The ONE Group reports 107% revenue increase in Q2 2021 with Benihana acquisition.

From Investing.com: 2024-08-12 11:27:50

The ONE Group reported a 107% increase in Q2 2021 revenue, reaching $172.5 million due to acquisitions of Benihana and RA Sushi. With $20 million in synergies expected over three years, adjusted EBITDA is projected to be between $95 million and $100 million for the year. Plans to open 8-11 new venues are in the works.

Cost of sales improvements and a 111.5% increase in owned restaurant net revenue highlight The ONE Group’s positive performance. Despite a 7% decrease in comparable sales, the company aims to drive sales and enhance shareholder value. General and administrative costs rose by 32.1%, while operated restaurant revenue grew substantially.

Despite facing challenges like a decrease in comparable sales and rising general and administrative costs, The ONE Group remains focused on executing its growth plan. Management aims to achieve a 17% margin guidance for the year, with plans to enhance the aesthetics of Benihana and address high rent costs. Labor inflation and commodity inflation rates are expected to remain low to mid-single digits.

The ONE Group Hospitality, Inc. has demonstrated notable progress in its financial performance, with substantial revenue growth driven by strategic acquisitions. Despite some challenges, the company remains committed to executing its growth plan and enhancing shareholder value. Plans to maintain growth momentum and capitalize on the company’s unique dining concept are in place.



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