| Segment Reporting |
Note 12 – Segment Reporting
The Company has identified its reportable operating segments as follows:
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STK. The STK segment consists of the results of operations from STK restaurant locations, competing in the full-service dining industry, as well as management, license and incentive fee revenue generated from the STK brand and pre-opening expenses associated with new restaurants.
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Kona Grill. The Kona Grill segment includes the results of operations of Kona Grill restaurant locations and pre-opening expenses associated with new restaurants.
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ONE Hospitality. The ONE Hospitality segment is composed of the management, license and incentive fee revenue and results of operations generated from the Company’s other brands and venue concepts, not including STK or Kona Grill, which include Bao Yum, Heliot, Hideout, Radio and Rivershore Bar & Grill. Additionally, this segment includes the results of operations generated from F&B hospitality management agreements with hotels, casinos and other high-end locations.
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Corporate. The Corporate segment consists of the following: general and administrative costs, stock-based compensation, lease termination expenses, transaction costs, COVID-19 related expenses and other income and expenses. This segment also includes STK Meat Market, an e-commerce platform that offers signature steak cuts nationwide, and revenue generated from gift card programs. The Corporate segment’s total assets primarily include cash and cash equivalents, the Kona Grill tradename, and deferred tax assets.
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The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker, manages the business and allocates resources via a combination of restaurant sales reports and operating segment profit information, defined as revenues less operating expenses, related to the Company’s four operating segments.
Certain financial information relating to the years ended December 31, 2023 and 2022 for each segment is provided below (in thousands).
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STK |
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Kona Grill |
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ONE Hospitality |
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Corporate |
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Total |
For the year ended December 31, 2023 |
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Total revenues |
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$ |
198,679 |
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$ |
131,716 |
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$ |
1,999 |
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$ |
375 |
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$ |
332,769 |
Operating income (loss) |
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38,890 |
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|
2,189 |
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|
187 |
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(31,972) |
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9,294 |
Capital asset additions |
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$ |
28,426 |
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$ |
21,450 |
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$ |
123 |
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$ |
3,551 |
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$ |
53,550 |
As of December 31, 2023 |
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Total assets |
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$ |
153,769 |
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$ |
97,840 |
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$ |
5,868 |
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$ |
59,768 |
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$ |
317,245 |
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STK |
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Kona Grill |
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ONE Hospitality |
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Corporate |
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Total |
For the year ended December 31, 2022 |
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Total revenues |
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$ |
187,402 |
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$ |
126,341 |
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$ |
2,344 |
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$ |
551 |
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$ |
316,638 |
Operating income (loss) |
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40,343 |
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|
7,217 |
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|
1,282 |
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(32,536) |
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|
16,306 |
Capital asset additions |
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$ |
19,116 |
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$ |
10,496 |
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$ |
139 |
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$ |
2,878 |
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$ |
32,629 |
As of December 31, 2022 |
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Total assets |
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$ |
113,911 |
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$ |
78,691 |
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$ |
5,746 |
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$ |
92,676 |
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$ |
291,024 |
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