The ONE Group Hospitality, Inc. announced its financial results for the first quarter ended March 31.
Highlights for the first quarter ended March 31, 2016 were as follows:
- The first quarter marked their eighth consecutive quarter of double-digit revenue growth
- Owned unit net revenues increased 47.9 percent to $14.4 million.
- Total food and beverage sales at owned and managed units increased 17.2 percent to $35.2 million.
- Management and incentive fee revenues were $2 million for the quarter.
Jonathan Segal, CEO of The ONE Group says, “We are pleased with the performance of the first quarter, which included our eighth consecutive quarter of double-digit revenue growth and positive same store sales. We leveraged this top line growth into an over 40 percent increase in adjusted EBITDA. Additionally, we continued to execute against our robust development plans for 2016 which include a combination of eight new STK restaurants and unique food and beverage hospitality deals.”
Segal continues, “Looking forward, after much anticipation, we could not be more excited to open STK Orlando in the high traffic area of Disney Springs at the end of May. This will be one of our largest restaurants at over 14,000 square feet on two stories. We believe it will be a very meaningful project for the brand.”
First Quarter 2016 Financial Results
Total owned unit net revenues increased 47.9 percent to $14.4 million in the first quarter of 2016 compared to $9.7 million in the first quarter of 2015. The increase was primarily due to the re-opening of STK Miami Beach and the opening of the STK in Chicago in the fourth quarter and the STK at the W Hotel in West Beverly Hills, which opened earlier in 2015. Comparable sales from owned STK units increased 2.4% for the quarter. Comparable sales from owned and managed STK units increased 2.8 percent for the quarter.
Management and incentive fee revenues were $2 million in the first quarter of 2016, a decrease of 1.8 percent compared to $2.1 million in the prior year’s quarter. The decrease was driven by the decline in revenue from the U.K. operations as well as a decline in the currency exchange rates versus the same period a year ago as well as a slight decrease in incentive fees from the STK in Las Vegas.
Total food and beverage sales at owned and managed units increased 17.2 percent to $35.2 million compared to $30 million in the first quarter of 2015.