One Group Hospitality (STKS) Stephens 26th Annual Investment Conference summary

Business overview and growth strategy

• Revenue has grown from $100 million in 2017 to $900 million, with run-rate EBITDA at $110 million.

• STK has expanded to 29 units, with a target of up to 200 globally.

• Benihana acquisition added over 100 units, with potential to grow to 400 in the U.S. and expand in Latin America.

• Kona Grill and RA Sushi, now grouped as "the Grill," have 40 units with a 200-unit potential.

• Additional growth avenues include hotel F&B operations, retail, and licensing in sports venues.

Strategic advantages of a multi-brand portfolio

• Shared back-office operations and call center provide operational leverage.

• Diverse brands make the group attractive to landlords and hospitality partners.

• Ability to operate in both urban and suburban markets, with flexibility in real estate size.

• Multi-brand loyalty program enhances customer retention and engagement.

Consumer trends and value offerings

• Dining is concentrated on Thursday-Saturday, with fewer early-week visits and more last-minute decisions.

• Noticeable trade-down in menu choices, especially at STK, but traffic is retained better than industry peers.

• Value offerings include 369 Happy Hour, $39 dinner deals, $9.99 takeout burgers, and lunch/brunch specials.

• Takeout and delivery see strong demand for burgers, sushi, shareables, and premium items in urban markets.