The ONE Group Hospitality, Inc. Quarterly report [Sections 13 or 15(d)]

Leases (Tables)

3 Months Ended

Mar. 30, 2025

The components of lease expense for the three periods ended March 30, 2025 and three months ended March 31, 2024 were as follows (in thousands):


	March 30,			March 31,
	2025			2024
Lease cost
Operating lease cost	$	11,197		$	4,289
Finance lease cost
Amortization of ROU assets		54			55
Interest on lease liabilities		24			19
Total finance lease cost		78			74
Variable lease cost ⁽¹⁾		7,091			3,089
Short-term lease cost		898			316
Total lease cost	$	19,264		$	7,768

Weighted average remaining lease term
Operating leases		13 years			13 years
Finance leases		4 years			4 years
Weighted average discount rate
Operating leases		10.35	%		8.79	%
Finance leases		11.14	%		9.16	%

(1)	Variable lease cost is comprised of percentage rent and common area maintenance.

The components of finance lease assets and liabilities on the condensed consolidated balance sheet were as follows (in thousands):


	March 30,		December 31,
	2025		2024
Finance lease right-of-use assets ⁽¹⁾	$	795	$	849
Current portion of finance lease liabilities ⁽¹⁾		195		189
Long-term portion of finance lease liabilities ⁽¹⁾		705		754

(1)	Finance lease assets and liabilities are included in other assets, other current liabilities, and other long-term liabilities on the condensed consolidated balance sheet.

Supplemental cash flow information related to leases for the period was as follows (in thousands):


	March 30,		March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,769	$	4,171
Operating cash flows from finance leases	$	54	$	55
Financing cash flows from finance leases	$	90	$	68

As of March 30, 2025, maturities of the Company’s operating lease liabilities are as follows (in thousands):


2025, nine periods remaining	$	32,481
2026		43,295
2027		43,903
2028		41,825
2029		44,325
Thereafter		383,430
Total lease payments		589,259
Less: imputed interest		(285,019)
Present value of operating lease liabilities	$	304,240

As of March 30, 2025, maturities of the Company’s finance lease liabilities are as follows (in thousands):


2025, nine periods remaining	$	274
2026		278
2027		278
2028		255
Total lease payments		1,085
Less: imputed interest		(185)
Present value of finance lease liabilities	$	900