Earnings call transcript Q4 2022

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Operator

Good day and welcome to The ONE Group Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Manny Hilario, the CEO. Please, Manny, go ahead.

Tyler Loy

Thank you, operator and hello, everyone.

formal discussion me statements. today our part you begin our of will we remarks, remind let that Before include forward-looking forward-looking reliance guarantees should not statements performance These you and of not them. on future undue place are These uncertainties could statements materially what cause and differ that we to are expect. to results risks subject from also numerous actual also that these only date the of call. note forward-looking opinion Please of as statements reflect this our light obligation no these revise or new any events. release future of in to publicly forward-looking revisions statements We of or information undertake We refer a future the could you to SEC conditions. filings our our risks more for recent operating impact financial of detailed and results discussion that

we can which will call, non-GAAP certain we today's be financial evaluating believe in measures During useful discuss performance. our

and measures considered not beverage consider issued these these measures, adjusted such substitute information please profit, discussion However, we along EBITDA, why total GAAP GAAP. accordance operating our earnings a as measures, net the in of see food or with results to reconciliations owned sales income, sales or be prepared and measures and units for in as adjusted The and today. with of comparable should other a licensed these isolation managed of presentation release at useful, restaurant

I'd to to With over that, Manny? like turn Hilario. Manny call the

Manny Hilario

interest and everyone. your Group. Tyler The in joining for We hello, and ONE you, us Thank sincerely appreciate today you

their world-class hard Let me providing for begin our by work, members of thanking across team all all operations our of restaurants.

and operate leadership to vibe have great that our of restaurant able exceptional unforgettable been every position every which to end best is to casual both confidence and It teams delivering high in experiences can help our strengthen because day we every to bring we be forward. moving that members mission to guest we team upscale and every life guest time. in that Our market have the by dining, is our

XX.X% revenue We sales. a which for to a comparable included The good increased XXXX ONE XX.X% year was increase $XXX.X undoubtedly store Group. in million

more Our social to focus on nights. include as off paid own to by ability and has demonstrated occasions holidays date the diversifying our customer base our

fourth pleased we're negatively holiday in adjusted while our travel the performance, by December, very of $XX quarter overall delays margins subsequent we EBITDA quarter, For in with million driven the resulting impacted the weather almost for by store-level were XX%. in and

urban to are business addition, In and are see to clientele return our located restaurants for demand an returning starting corporate in has are events. the there the and we off-site as increase areas of the work our offices people where in been

activity, EBITDA growth force STK virtual This London X and San year, as Texas. going in managed materialize Vegas Stratford, Additionally, in adjusted noticing like aggressively pipeline we X development in that we in convention deployed XXXX, Francisco REEF are more we Orlando, opened Scottsdale and to Austin, past company-owned located especially our double-digit Dallas will and saw forward. and third we Kitchen expect revenue have that we an to a deliver pipeline our opportunities. Maybe sales in most Las begin of importantly, these STKs in we built pursue cities incredible and and

above Since Dallas $XXX,XXX week. week. per new investment and approximately in our $XXX,XXX Francisco our company-owned roughly sales is averaged San of opening have This X per model significantly STKs, STK

these to expect we locations. average, the than for have less On X-year payback

new of opened We is we Grill. opened of Kona Eastern in averaging Grill design a pacing of the a per have the restaurant with in model Grill acquiring what is our the January. Columbus, This slowest is opening Kona the expansion has the large new this year. a This opening Kona big in brand despite ahead first have investment momentum part Center week, Ohio expect in XXXX in we be since what $XXX,XXX continued step approximately and will Town for typically again, into our it

rooftop and at month. held patio plan array events. a canal. the This portfolio Rooftop fourth in significant our was the of to a fireplace is with opened a the virtual Scottsdale, both extremely of Arizona last space Bowl along and size view recently being we the open domestic transformed Additionally, ahead STK new great STK accommodate Super vast Phoenix of of and in The in capable floor the the features which make wide and

by for start this the rooftop. incredible new We encouraged are

X expansion. REEF in future vessels Kitchen locations X a as bringing of we Lastly, we opened have recently total evaluate additional Austin, it to

As pipeline the estate. environment, The history an XXXX, construction Despite to of challenging XXXX a year will best the in new real extremely venues. rest an intention we to company. of forward we incredible have busy be our look is as X XX open to of high-quality the

Henderson, Florida; open remainder in to to in Utah; Arizona; new plan the For the we of X Aventura, following Nevada; Boston, and Charlotte, the to X Oregon. Tigard, Washington, Kona company-owned North Philadelphia, Pennsylvania. Riverton, and Massachusetts; X year, And Phoenix, cities: X following cities: STKs D.C.; the additional Grills Carolina;

STK. adjusted Finally, in end XXXX asset-wide and of XXXX our we significant a thereafter, to along run and the rate factoring X we anticipate rate open EBITDA openings, plan with run development, our by pipeline increase including managed When or licensed XXXX. immediate in revenues

addressable story including XXX least growth begun. long foresee Kona Grills of has Restaurants market and We XXX STK our XXX a total at As least domestically. stated, we at globally have restaurants, just

of and be new the incentive and high-margin requires streams. fee and long X Grills management royalty, a per units term, new STKs, produces X licensed owned managed the to Kona Over and capital X units investment lower This which venue X to X F&B and blend is target year. will

our XXXX despite our a results and To challenging very is pleased I'm with environment job. fantastic conclude, restaurant a doing team

the to turn back Now, Tyler. call I'll

Tyler Loy

Thank Manny. you,

X.X% year. is STK restaurant same August revenues in which in our Let same me were for owned the in financials last $XX.X The of Included $XX.X X% the of of STK primarily fourth detail. XXXX year. total quarter million discussing from and GAAP in greater Francisco quarter revenues revenue opened increasing increased $XX.X in quarter $XX.X increase net Total is for start revenue by our San November million million, from opening the Dallas XXXX. million that attributable to last of our

X.X% quarter sales comparable XXXX. compared decreased consolidated for to the Domestic

For sales versus STK, comparable and were decreased X.X% XXXX XXXX. flat comparable Grill sales versus Kona

continues a lapping shows XX.X% our that STK increased comparable As Kona comparable strong in And consolidated comparable relative our sales guests. XXXX, Compared XX.X%. reminder, experience sales resonate domestic with our vibe differentiated to XXXX increased and we sales sales which base are XXXX. year, incredibly increased to pre-pandemic XX.X%. comparable Grill to XXXX dining

revenue and in decreasing quarter our in properties XXXX. from decrease revenues of million, $X.X November fee result incentive England, $X.X license were the This London, Management in million partially managed STK of by of decreased XXXX. X.X% primarily existing Stratford the offset of the in is opening fourth

competitors. operating of industry. offset points operating low mix consistent driven price of increase management net percentage This and the with of restaurant revenue to and Owned XX.X% due fourth fourth a expenses, of restaurant commodity as a to by quarter year prior fourth both in single-digit by to XXXX from as XXX the a consolidated by XX% August our quarter XXX primarily average compare have restaurant restaurant XXXX. of increased was increased the to both owned revenue of in of increase We partially increases, in due owned the to prices. those prices XXXX of XX.X% XXXX in brands to XXXX menu inflation for believe we basis higher November expenses price we partially pricing price percentage a wage decreased XX.X% mid-single-digit our offset Owned and that power of sales increases basis compared points additional as cost the primarily in net quarter in

approximately operating XXX quarter. to basis quarter Restaurant to Grill decreased profit in the profit points decreased fourth decreased basis XXXX was quarter operating robust XX.X% XXXX. the of points was profit points XX.X% XXX and at XX.X% of and STK a fourth basis XX.X% the for but Kona operating for XXX still compared Restaurant

$X.X On in offset year. decrease and variable in performance-based expenses. administrative reported ahead stock-based additional compensation compared a The basis, a and to increased was prior fees the increase partially to million accounting investments increased growth, compensation of $X.X and expenses attributable were by legal general expense, total million

hotel the travel increased due addition, experienced expenses company cost. airfare rising and to In

construction. related primarily XXXX; XXXX; January payroll, cash are adjusting which currently fourth noncash for STK and was to and Grill This November quarter When the the same compensation, expenses for XXXX were of to in stock-based adjusted year. administrative expenses $X.X general million $X.X were of which $X.X opened preopening compared and the of that $X.X opened in in under year. in prior Columbus last and million Preopening million in Dallas million training and venues Kona quarter other increase rent

in Interest $X.X to million the increases quarter tax expense Income quarter XXXX. was rates of in XXXX. $X.X $X.X in tax million XXXX by fourth year-over-year. XXXX million driven of fourth the benefit the an quarter of fourth quarter of compared increase income expense The compared was for benchmark in the of million fourth was primarily to $X.X

annualized XXXX tax effective X.X%. Our rate was

in share an share adjusted The attributable net or income a adjusted share. was share. per to of One or $X.X net income or $X.X adjusted $X.XX of adjusting income million net of quarter income compared per for net nonrecurring $X.XX Net When or million fourth $X.X in the Hospitality, income XXXX adjusted to quarter income expenses net to of XXXX million Group fourth gains, Inc. million per $X.X the $X.XX income compared $X.XX net net or per income was

was compared XXXX. to quarter fourth Inc. in the for quarter EBITDA to Adjusted million fourth The Group $XX.X $XX ONE Hospitality, million attributable of the

in EBITDA XXXX We earnings adjusted year have in and of release. a reconciliation fourth our full tables quarter the included

repurchased on program we during X, remain we of purchased our stock. under and purchased available X.X the XXXX. in repurchases million fourth buyback In under million September program first share $X.X approximately of have XXX,XXX an approximately repurchase the shares quarter total, million common additional We XXXX. shares shares $XX million During our announced share X.X X the XXXX, of months

in the time to shares time, purchased We all. use if to continue discretion be will under which determining conditions from at may

factors filings. conditions some like numbers licensing our given outside risks subject a including licensees regarding company's of statements investors and authorities. uncertainties forward-looking our to the timing and remind factors the contractors, control, and and commentary always, of forward-looking actual SEC period business. is I'd of control This discussed weather landlords, to subject any and as We, associated as to our Now, under regulatory provide restaurant in number commentary the new is for openings with

on the we of expectations XXXX. for the are today, providing targets the information as you financial now with Based following available and

to as expenses between XX.X% million revenues project revenues of preopening of an $XX.X and restaurant between million $X received and and license percentage XXXX; of owned venue $XX Beginning X million; managed, rate of $XX.X expenses our revenue landlords. revenues, million; approximately including approximately million, X and to excluding including million total income $XXX which of owned between G&A to income Restaurant. we expenditures operating million of represents to operating million tax of $XX to venues $XX incentive net to to of new XXXX, and total GAAP and between $X.X million million consisting X% million a $X.X XX%; from between be $X.X approximate and with effective plan STK fee $XXX $XX of compared restaurant X% net to capital company-owned stock-based or million; of revenue licensed we EBITDA allowances compensation XX%; to XX% an XX% $XX increase XX million adjusted total managed $XX.X And company-owned new million; open per in finally, approximately

I Manny. to the back now turn will call

Manny Hilario

thank and you for time your Tyler all you, today. Thank

we proud that truly XXXX in performance our Let me for saying are conclude are excited and of we by XXXX.

our We the compelling as portfolio long-term stages with growth to early our build are for of high-volume, of shareholders. we continue high-margin strategy brands a in returns

guest by all, I'm life bring exceptional restaurant They every every teammates unforgettable our every market our to do best mission be who every time. to experiences and grateful delivering where to this in to guest the operate. day Above we

our the and vibe-dining visit continue enjoy highly like can restaurants I return our been craving. they differentiated to they to also to have thank that so would experiences that customers

questions everyone We may Tyler call us on Operator? are joining appreciate any and the today. you answer to I have. that happy

Operator

Capital. question from Lake Instructions] Our Street [Operator from Mark first is coming Smith

Mark Smith

if guys regards what dollars? the First you in restaurants in maybe the one then pipeline for on construction, any headwinds out you is, permitting for locations are talk me like, any about new to headwinds look TI getting what development that seeing them you're can open? And there seeing

Manny Hilario

Yes.

good deals for least of continue to see is, at a TI So Mark, in from terms we're us, seeing what very we perspective.

still that So high-volume that of are those type I for think looking think available. funds operations. I are still developers

that's think very I still So favorable a market.

because some I definitely about if right just the that to say that's challenging, have deal I in been the construction, of to equipment the said in actually you do hard for of down time thoughtful the equipment to you equipment. as challenges of that mean making We've -- would prepurchased purchasing able of of we I one that But prepared in on area, probably terms one of it had some now that with -- and our anticipation some stores future But get In to to of we've equipment. that. some just very is aggregated getting there's sure some statement. probably our and our times it's be narrow

our probably to biggest relative say So that's I headwind development. would

Mark Smith

at Okay. What kind main margins are in we points any And look of see good were pressure you for you guidance as kind here. that the them if XXXX, to on XXXX? kind margin of restaurant-level some rank kind putting pressure then of you of gave

Manny Hilario

probably is margin inflation the really from answer of the I'd a So risk of perspective question levels.

the still we're they but over in think year price a last right certainly have than less what seeing I been XX now, months. increases historically

So -- happens be with to really on pressure the going margin the is that what inflation. point always is

has I us, that frankly think stabilized. the I labor pressure which point for has think been biggest

helpful. industry. actually It's labor I their lot actually some instance, of individuals the pool -- off been talented for coming of pool with a think has that or off not taking Amazon increasing labor the pressure their diminishing

So is the really, unknown. labor big

previously, So long-term for for out fully to now we a restaurants more labor lot advantage said our that's think be I competitive us. think and continue there's staffed a there it's right as which good And us. we

Mark Smith

for we these you solid. STK one you expect think But open then as that if these consolidated on the new last in units, you Kona margins pressure the kind talk restaurants, couple of that the look the to about restaurant at Kona really look new at And they're just as first about, months do open? average sales Perfect. you we maybe can and pressure separately, of new me, weekly kind margins opened of

Manny Hilario

I so mean -- Charlotte, STK, we up our pipeline got is with coming starting Boston.

very We good revenue have for really will think restaurants what be we us.

all. coming of point STK pressure any expect don't I So out at

Kona frankly think solid the year the done I think from the margins which will there. was did we opened we of -- with be the open very that I exceptional And has guests Columbus. STK. slow get-go considering we're super Columbus in Grill, our encouraged the velocity in month January. of

and think think new And new I guidance view the overall that from I our for on answer expect the would don't my reflects stores. year so stores I be pressure our that

Operator

from Tyler question from comes next Our Prause Stephens.

Tyler Prause

quarter. the on Congrats

if entry-level luxury So allowing season. please. large an this some mix as to more the such you on through consumers to discussion going strength of has focus seeing as you're of your really appreciate compelling region your consumers a see or management variance trade could what providing earnings notable the affordable they by seeing industry-wide And points price of you any talk during was been And daypart? consumer trends about are concepts. point call-outs, or for of and I X But maybe we trade-down,

Manny Hilario

Yes.

product. appetite we occasions demand only think see the probably social nights, ago noticeable business including the the today months of weekends focused very for Friday, have say Sunday. the our and we do tremendous So from perhaps lots are good through see Saturday maybe because X date different business factor amount and would so thanks, I particularly of probably Monday a super I of that a and build question. Tyler robust, I is on

the I I the think making Mondays going that through not on that might Wednesday, I days about -- those week. or if do think where out of there's think -- there be more place a decisions is consumer

think a I that pointed and $X compelling. you particularly Happy out super program, price points, Hour is $X as However, there, $X, our with

So see Hour. days still in strength those we tremendous on Happy

we of are out that way as out And into business. for to people our know, coming dinner the you go that. So convert

say that very I Sundays is important a the is us, STK for very And about I consumer, particularly clearly on which think good would we price then becoming thing a that do daypart on, focus the and brunch only is point, for particularly brunch brand.

Surf in behavior we STK they're So we see the Kona people the we because a & lot more restaurants, Kona of the don't less that the Turfs doing is trading to about when daypart very a point. of that is that do see brunch higher Grill, brand overall, from And actually do We doing believe good. the in-store up price we excitement that the But actually at do see STK and brand. which not they're either. see brand product on at customers

having managing that's we're So the think -- behavior I consumer this mix. perhaps great by

So we've that's seen. what

So that, more of But restaurant. managing experience visits great the towards great all it's we've little a velocity a other a than really weekend. and the seen basically bit about in product

Tyler Prause

I've beef in Wonderful. you're one just XXXX? how remind up on I of how And shaping those appreciate contracts got currently of follow-up, shifting are us that. you here. kind kind Could and specifically commodities, contracted gears

Manny Hilario

question. Yes. Good

And beef, pricing for So we XX quantities next XXX the for have out arrangements with contracted very but do stable that -- actually, we to relatively us, to be don't our on have days. seems vendors. stable

we and so been very shrimp products. that and able to lobster The pricing, particularly in good actually lock and we've lock frozen other actively seafood, the at seafood one is seafood

we're I quantities, last think year's or would we say, pretty pricing we're that work doing we stuff the overall, prices. actually I to favorable -- or good, very So actually lock and equal in

Tyler Prause

kind call the know during price ran you price of one quarter a on bit perspective? final the question little but the that And Awesome. here. touched just what was you fourth for I

Tyler Loy

each that's consolidated a From right pretty across and X% perspective, it's brand. consistent Yes. around

Operator

Setyan question Securities. We Nick Wedbush from from a have

Nick Setyan

just just Can particularly far thinking we of when progresses? And you given just the negative first categories? as trended Is industry things brand X% in compares, guess, you're comp there, how think driving then and across all have tough Kona it almost double-digit, And internally hone QX transactions? the strength thus all? pricing in comp? And then on what's about presumably kind in about so of maybe the XXXX negative the that, I Kona the that's just how

Manny Hilario

no fourth so I Kona is in presumed double-digit there Yes. mean traffic in the quarter.

are the mid-single on think they I digits in the down. traffic

So -- fourth quarter very for is Grill the strong but the Kona reality a is XXXX. we comp for were in going that up

recall, XX% fourth relative quarter XXXX were may was the you As we in Kona up which pre-COVID. Grill for to

quarter very, would a would that did very year, Grill's say industry. excitement say in So [Indiscernible] if amount last casual not tremendous prior obviously, Kona we of against be for And year, would best Texas maybe of evaluate had of class were, is I the comp to one fourth But we best, in top that year. if the going in this I we're from up well. the I that then ex

it And a year. this so lap hard was very just

look Grill, As very XXXX start the year. with at the I'm I encouraged of for Kona

the sales. relatively fact, And flat Grill a new then for quarter-to-date, at unit As performance $XXX,XXX. of is the some from matter strong same-store and we have year-over-year Kona on

the a for very actually good Kona a Grill $XXX,XXX week result is think, industry. I for

I quality fourth XXXX, in year the So as Grill digits. for mid-double of the the as year the coming in fantastic look sites up and Kona new we're for I'm for particularly the look well looking rest this I out, of margin as quarter, Grill at if the a at Kona

the I quarter we're think for XX.X% the margin. on at

And obviously, the think that from pricing has the of third an the margin. So also quarter done the I concern And that coming helps. team the that exceptional job on working think I was margin.

So I'm super excited Grill. about XXXX Kona for

Nick Setyan

to the at going was sort of of margins I the then And Okay. trajectory Kona. about ask

'XX the you're terms restaurant-level in Kona -- of contemplating. in guidance of both through implies overall guidance in the kind at walk expansion the inflation you us the brands the guess kind some and margins. I of just that expect pricing Maybe So

Manny Hilario

Yes.

current the any right what difficult to in And So in have our we've we that year, -- more it's get accurate moderate a the I out pricing that for And X in rest particular in don't lot implies model. quarter progress [Indiscernible] mind inflation is And much that. with of now, for between additionally shows, as the going the pricing on adjustments again, right in Grill. Kona number to it our year you're made X we and to always that's we've environment. business But we are permanent done margin we of the guidance to the points grow. that have made now as Tyler thinking look And to made so somewhere for progress. fourth

mind the designed Also that the the and labor- and labor Kona you Grill which if is new new a been sushi design, keep be haven't to user. to is restaurants restaurant the in one shrunk new in bar yet, We've margin-friendly. heavy

come into think as the design very brand restaurants some the I think you will of margins. the coming see nice to So I new play, really mix

the I new is prototype think XX%-level margin. the in

to for in so margin the And brand path the kind that's that Grill should working I stores we and the have I new the the of volumes will be additive the AUV for Kona and brand. improve sales now for that yes, continue think is the mean

Operator

Our question from comes JP Wallin from ROTH MKM. [ph] next

Unidentified Analyst

year. I bit. units last just on maybe pushed I If was I little recall, I'm just The and this correctly. just we you sure kind for the understanding could if to had something is year think with Kona. X we start Maybe from in a want X of to of hoping into that the units I X make at could expand XXXX idea range development pipeline

And had coming in expecting kind more of XXXX. to we're have so few maybe a

just call can you the right X maybe that X to is anything number? out and confirm there So

Manny Hilario

have we so mean I Columbus. Yes. opened

which almost almost And really Phoenix, is we're we And pretty least is next Tigard in Nevada that's Washington Desert one built. then so in now in built. also much we're Anderson that Ridge also the doing already on, next have progress. then State. at And Riverton then we're one is working left on. in working have And is the then that pipeline, But -- we Union, the Lake

have it's matter them. and those process sites of just all we in opening So a the

our as when these the to we discussed open So we sensitive neighborhood restaurants. we've in past, are very

couple we're that surrounding that. just a waiting Riverton, a get with will of that weeks here. much won't then we place to more feel Desert So And here be after to I market and the Ridge comfortable open where

commitment's X our So to X on Kona Grill.

You the are X. did this correct, the push beginning we did We push year. of openings into

to end beginning at So the we're going will through towards quick working of and the remaining year those XXXX. pipeline the get here relatively the we of on start then

Unidentified Analyst

kind I'm a that talked that of -- curious anything any and of And Okay, you the targets great. last and kind that, parties, STK, plans we're just business I mean holiday earlier could like that thoughts a us for bit little kind you event anything we And events, your went, I if want second kind holiday kind whether now there? QX. that just event tell we about there's for how to about XXXX of through or think what just changes year, of a If gives to to can of little your that. corporate for could of talk kind bit turn business

Manny Hilario

Yes.

So as to the business I we've continues build. previously, think discussed

So that we momentum do have positive in business.

have the -- that. in weather bit December, think did a it into actually quarter. would I although some which and And we we've -- But seen I put would comments, of really type of the think promising and the up, the not our I events. think for on I year, positive were convention books we on very lot, those event there. business stuff in XXXX, on I very a say too strong good this Vegas, weather guy business particularly, Vegas as that that perhaps fourth talk little a coming I'm -- a some has harsh the I of say already Orlando, business prepared damper spark of said overall, a on kind been don't think I about going very say the quarter, and weather I was would in and really the

So outlook this I the -- think favorable that that for is very business year. our

STK really Although the become also there, owning has and date perspective, part particularly in discussed that I a very holidays from brand, night an as of cities. strong owning

about But and anyhow, excited business that. I'm a outlook for this strong far by year. So very

Unidentified Analyst

I sneak one one Great. And last in if could just there.

to things out call kind you're learning of Dallas going as great Francisco, the San Just strength anything and great the you're new to be you're Would just the there at you is there, share know away about taking what seeing can upcoming. what and you are about so openings, there? just why think

Manny Hilario

of on so all, mean -- credit the I to, first to like give I'd brand those openings.

grown brand people we because So when think bit. know restaurants, were really have a coming well out quite those I we to opening the

we the think I defining just awareness way our go the brand So geographies. and that about

Dallas we're is a for So great steak. -- very city very complementary,

And for so cities STK. development terms in of we're picking really some great

and being real geography think the estate the I and cities So combination of there. as brand well as quality that, of

would an thing marketing I of the last have, in say openings And our is always has the digital. the incredible focus opinion, my on we And success then, digital-marketed on really been brand. become

So lot of openings. social, we lot a -- about to excitement and these of excitement are a of lot able create through a

things the to think revenues. I great those these opening combination has of So led really

returns. these those I less XXX to of payback of as XX% get only our on prepared XXX than Again, these we type restaurants we At are think expect to kind volumes, to in statements, our year. mentioned X

we Tyler can problem short pay it's them here to that period. have in So back for very a good that

we'll cities real estate. And continue it's components. X those So and again, great of them big pieces opening in

and -- well. So does brand still very the

a I good year expect that very in we will So development have XXXX.

Operator

Financial. a Lipton We question have Lipton from from Roger

Roger Lipton

give in next facilities? And you to of terms -- be feedback STK us several the going can more or on openings, the Just, managed Manny, just little company-operated a openings? are they

Manny Hilario

Yes.

be will have then next D.C. all Washington, the a sequence estate. Florida is those real Charlotte, in Boston, all we So company-owned and Aventura Philadelphia, and they're also which and

about excited those super we're locations. So all

Roger Lipton

And roughly, they open? when might when --

Manny Hilario

X Boston month plan close finish we about then is a we come will X Charlotte months could X be to to And other ones very the after to and each thereafter other. Charlotte. weeks

So openings that's timing for at look those. kind we -- our of how of

Roger Lipton

net cash current your crop stores? the what's of And this out on investment,

Tyler Loy

so about Yes, million is net typically units new STK Roger, Yes. this so anticipate be we to roughly. Tyler. $X.X

Manny Hilario

Excluding preopening costs.

Tyler Loy

Yes.

Roger Lipton

Right.

Okay. environment? are your escalated within -- rents this you And have inflationary

Manny Hilario

least a answer would say I us, is really at not for that Well, this the market -- is read.

STK the even that for to on I high competitive I because some think able Kona demand think for we've particularly in Grill, and rates very get of rent. us, been

answer actually are good I some to is -- So has think into. what in cities relative we're the levels of going historical very that our our been my rents

So I on the inflation. rates seen of any rent impact answer have the because not is no,

Operator

session. to over this question-and-answer I like Hilario, for turn would CEO, And back concludes our conference any Manny closing to remarks. the

Manny Hilario

to mission every restaurants Thank time. the you. incredible call of focusing our here to always, guest And great want every our every day, I operating close thanking job exceptional team experiences as do unforgettable on by and which an incredible and guest living

of on call the company thank interest for I run and Thank for everyone call. you weeks. in you, being of And I'll And being an having for the that. all today. in I'm our in thank to the want everyone, sure into on So our couple also then restaurants next you

Operator

today's attending you now much has for presentation. conference Thank The so concluded.

You disconnect. may now

The ONE Group Hospitality, Inc. (STKS) 9 Mar 232022 Q4 Earnings call transcript