STKS - Earnings call transcript Q3 2024 | The ONE Group Hospitality, Inc.

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Operator

Greetings, and welcome to The ONE Group Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Tyler Loy, chief Financial Officer, The ONE Group Hospitality, Inc. Please 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

or of revisions also that these events. undertake financial only these date light and the of call. in note forward-looking We opinion for any We Please of you to impact of new detailed the obligation could results no publicly more operating condition. forward-looking statements filings revise SEC refer our to as information or of future that risks statements reflect future our a release this discussion recent our

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

results in GAAP. be However, as a the should information presentation for not in other of measures or isolation or prepared accordance considered these substitute with

For beverage with reconciliations comparable we food GAAP franchise along such total to adjusted of EBITDA, discussion useful, owned and sales operating release adjusted and income, units as restaurant today. consider earnings that managed, net these issued license profit, are measures, and read and of why measures please a sales these measures, our

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

Emanuel Hilario

Thank everyone. The us joining for and today your all Tyler, Group. ONE in you continued for you, interest hello, Thank and

global is vibe memories me in to to exceptional in experiences me what mission, Let and our recognizing guest time becoming dining. vision team of confidence guest unwavering begin by through gives every the our every our Their leader amazing creating great members. commitment unforgettable

we our we've dining vibe report, platform excited experiential first quarter's are with our brands. RA the And exciting by recent Sushi. is a full been results combined to of the Benihana of and potential acquisition for call and This able centric

for the some third me quarter. by highlights sharing start Let

and Benihana million of full a revenues the RA First, million. with our by $XXX to Sushi, XXX% $XXX or increased quarter we record

restaurant by and restaurant level versus our businesses. margins performance our by points increased XX forma we tight important, management prior operating equally pro basis basis points, at driven cost their which year pre-existing XX and profit at improved of Benihana, XX% Secondly, robust

update, during million the the level on begun related to Next, impact restaurant run second we savings implemented costs. the discussed an Benihana run we've duplicate and rate in rate additional Since million $X quarter their support $XX we have in to synergies, then, annualized see margins. already

with and between quarter $XX short-term cash which And credit resources undrawn. is hand, finally, third finished million in we on over receivables the revolver availability, currently

at Looking the for priorities strategic remain. year of balance the our key

a on driving of strategic our our and environment experiencing macro focus fine a headwinds First, dining Like the dynamic at category, of through we're in by the others driven uncertainty. consumer pillars. all brands sales execution

guest guest As experiences unforgettable all culinary. continues every focus We that to our markets and is and the to do create industry by to and operations, strategic chasing of you great through X traffic be the and our mission look our to delivering best every in restaurants guest our memories discounting the restaurant around deep activity. all-the-happy-hours, Yet landscape promotional experiences from operating through and all-you-can-eat pillars exceptional marketing of time. on

on We peak during brands, maximizing our Fridays and to throughput peak we our turn all of and continue robust of and see across Saturdays days times and demand hours. reservations, focused are

late-night weekend our hotels of hours, X product radius continue to visits local in addition, business, to around with portfolio each are we across block the happy to brands. Concierge's, businesses outreach and brunches and drive of our mind emphasize ensure In launches, we store restaurants of top dinners,

of as all ever-growing From to the of everyday RA a we're database one perspective, marketing capabilities such at has we Sushi. value continue metrics messages, and we our many executing Benihana highest high to some launched drive $X as of $X also across Happy $X, digital and see a our been are leveraging restaurants. know our guest digital at and Hour, marketing level which We satisfaction

Customer loyalty personalized out enhanced celebrations on a approach of loyalty a for in occasions. ours. This guests's our be rewards continues across program to we the quarters, special will key emphasis coming And with roll focus special our birthday a guests to strategy, as to to marks our brands plan appreciation to And in visitors. evolution year, who our may twice significant those or to once customer our come frequent restaurants love with more a celebrate we a retention we convert our know brands. guests and

Moving culinary. on to

continue focused the enhancing be guest culinary extremely to experience. and on We innovation

Restaurants, Benihana for innovation early at out Benihana, guests believe For and premium the offering seeking very program many positive. Wagyu tremendous a rolled we We have is at example, is way our upside there begun. only just and for we

and during venues menu alive as seasonal come We our holiday exceptional are holiday of season. the our offerings, truly about excited lineup

strides begin Our the second successful impact quarter on this level We've and our Benihana the cost margins. to RA delivering of see made key and achieving initiatives. post-acquisition Sushi in Restaurant significant our target, synergies integration on is priority the and Benihana we

improved and achieving costs costs We duplicate are both through million rate in and consolidations. synergies level by nearing $XX run pricing across contract support restaurant eliminating

$XX costs. insurance headcounts, million seen booked operating progress supply X and significant synergies, broadline professional commodities and duplicate leverage in improved to synergies, and at eliminate purchasing eliminate services, annual we've least Areas deliver plan capturing

in closed integration, which careful of locations, portfolio in Kona X the with markets Sushi October, Sushi of Grill performance. we to our RA with RA part existing are have As of existing evaluated restaurants and X After goal overall we the Grill. Kona consideration optimize

substantial for grill supporting of retain these delivery takeout concepts. restaurants nearby through our the Kona a business We generated our expect improved amount and to in locations, margins Grill

In addition on driving initiatives of closures, the working operating are efficiency Grill. to at number sales and a we Kona

in currently Benihana we hours not hours are present staffing also for operations order where and hours [ maximize takeout ] example, revenues during of reduced to labor and virtual very to in and order streamlining are is results capture markets efficiencies. For the our shorter peak delivery testing early encouraging. We're Benihana happy in

Above cost overlaid our to [indiscernible] of Sushi and and operations, savings, have beyond brands. the RA strategic and Benihana culinary we pillars

our to sales are marketing We logistics, conferences Sushi. and at reservations, leveraging drive and performance RA Benihana core culinary digital and

In addition, development from a processes. restaurant support financial many systems internal reporting, have and and perspective, we human payroll, resources, other integrated

asset-light development Thirdly, balancing phase we are and growth, next focused of on our company-owned growth.

the consisting Grill, X X plan Water end South new open venues to and X Sushi restaurants, X by Social. Kona XXXX, STKs, X of We company-owned of X RA

our Grill in of also State we Oregon, at Kona Florida. managed an X October, plan STK. the we STK Bridgeport Aventura, city the of opened addition, in open in to In our opened in Then Tigard STK third in In Village. September, first we

matched setting focus the fourth refreshed on Today, Niagara to best-in-class the quarter, are in a Falls offerings. plan Water a Social, a we experience in falls. places and that STK concept, Canadian Embassy combining within Colorado, of Denver, a managed neighborhood. Soft the seafood Suites STK our new we Social we the [indiscernible] in the Cherry open opened side Soft Water With atmosphere of premium Creek the In on

and will plan we X Grills restaurants franchise Kona balance open licensed and Benihanas. managed to Moving STK growth and of to this annually and company-owned with asset-light forward, X

we concessions to plan stadium locations, business. X for where and grow we addition, we retail have In continue will and grocery to the explore Benihana opportunities

under conditions, sheet is priority availability short-term with key receivables flexibility liquid shareholders. the fourth over combining card and when our to credit which value not is undrawn. returning finished $XX our the hand, our We in current Lastly, and cash facility, the credit the subject remains covenants. any loan our balance Under financial to million quarter resources, term on revolving

continue opportunistic authorized we repurchases our share returned This repurchases, $X.X evaluate already program. we through approximately share to to quarter, shareholders Board million under and will

returns. sheet laser prioritizing flow maximizing sheet focused are and on We and balance our balance, cash flexibility generation shareholder our

are you path can on busy our tell, sales. system-wide very we've As and billion in $X been to now

Our cash with locations, generation, combined avenues unit strong our our disciplined asset-light economics proven and with provide free growth. strategies of pipeline for us multiple flow new

and on we value. long-term executing excited our remain strategy for We and the are shareholder future, focused creating will

I will over now turn Tyler. the to call

Tyler Loy

Thank you, Manny.

Let acquisition from any the discussing X, Please closed by May on in third me detail. quarter quarter recent which contribution financials start Benihana, was greater our of XXXX. the note, prior

of months Sushi. of RA X and from The has third Benihana contributions XXXX quarter

restaurants same revenues to Total quarter was year. an also was increase to and Kona The partially primarily in contributions the STK consolidated increasing and X.X% XXXX. of is RA revenue by were last Sushi. the increase since GAAP total Included million Benihana which reduction [indiscernible] from our was the sales. $XXX comparable October $XXX.X revenue quarter $XXX.X million due last The same XXX.X% year. for million, attributable This in offset Grill in restaurant for of increased $XX.X net the from $XX.X XXX.X% million, owned million from our

X.X% at decreased XX.X% and STK our concepts. Benihana, at sales Comparable at XX% grill

traffic Management, million the XX, from franchise X.X%. revenue XX, For license ended was revenues incentive contributed XXXX. the clarity $X.X minus September STK, and million X.X% in for ended $X.X September Benihana months XXXX. million increased X third to XXXX, X for months the restaurants at $X.X fee quarter during of

to which net of due partially This the offset basis addition the operational Benihana product cost revenue as cost inflation. mix RA that prior XX.X% reduction owned cost compared XXXX, Sushi, percentage includes of primarily pricing positively of the points third restaurant sales contributed revenue. to initiatives, year. a of XXX was to XX.X% and Owned to sales management, of of a and This percentage by increased quarter was restaurant also as cost in in

at basis Sushi of cost operating XX.X% due in in quarter addition Grill. partially percentage operating and of XXX quarter as of restaurant a third contributed Kona of and Benihana cost revenue. and includes inflation to reduction revenue from which the fixed STK percentage as net initiative a by operating offset XXXX RA to expenses pricing XXXX, costs, the and This points positively the also operational owned Owned increased to third restaurant XX.X% of

basis XX.X% a in general includes and quarter reported XXXX, administrative million stock-based Benihana. points or XXXX. administrative million cost million adjusting in restaurant expenses operating Restaurant profit basis, $X.X operating million for were and million the to XXXX from compensation, quarter increased $XX.X $XX.X On XX% general of This XXXX XX of XXXX. $X.X third third third XXXX, When profit quarter and at of to adjusted for increased to of XX.X% $X quarter the the third third the the respectively. and of in quarter compared of total in XX.X%

leverage the Sushi XXX to million As $X.X third to expense in a quarter administrative million $X.X general was sales restaurants, quarter and depreciation The associated Depreciation [ and in in basis maintained is improvement revenues, And adjusted X.X% restaurants. the for compared venues related to owned October the improved Benihana the and with XXXX. enhanced amortization RA the third realized compared depreciation ] to new points guest of in in have and XXXX, was primarily to due of The costs and X experience amortization. amortization expenditures percentage the of open XXXX. Benihana our X.X%. capital increase

the both $X.X XXXX. incurred and $X.X We the Preopening in $X.X in of quarter million XXXX, to consisting in transition million, expenses related of to nonrecurring $X.X of million $XX.X million transaction compared third integration year. compared million costs was Interest third of costs the quarter $X.X XXXX, million, totaling Benihana. were of of the and prior expense to cost the of and exit quarter $X.X in third million acquisition

of of to of adjusted XXXX stockholders net an taxes loss adjusted common loss share in provision $X.X $XX third [ $X.XX Adjusted available quarter loss compared the $X.X $X.X of $X in of the stockholders net in quarter available loss or $X.XX net share. the the XXXX. common loss was to stockholders $XXX,XXX net was and net to to loss third available share, stockholders per or compared Net for benefit adjusted to compared Benefit million income to quarter the XXXX million million million available of of net per a quarter in XXXX. common ] of per third $X.XX was loss million third or to common

theme the for quarter adjust EBITDA definition the longer quarter third XXXX. versus the attributable compared quarter third million definition, third the previous million in we million have was in third Group the $XX updated to $X.X Adjusted expenses. been to $X.X have adjusted quarter, year. prior our ONE EBITDA in note, for of $XX.X of Hospitality million, to Under adjusted EBITDA no would preopening the Please of

net included XXXX EBITDA, adjusted have We in historical adjusted our a of adjusted third income the earnings and reconciliation tables in release. quarter EBITDA

of During the spent third on million million shares. we the quarter, $X.X purchase X.X

our credit short-term not the revolving conditions, the undrawn. [indiscernible] covenants. Under available any card with loan financial finished cash under does in credit liquidity. have million which quarter to current We $XX.X Turning and and facility, term $XX.X our remains million

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

on projections the As same-store comparison quarter, we quarter today, the include for sales the until on previous year, the third acquisition excluding updating half enter XXXX information uncertainty. of rate as based less the improving we year, end performance. we third year's targets of The date our trends of discussions run from and target. the anticipated now are the back results, and of X, the regarding consumer Benihana and Based for the available fourth May our expectations

For run measures, calculations our please today. of release that issued refer was press back rate to

to a XX.X%. of operating $XX minus stock-based Beginning EBITDA and restaurant fee of and for adjusted percentage million, $XXX a $XXX same-store to G&A, our million basis, of million. million million. $XX we $XX revenues million, fourth quarter of the $XXX be of $XXX are $XX Total On between reflects revenue total of compensation we XX% $XXX franchise consolidated rate project anticipation between with expected expenses project approximately we sales of run net excluding $XXX GAAP and between to minus of Total license million GAAP adjusted revenues run revenues million EBITDA to revenues, total basis, a to owned million. Managed, $XX million which project million. and of as total X% owned rate On X%,

plan total expenses preopening rate expenses to preopening run excluding basis, EBITDA, of we Restaurant Adjusted and adjusted $XX and $X million excluding million venues effective Total of finally, from $XX allowances million An received income of between $XXX expenditures, preopening $XX million. XXXX. between $XX project between And million. million a we $X On to million. EBITDA, million. of of tax XX%. $XXX net landlords add to new approximately in capital of rate X

to I Manny. the will turn back now call

Emanuel Hilario

The your Tyler, and you, interest and time thank for you Thank today Group. all in ONE

term, in high-volume global dining. iconic macro we confident of our long-term facing and South headwinds are we While to portfolio in the the vision brands short remain be vibe undisputed leader in

we an are and Tyler entering exciting support. appreciate answer continued and may We be company's phase you would questions that your have. our I any to in journey, happy

Operator?

Operator

Capital. first [Operator question with Lake Mark Instructions] from Street Smith comes The

Mark Smith

to are -- to how in how compete about seeing first of negative Wondered as direct you're these of competitors, pick industry are then kind promotions? and environment? just kind able on what as going Can And talk just comp the how battle to you you far trends. things update your this

Emanuel Hilario

Mark. Thanks, Yes.

more I all we're competitors, Hour. So day seeing Happy direct mean

a some promotion our of day. highly all for become offering discounted competitors, that's big they're items think I

on So got seems lot dine that's been endless the of one -- at We've the a to and Chile. postables, burgers of them be have we casual everything.

We lot point price have competition a of there.

think we've I kind been So that's what seeing. of

the all to of obviously, you else, as on course, you guys there. QSR know the discounting then super go scale -- of and about everything And lower heavy

points. everybody putting very their So price is out hot

it We've Our Happy has do response Happy to obviously Hour. we done Hour. always been --

the that's of and competing Hour competing that so we've been hours, Happy been X one we're So the X to regular with during with. things --

$XX dinners been dinners [ with day, come that ] Grill, $XX those thing Kona SDK we competing at and with been every and offer beverage. The at has we second offer we've

pretty So we doing compelling but we've not a while. price think on that's been for point, ongoing basis, a that an

promotion a you that's Kona right pretty sushi to there. as that's will, launched So terms that and starting at well compelling some we're and And then on if now. our traction all-you we've hot there, on price nights, also of Sunday see Grill, in -can-eat

So the been are doing. of we've those majority what

at And think statements, is player we We in then, right now. as a discussed looking loyalty of we're prepared loyalty. our course, big

that's Cheesecake who's been think for side. you instance, if loyalty of on look example the an I at Factory, heavy someone going

here is our -- to the not heavy getting but question because discounting So the your on what to in economy. we're sector, job is sector one value other stay the of seeing

I think on that. we've bit started trends, the a to a see we're of to of see a starting stabilization bottom little of the

I STK. on only points that's we're to of think quoted some And of traffic, at this well at our traffic the We're STK, X value doing at our success with believe there. concepts, then everyday And X our if down actually look very part Tyler strategy. with on on I you

of think it's bottom the out. So I bit think I now, little that to again, a starting -- trend

a we As X% X% that negative We're for minus sales. on XX% guidance, out fact, of the saw you ] matter a probably our guided coming to same-store fourth of [ to quarter. minus

I our starting trends. So to of implies bottom we're kind a see on guidance that the think

Mark Smith

then Okay. Can some be may kind And get and open? as on some development seems restaurants process, like some of you just delays. front, talk we've these delays about try it that had to you of causing the the anything construction permit

Emanuel Hilario

on more the the development. side to think right statements, get on the I our want fact, really to prepared is now, timing of development growth mean we controlled I Yes. we asset-light by more mentioned as

keeping we're company-owned restaurants. pace so with And

communications. I think in we our mentioned X

that keeping we're it So pace. at

XX opened As a X days. we restaurants last matter have the in fact, of

really to can very XX a excel good think that a for again, time feel I model is which So And the say us. for spending good Benihana, I a There's that we comfortable last franchising at. more there opportunity lot it's really more about a XX with. -- at days pacing on we've we been them in pace would

And next in up then contract we're Niagara also Falls. opening management our

So And have on also working license we've we looking airport started casino there. now. couple and also opportunities have that we've well. for working been working potential then And a we've recently, deals some some that Asia. more actively And of been for we on right STK we're as opportunities management for

we're still deals. building on more actively but working our with we're that, management early pipeline license definitely Obviously, at

long, seen change In days. the XX last and we permitting terms -- but ago. X in months significant the seen we from Obviously, reported -- are on haven't a of the already that we've haven't change really from pretty X to within delays any meaningful cycles

Mark Smith

the one had or do lease do me. last Sushi, maybe your just see of of And end We Okay. others closures foreclosures you on the horizon? for potential or term at anticipate throughout the any RA system, you any the the

Emanuel Hilario

mean, the acquisition think one this managing said case, that, were benefits synergies of our of us the portfolio. significantly I think that is did X RAs I in I have Yes. on Kona as of one done we we statements, close having flexibility it to prepared our in gives And the and Grills.

made just those for us. so sense And

So in we've the sense. make that term the short ones taken care in

then these it always leases to sense cash stick we makes us Obviously, around. do has and continues commitment for as And be, not evaluate the location. we'll due, extension if to as flow do and know, been negative become you our

very portfolio really big of want and role high-volume, plays our that So we a successful build high-margin restaurants. to decision, a

also robust very So obviously will profitability there's and restaurant that we meet sales And we have just our on. pipeline. if move a screens, don't our

estate lower do that with real really estate. real high-quality we quality have always we replace So can the flexibility

restaurants. So strategy our ongoing portfolio it's of part just of managing our

Operator

The Inc. Jim with next question comes Stephens, Salera from

James Salera

because July. into the seems into kind of other throughout talked ask July then September, up down and the to first we kind step it of operators, wanted then maybe than worst when with sequencing still higher like restaurant August but I and step quarter the about was

possible, So exit the the if like breakdown XQ? give rate if you into monthly us it's comp could then and

Emanuel Hilario

going think year. Yes. in month softest sequencing Tyler this I back well. calendar that's seeing beginning color been quarter the the of typically, to a mean great on has is we've been let But I'll more first that of and question, the as the some any -- that this I then kind of add

we month and gets of third better seen quarter. first a every So softening it in the the And have then by second progressively month quarter. of

seen we've a rhythm So there.

month probably than thing other bit week first more seen week that calendar every And is we've a X, little the the softer to X. seems of that X be predominantly and

we to color at some lot rent, due progression Obviously, where seeing a to better. fact things end can on do has that that's pay are that. of we're the I of part think Tyler of that than it, And there's people month. softer So a getting think the with it add the there's and

a seeing you're Tyler, do bit more there? that, why don't do you what think little on you

Tyler Loy

Yes, Jim.

same which the So commentary the on we an cadence you trend, Augustn I that July followed a pretty throughout I had exactly by the think quarter, that choppy think dose. was that third saw the

September. I better think, terms then little bit a in and in much trend of worse

] So there. X% We of X.X% up. a end exit sense was the the should range quarter, the a from bit to kind October negative minus a quarter kind [ that's of [ guided act better And third guidance terms finished X% the how negative of of little at to that nothing kind you our give than for quarter of our of out kind that different of I ]. fourth to think implying in in

Emanuel Hilario

last And bottoming of look in how the X-year at lot just based trend couple stacks same-store think our seen how weeks is Yes. the bottom progression I sales. view a terms in on same-store up, on general, sales. of the in the And we've we on

the in guidance quarter, as again in we better think were we'll we fourth goes then and will So see than we our be that from what think the third, that thereafter. implies, once

James Salera

] could I for trends traffic if But a give total of about [ guys STK you Happy you and of was all combined composition these kind just Manny, And the the that or it and Great. are if just Hours of wasn't the any X.X% then think was number. in mix? talked so many -- just day Todd, for and gave that some I value if kind speak just sure the as seeing Okay. mix you relates you traffic, number, company. trends you price to And can to? offerings mix

Tyler Loy

Yes, Jim.

I for that negative about was traffic. a that X.X% STK, is would the we So on [ which what say for talked call, ]

been so [ guess And blended And I is -- have average everything ]. with sales, actually together. would in X.X% was I across you X would minus mix all more you line of probably if check traffic that there blend same-store those together, when have say

kind offsetting of you've average of offsetting any So kind got check of kind of product any mix [indiscernible] kind pricing

Emanuel Hilario

average, But we're points same on the about -- pricing, X running So brands? down the increases? right is exactly to the amount trade -- price on the we're check for as about getting the

Tyler Loy

Yes.

James Salera

the if I Just Okay. the maybe a different that What a term different rate growth do you unit play kind growth do high-level How one as of we think of environment, of ask for concepts non-company-owned more And is more about the I think for the near have think to question. stores? about opportunity and given the think stores? that in you maybe normalized noncompany-owned couple then consumers. could potential ignoring you a the

Emanuel Hilario

think I else owned would going look business back thought always evaluate XX% our we've if or be STK of how someone market, we by for the general to units back STK deal. over the or license that management mean, I we plan at

our about is addressable market think [ for I ] So XXX SDK.

just XXX, purposes. [ XXX for So conversation about call that's ] it, we think

about more can addressable as franchise looking we to of units. look now, call we think there. if get we start XXX out XX to we market at not units, And when Now XXX Benihana, probably we an

So think I there. how you'll see mix that's the in

deep Benihana talking the market just and at skewing people side license early general, probably more management understand of in franchise to talking that and -- Benihana, to we are out of fairness, starting trying how the growing in with so for kind conferences is. go towards STK to we're franchise to mix for So business. the and We're the people in and --

there's opportunity think we there. an So

opportunities the fragmented also terms market, we'll it Deneke we're operators. so have brand by in at small that line the we the look up some of with things we engineering, of very Habachy, some And that menu doing can definitely that

to an the reach So we utilizing there to think an some business. of start opportunity as operators and out of of Benihana brand and to bringing the there's opportunity drive the franchising that power smaller

Tyler I super excited about are and So, that.

other sports I in venues increase think And have we've we about and with more stadiums. lot Stadium a inbound Yankee that. and gotten some also Phoenix

So I opportunity Benihana are stadiums. great very in for -- think that's a successful they the

We franchisees with some in are also what we're America have who currently Latin strong brand. very excited the doing about

there's of America interest more franchising. Latin So lot a been and

give and our it again, estate. up comments, a take towards big going towards a prepared you'll in real as wait because estate not on play And will us in said a we more to our company-owned role development play great So see still allows us the have opportunities. role and asset-light of real frankly, or to opportunity incredible high-quality

we in So with does fill can't asset it of kind light. whatever do

Operator

comes next from Nick The Securities. question Wedbush Patheon with

Unknown Analyst

It' little implied see is the guide the QX and bit maybe current -- obviously, have uptick. good of an a to stabilized potentially indicating

look So as kind the ask various margins out [indiscernible] maybe guess maybe for that is about to in we of margins or for have a you're X-wall your maybe think the trough seen in should of better across how brands? we where QX. the brand And a shooting I XXXX, way terms we are to the target

Emanuel Hilario

question. great Nick,

guided That's actually think around in look the XX%. we've company. margins, for how We of I XX% somewhere right we're consolidated [ amount now, there's at we the XXXX, looking of for that. at a significant a think ] kind out as on upside

acquisition us. and clear obvious out found things have is we that synergies to very just for of One the the the been have

picked So and significant there's cost costs a up operating lot of of savings areas where goods. we've in

a able I you'll were ] scenario. and on margins see [ forth. improve think that down climbing to So sales XX% closer time, so to we margins our Remembering over Benihana

So that do you really we the within tells a have if you that good margin growth portfolio. opportunity will,

think the I XX% [ margins. getting to closer consolidated ] range you'll start us So seeing on that

the margins help of with work margins. because profile on what the restaurant frankly also Grill, the base Obviously, will doing our we're help doesn't overall is we're starting to the that which

there the perfect we in also our bit to the we and So think that. crystal I XXXX, is do for that plus. ball less. another stabilization for positive. also general, cater And little obviously, be of a will encouraging and is a the see that that But we is off nice we And interest don't XX,XXX for considering coming household net market have said think with what I earlier, rates the customers business in catalyst as in income very

that So get in mortgage card pull starts I and else everything back and the rates rates. to better interest maybe credit fees think

I really bodes XXXX. while going think that to a

Operator

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

Emanuel Hilario

right. you, us. the being business. for with all incredible support and again Thank your appreciate here We everyone, interest All once in

this always the by As I and work who say, of incredible only possible all of this in business. commitment our work is teammates

a So appreciative season. of in Thank look in all forward I'm you the all holiday quarter, our I very and wish that. you. great I restaurants fourth seeing And to you

Operator

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

You may now disconnect.

The ONE Group Hospitality, Inc. (STKS) 7 Nov 242024 Q3 Earnings call transcript