$STKS reports strong revenue growth, new location pipeline for 2023.
Mar 9th 2023, 9:22 pm
Analyst Summary: The ONE Group Hospitality, Inc., a global hospitality company that develops and operates high-end restaurants, reported robust top-line growth for the fourth quarter and full year ended December 31, 2022. The company achieved a 14.3% increase in total revenue, which included a 10% increase in comparable sales from 2021 and a 47% increase compared to 2019. The company also established a strong pipeline of new STK and Kona Grill locations, including company-owned and asset light development. CEO Manny Hilario believes that the company has a long runway of white space opportunities ahead, with a total addressable market of 400 total venues including 200 STKs globally and 200 Kona Grills domestically. Forward-looking statements indicate that the company intends to open eight to twelve new venues in 2023, with a Kona Grill restaurant in Columbus, OH already opened in January 2023. The company also repurchased $1.7 million of its outstanding common stock and drew the full amount available on its delayed draw term loan in December 2022. Adjusted EBITDA, Restaurant Operating Profit, and Adjusted Net Income have been presented as supplemental measures of financial performance that are not required by GAAP. Investors are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise.