One Group Hospitality (STKS) Q2 2024 earnings summary

Executive summary

• Revenue surged 106.8% year-over-year to $172.5 million in Q2 2024, driven by the Benihana and RA Sushi acquisition completed in May 2024.

• Restaurant operating profit increased 151.3% to $30.0 million, with margin improving to 17.7%.

• Adjusted EBITDA reached $23.9 million, supporting full-year guidance of $95–$100 million.

• Net loss attributable to common stockholders was $11.5 million, or $0.36 per share, compared to net income of $0.6 million last year; adjusted net income per share was $0.08.

• Comparable sales declined 7.0% year-over-year, reflecting a challenging consumer environment.

Financial highlights

• Total consolidated GAAP revenues rose 106.8% to $172.5 million compared to $83.4 million in Q2 2023.

• Owned restaurant net revenue increased to $169 million, up from $79.9 million year-over-year.

• Restaurant operating profit margin improved to 17.7% from 14.9% year-over-year.

• Adjusted EBITDA for Q2 2024 was $23.9 million, up from $8.5 million in Q2 2023.

• Net loss available to common stockholders was $11.5 million, or $0.36 per share, versus net income of $0.6 million last year.

Outlook and guidance

• 2024 GAAP revenue projected at $700–$740 million, with managed/franchised/licensee revenue of $17–$19 million.

• Adjusted EBITDA guidance reaffirmed at $95–$100 million.

• Eight to eleven new venues planned for 2024, with two opened year-to-date and four to five more expected in H2.

• Restaurant-level margin guidance set at 17% for the year, with Q4 expected to be the strongest margin quarter.

• Anticipates $20 million in annual synergies from Benihana integration over two years.