 12/31/2019. The Company monitors sales growth at its established restaurant base in addition to growth that results from restaurant acquisitions; the Company has presented two-year comparable sales to illustrate how sales at its restaurant base before the COVID-19 pandemic compare to sales as COVID-19 restrictions have eased and the Company has begun to recover lost sales.

“Achieving another record revenue quarter and all-time highs in annual revenues during this very challenging year is a remarkable accomplishment, and we are very proud with how we finished the year. We generated substantial comparable sales increases compared to both 2020 and 2019 as guests chose to celebrate their holidays experiencing our highly differentiated VIBE dining offerings. The strong comparable sales drove our average weekly volumes during the quarter to $338,000 and $108,000 for STK and Kona Grill respectively. Our continued performance strengthens our leadership position in the high-end and polished casual segments. In addition, we are building a robust pipeline for new development opportunities for both STK and Kona Grill. We are incredibly grateful to our team for making this all possible and look forward to an even better 2022,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.

The Company anticipates general and administrative expenses including stock-based compensation for the full year 2021 to be between $25.0 and $26.0 million depending on the ultimate calculation of performance-based compensation.

24^th Annual ICR Conference Participation

Mr. Emanuel “Manny” Hilario, President and Chief Executive Officer and Mr. Tyler Loy, Chief Financial Officer, will present at the 24^th Annual ICR Virtual Conference at 3:00 pm Eastern Time on Tuesday, January 11, 2022.

The webcast of the presentation can be accessed from the Investor Relations tab of the Company’s website at www.togrp.com under “News / Events” or directly through the ICR Conference website at www.ICRConference.com.

About The ONE Group

The ONE Group Hospitality, Inc. (Nasdaq: STKS) is a global hospitality company that develops and operates upscale and polished casual, high-energy restaurants and lounges and provides hospitality management services for hotels, casinos and other high-end venues both in the U.S. and internationally. The ONE Group’s focus is to be the global leader in Vibe Dining, and its primary restaurant brands and operations are:

• STK, a modern twist on the American steakhouse concept with 23 restaurants in major metropolitan cities in the U.S., Europe and the Middle East, featuring premium steaks, seafood and specialty cocktails in an energetic upscale atmosphere.
• Kona Grill, a polished casual, bar-centric grill concept with 24 restaurants in the U.S., featuring American favorites, award-winning sushi, and specialty cocktails in an upscale casual atmosphere.
• ONE Hospitality, The ONE Group’s food and beverage hospitality services business develops, manages and operates premier restaurants and turnkey food and beverage services within high-end hotels and casinos currently operating 13 venues in the U.S. and Europe.

Additional information about The ONE Group can be found at www.togrp.com.

The following table presents the elements of the quarterly Same Store Sales measure for 2021:

		2021 vs. 2020								2021 vs. 2019
		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
US STK Owned Restaurants		38.6%		715.0%		136.0%		107.8%		17.9%		66.5%		72.0%		60.7%
US STK Managed Restaurants		-19.5%		764.6%		116.5%		133.3%		-30.7%		26.8%		47.4%		58.2%
US STK Total Restaurants		20.8%		725.7%		130.6%		113.5%		1.9%		54.3%		63.8%		60.0%
Kona Grill Total Restaurants		26.6%		160.6%		36.8%		50.2%		4.6%		23.0%		26.9%		38.2%
Combined Same Store Sales		23.5%		324.1%		78.9%		82.7%		3.3%		38.0%		44.7%		49.8%

Cautionary Statement on Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “intend,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements, including but not limited to: (1) the effects of the COVID-19 pandemic, including the emergence of new variants of COVID-19, on our business, including government restrictions on our ability to operate our restaurants and changes in customer behavior, and our ability to hire employees; (2) our ability to open new restaurants and food and beverage locations in current and additional markets, grow and manage growth profitably, maintain relationships with suppliers and obtain adequate supply of products and retain our key employees; (3) factors beyond our control that affect the number and timing of new restaurant openings, including weather conditions and factors under the control of landlords, contractors and regulatory and/or licensing authorities; (4) our ability to successfully improve performance and cost, realize the benefits of our marketing efforts and achieve improved results as we focus on developing new management and license deals; (5) changes in applicable laws or regulations; (6) the possibility that The ONE Group may be adversely affected by other economic, business, and/or competitive factors; and (7) other risks and uncertainties indicated from time to time in our filings with the SEC, including our Annual Report on Form 10-K filed for the year ended December 31, 2020 and subsequent Quarterly Reports on Form 10-Q.

Investors are referred to the most recent reports filed with the Securities and Exchange Commission by The ONE Group Hospitality, Inc. Investors are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220111005532/en/

Investors:

ICR

Michelle Michalski or Raphael Gross

(646) 277-1224

Michelle.Michalski@icrinc.com

Media:

ICR

Seth Grugle

(646) 277-1272

seth.grugle@icrinc.com

Source: The ONE Group Hospitality, Inc.

FAQ

What were the total revenues for The ONE Group (STKS) in Q4 2021?

The ONE Group reported total GAAP revenues of approximately $83.9 million for Q4 2021.

How did The ONE Group's revenues for 2021 compare to 2020?

Total GAAP revenues for 2021 are expected to be approximately $277.0 million, a 95.1% increase from $141.9 million in 2020.

What was the increase in consolidated comparable sales for The ONE Group in Q4 2021 compared to 2019?

Consolidated comparable sales increased 49.8% compared to Q4 2019.

What was the increase in U.S. STK restaurant sales for 2021?

U.S. STK brand restaurant sales rose approximately 154.6% to a record $195.1 million for the full year 2021.