| Segment Reporting |
Note 15 – 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 restaurants and ONE Hospitality restaurant locations, as well as management, license and incentive fee revenue generated from the STK brand and ONE Hospitality restaurants.
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Benihana. The Benihana segment consists of the results of operations from Benihana restaurant locations, as well as franchise revenue from the Benihana brand.
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Grill Concepts. The Grill Concepts segment consists of the results of operations of Kona Grill and RA Sushi restaurant locations.
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The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), manages the business and allocates resources via a combination of restaurant sales reports and operating segment profit information, defined as owned restaurant net revenues less owned restaurant cost of sales and owned restaurant operating expenses. The CODM is not provided asset information by reportable segment as asset information is provided to the CODM on a consolidated basis.
Certain financial information relating to the three periods ended March 30, 2025 and the three months ended March 31, 2024 for each segment is provided below (in thousands).
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STK |
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Benihana |
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Grill Concepts |
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Other(1) |
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Total |
For the three periods ended March 30, 2025 |
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Owned restaurant net revenues |
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$ |
54,866 |
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$ |
115,341 |
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$ |
37,086 |
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$ |
105 |
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$ |
207,398 |
Owned restaurant cost of sales |
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(13,109) |
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(22,096) |
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(7,912) |
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(3) |
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(43,120) |
Owned restaurant operating expenses |
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(31,621) |
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(70,359) |
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(26,749) |
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(46) |
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(128,775) |
Restaurant operating profit |
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10,136 |
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22,886 |
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2,425 |
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56 |
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35,503 |
Management, license, franchise and incentive fee revenue |
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3,193 |
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469 |
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— |
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69 |
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3,731 |
General and administrative expenses |
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(11,459) |
Stock based compensation |
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(1,632) |
Depreciation and amortization |
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(9,829) |
Transition and integration expenses |
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(3,719) |
Pre-opening expenses |
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(1,681) |
Transaction and exit costs |
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(69) |
Lease termination expenses |
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(71) |
Other expenses |
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(45) |
Interest expense, net of interest income |
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(9,822) |
Loss before benefit for income taxes |
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|
907 |
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Reconciliation of total revenues |
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Owned restaurant net revenues |
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207,398 |
Management, license, franchise, and incentive fee revenue |
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3,731 |
Total revenues |
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$ |
211,129 |
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STK |
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Benihana |
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Grill Concepts |
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Other(1) |
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Total |
For the three months ended March 31, 2024 |
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Owned restaurant net revenues |
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$ |
51,356 |
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$ |
— |
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$ |
30,149 |
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$ |
3 |
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$ |
81,508 |
Owned restaurant cost of sales |
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(12,353) |
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— |
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(6,355) |
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(6) |
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(18,714) |
Owned restaurant operating expenses |
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(27,896) |
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— |
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(21,733) |
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(9) |
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(49,638) |
Restaurant operating profit |
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11,107 |
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— |
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2,061 |
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(12) |
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13,156 |
Management, license, franchise and incentive fee revenue |
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3,396 |
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— |
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— |
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|
91 |
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3,487 |
General and administrative expenses |
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(6,176) |
Stock based compensation |
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(1,358) |
Depreciation and amortization |
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(5,260) |
Pre-opening expenses |
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(2,914) |
Transaction and exit costs |
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(1,523) |
Other expenses |
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(32) |
Interest expense, net of interest income |
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(2,078) |
Income before benefit for income taxes |
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(2,698) |
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Reconciliation of total revenues |
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Owned restaurant net revenues |
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81,508 |
Management, license, franchise, and incentive fee revenue |
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3,487 |
Total revenues |
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$ |
84,995 |
| (1) |
Other includes sales and expenses that relate to STK Meat Market, an e-commerce platform that offers signature steak cuts nationwide, the Company’s major off-site events group, which supports all brands and venue concepts, and revenue generated from gift card programs.
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