| Segment Reporting |
Note 15 – Segment Reporting
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 revenues less operating expenses. As a result of the Benihana Acquisition, the CODM evaluated the Company’s business and determined that there are five operating segments. The Company has reclassified prior year disclosures to conform with the current year presentation.
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, which include Bao Yum and Hideout, as well as management, license and incentive fee revenue generated from the STK brand and ONE Hospitality restaurants which include, Heliot, Rado, Rivershore Bar & Grill and F&B hospitality management agreements, and pre-opening expenses associated with new restaurants under development.
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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 and pre-opening expenses associated with new restaurants under development.
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Grill Concepts. The Grill Concepts segment consists of the results of operations of Kona Grill and RA Sushi restaurant locations and pre-opening expenses associated with new restaurants under development.
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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, the Company’s major off-site events group, which supports all brands and venue concepts, and revenue generated from gift card programs. The Corporate segment’s total assets primarily include cash and cash equivalents, tradenames, goodwill and deferred tax assets.
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Certain financial information relating to the three and nine months ended September 30, 2024 and 2023 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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Corporate |
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Total |
For the three months ended September 30, 2024 |
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Total revenues |
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$ |
47,391 |
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|
104,688 |
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|
41,835 |
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|
61 |
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|
193,975 |
Operating income (loss) |
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$ |
4,395 |
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|
13,906 |
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(2,146) |
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(19,175) |
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(3,020) |
Capital asset additions(1) |
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$ |
23,235 |
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|
3,734 |
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|
7,269 |
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|
374 |
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|
34,612 |
For the nine months ended September 30, 2024 |
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Total revenues |
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$ |
154,793 |
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|
183,132 |
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|
113,286 |
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|
253 |
|
|
451,464 |
Operating income (loss) |
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$ |
20,181 |
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|
28,624 |
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|
(1,729) |
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|
(49,062) |
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|
(1,986) |
Capital asset additions(1) |
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$ |
35,633 |
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|
6,141 |
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|
11,432 |
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|
562 |
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|
53,768 |
As of September 30, 2024 |
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Total assets |
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$ |
161,126 |
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|
242,159 |
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|
137,940 |
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|
412,246 |
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|
953,471 |
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STK |
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Benihana |
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Grill Concepts |
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Corporate |
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Total |
For the three months ended September 30, 2023 |
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Total revenues |
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$ |
44,054 |
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|
— |
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|
32,775 |
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|
55 |
|
|
76,884 |
Operating income (loss) |
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$ |
5,872 |
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|
— |
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|
(444) |
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(7,383) |
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|
(1,955) |
Capital asset additions(1) |
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$ |
8,783 |
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— |
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|
6,012 |
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(280) |
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|
14,515 |
For the nine months ended September 30, 2023 |
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Total revenues |
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$ |
144,608 |
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|
— |
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|
97,961 |
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|
264 |
|
|
242,833 |
Operating income (loss) |
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$ |
26,783 |
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|
— |
|
|
910 |
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|
(23,325) |
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|
4,368 |
Capital asset additions |
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$ |
19,764 |
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— |
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|
17,427 |
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|
1,220 |
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|
38,411 |
As of December 31, 2023 |
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Total assets |
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$ |
159,637 |
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— |
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|
97,840 |
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|
59,768 |
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|
317,245 |
| (1) |
Capital asset additions for the Corporate segment include furniture, fixtures, and equipment for restaurants that the Company plans to open in the future. |
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