| 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 and six periods ended June 29, 2025 and the three and six months ended June 30, 2024 for each segment is provided below (in thousands).
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STK |
|
Benihana |
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Grill Concepts |
|
Other(1) |
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Total |
For the three periods ended June 29, 2025 |
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|
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|
|
|
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|
|
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Owned restaurant net revenue |
|
$ |
51,319 |
|
$ |
115,400 |
|
$ |
37,020 |
|
$ |
168 |
|
$ |
203,907 |
Owned restaurant cost of sales |
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|
(12,337) |
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|
(22,832) |
|
|
(8,019) |
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(2) |
|
|
(43,190) |
Owned restaurant operating expenses |
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|
(30,726) |
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|
(71,796) |
|
|
(26,807) |
|
|
(164) |
|
|
(129,493) |
Restaurant operating profit |
|
|
8,256 |
|
|
20,772 |
|
|
2,194 |
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|
2 |
|
|
31,224 |
Management, license, franchise and incentive fee revenue |
|
|
2,844 |
|
|
553 |
|
|
— |
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|
75 |
|
|
3,472 |
General and administrative expenses |
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|
|
|
|
|
|
|
|
|
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(10,192) |
Stock based compensation |
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|
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|
|
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|
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(1,470) |
Depreciation and amortization |
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|
|
|
|
|
|
|
|
|
|
|
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(10,870) |
Transition and integration expenses |
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|
|
|
|
|
|
|
|
|
|
|
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(3,949) |
Pre-opening expenses |
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|
|
|
|
|
|
|
|
|
|
|
|
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(1,579) |
Transaction and exit costs |
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|
|
|
|
|
|
|
|
|
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|
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(61) |
Lease termination and exit expenses |
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|
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|
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|
|
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(5,635) |
Other expenses |
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|
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(278) |
Interest expense, net of interest income |
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|
|
|
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|
|
|
|
|
|
|
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(10,295) |
Loss before benefit for income taxes |
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|
|
|
|
|
|
|
|
|
|
|
|
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(9,633) |
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|
|
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|
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|
|
|
|
|
|
Reconciliation of total revenues |
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|
|
|
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|
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Owned restaurant net revenues |
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|
|
|
|
|
|
|
|
|
|
|
|
|
203,907 |
Management, license, franchise, and incentive fee revenue |
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|
|
|
|
|
|
|
|
|
|
|
|
|
3,472 |
Total revenues |
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|
|
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|
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|
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$ |
207,379 |
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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 June 30, 2024 |
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|
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|
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|
|
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Owned restaurant net revenue |
|
$ |
49,690 |
|
$ |
77,885 |
|
$ |
41,303 |
|
$ |
143 |
|
$ |
169,021 |
Owned restaurant cost of sales |
|
|
(11,867) |
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|
(15,254) |
|
|
(8,755) |
|
|
(1) |
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|
(35,877) |
Owned restaurant operating expenses |
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|
(28,708) |
|
|
(46,466) |
|
|
(28,569) |
|
|
(29) |
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|
(103,772) |
Restaurant operating profit |
|
|
9,115 |
|
|
16,165 |
|
|
3,979 |
|
|
113 |
|
|
29,372 |
Management, license, franchise and incentive fee revenue |
|
|
2,960 |
|
|
421 |
|
|
— |
|
|
92 |
|
|
3,473 |
General and administrative expenses |
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|
|
|
|
|
|
|
|
|
|
|
|
|
(9,139) |
Stock based compensation |
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|
|
|
|
|
|
|
|
|
|
|
|
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(1,495) |
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8,025) |
Pre-opening expenses |
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|
|
|
|
|
|
|
|
|
|
|
|
|
(2,516) |
Transition and integration expenses |
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|
|
|
|
|
|
|
|
|
|
|
|
|
(3,794) |
Transaction and exit costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
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(6,519) |
Lease termination and exit expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(307) |
Interest expense, net of interest income |
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|
|
|
|
|
|
|
|
|
|
|
|
|
(7,865) |
Loss on early debt extinguishment |
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|
|
|
|
|
|
|
|
|
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(4,149) |
Loss before benefit for income taxes |
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|
|
|
|
|
|
|
|
|
|
|
|
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(10,964) |
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|
|
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|
|
|
|
|
|
Reconciliation of total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned restaurant net revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
169,021 |
Management, license, franchise and incentive fee revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,473 |
Total revenues |
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|
|
|
|
|
|
|
|
|
|
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$ |
172,494 |
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|
|
|
|
|
|
|
|
|
STK |
|
Benihana |
|
Grill Concepts |
|
Other(1) |
|
Total |
For the six periods ended June 29, 2025 |
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|
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|
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|
|
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Owned restaurant net revenue |
|
$ |
106,185 |
|
$ |
230,741 |
|
$ |
74,106 |
|
$ |
273 |
|
$ |
411,305 |
Owned restaurant cost of sales |
|
|
(25,446) |
|
|
(44,928) |
|
|
(15,931) |
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|
(5) |
|
|
(86,310) |
Owned restaurant operating expenses |
|
|
(62,347) |
|
|
(142,155) |
|
|
(53,556) |
|
|
(210) |
|
|
(258,268) |
Restaurant operating profit |
|
|
18,392 |
|
|
43,658 |
|
|
4,619 |
|
|
58 |
|
|
66,727 |
Management, license, franchise and incentive fee revenue |
|
|
6,037 |
|
|
1,022 |
|
|
— |
|
|
144 |
|
|
7,203 |
General and administrative expenses |
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|
|
|
|
|
|
|
|
|
|
|
|
|
(21,651) |
Stock based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,102) |
Depreciation and amortization |
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|
|
|
|
|
|
|
|
|
|
|
|
|
(20,699) |
Transition and integration expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,668) |
Pre-opening expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,260) |
Transaction and exit costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(130) |
Lease termination and exit expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,706) |
Other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(323) |
Interest expense, net of interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20,117) |
Loss before benefit for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8,726) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned restaurant net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
411,305 |
Management, license, franchise, and incentive fee revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,203 |
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
418,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STK |
|
Benihana |
|
Grill Concepts |
|
Other(1) |
|
Total |
For the six months ended June 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned restaurant net revenue |
|
$ |
101,046 |
|
$ |
77,885 |
|
$ |
71,452 |
|
$ |
146 |
|
$ |
250,529 |
Owned restaurant cost of sales |
|
|
(24,220) |
|
|
(15,254) |
|
|
(15,110) |
|
|
(7) |
|
|
(54,591) |
Owned restaurant operating expenses |
|
|
(56,604) |
|
|
(46,466) |
|
|
(50,302) |
|
|
(38) |
|
|
(153,410) |
Restaurant operating profit |
|
|
20,222 |
|
|
16,165 |
|
|
6,040 |
|
|
101 |
|
|
42,528 |
Management, license, franchise and incentive fee revenue |
|
|
6,356 |
|
|
421 |
|
|
— |
|
|
183 |
|
|
6,960 |
General and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15,315) |
Stock based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,853) |
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13,285) |
Pre-opening expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,430) |
Transition and integration expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,794) |
Transaction and exit costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,878) |
Lease termination and exit expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(471) |
Other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(32) |
Interest expense, net of interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9,943) |
Loss on early debt extinguishment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,149) |
Loss before benefit for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13,662) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned restaurant net revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
250,529 |
Management, license, franchise and incentive fee revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,960 |
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
257,489 |
(1) Other includes sales and expenses that relate to STK Meat Market, an e-commerce platform that offers signature steak cuts nationwide; sales and expenses that relate to the Company’s major off-site events group, which supports all brands and venue concept, and revenue generated from gift card programs.
|