The ONE Group Hospitality, Inc. (STKS) experienced a boost of 7.69% in the premarket today. However, the last trading session closed at $14.95 with an incline of 0.2%.
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Third Quarter 2021 Financial Results
STKS announced third quarter 2021 financial results on 4th November 2021. From $39.6 million in the third quarter of 2020 to $71.9 million in the third quarter of 2021, total GAAP sales climbed by $32.3 million, or 81.6 percent. Moreover, total owned restaurant net sales grew $30.1 million, or 79.7%. Solid sales momentum as state and local governments reduced seating capacity limitations in the markets where STKS operate, as well as strong execution of sales objectives, contributed to the gain. The consolidated comparable sales climbed by 78.9% from the third quarter of 2020 and 44.7 percent from the third quarter of 2019.
Administration, licensing requirements, and incentive fees increased by $2.2 million, or 123.7 percent, to $3.9 million in the third quarter of 2021, $1.7 million more than the third quarter of 2020. Last but not least, the launch of two managed STKs, one licensed STK, and three managed F&B venues in 2021, as well as local governments reducing seating capacity limitations in the marketplaces, all contributed to the growth.
Now, what’s next?
It’s a remarkable achievement to achieve all-time high sales for the second quarter in a row during a pandemic, and the company couldn’t be happier with the performance. As the visitors indicated their excitement for distinctive VIBE dining experiences, STKS saw large comparable sales improvements in both 2020 and 2019. The average weekly volumes for STK and Kona Grill for the quarter were $285,000 and $99,000, respectively, due to excellent comparable sales.
In addition, despite persistent commodity cost and labor staffing headwinds, STKS crossed the $100 million barriers in total food and beverage sales at owned and managed locations this quarter. Lastly, the company also emphasized restaurant staffing levels this quarter in preparation for a busy fourth quarter.
Appointment of Independent Directors – What’s going on?
STKS stated the appointment of two independent directors on 14th September 2021. Susan Lintonsmith has worked in highly competitive consumer markets as a strategist and branding specialist for over 30 years. Moreover, she is the Chief Brand Officer of AtYourGate, an in-airport order app and delivery service for passengers, flight crews, and airport workers. She was the CEO of Elements Massage, a national massage treatment chain with over 250 sites in the United States and Canada, prior to joining AtYourGate. Lastly, she previously served as CEO of Quiznos, a worldwide sandwich brand with franchised locations in 32 countries, where she oversaw a turnaround strategy that led to profitable growth following years of shop closures and dwindling sales.
In addition, Haydee Olinger has more than 30 years of expertise in corporate law and commercial operations, including strategy development, real estate lease and purchase transactions, franchise and licensee management, food safety, enterprise risk, compliance, and privacy. She is presently a Senior Advisor at Baker Gilmore, a legal and compliance executive search and advisory business, where she advises, coaches, and consults Chief Compliance Officers and other corporate leaders. She also worked at McDonald’s Corp. for over 30 years, holding several legal positions.