The ONE Group Hospitality, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024, primarily driven by the acquisition of Safflower Holdings Corp., which includes the Benihana and RA Sushi brands. Total revenues for the three months ended September 30, 2024, reached $193.975 million, a substantial increase of 152.3% from $76.884 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $451.464 million, up 85.9% from $242.833 million year-over-year.

The owned restaurant net revenue for the third quarter was $190.587 million, compared to $73.700 million in the prior year, reflecting the impact of the acquisition. However, the company reported a net loss of $9.055 million for the quarter, worsening from a loss of $3.253 million in Q3 2023. For the nine-month period, the net loss was $18.577 million, compared to a loss of $507,000 in the same timeframe last year. The net loss attributable to common stockholders for the third quarter was $(16.015) million, compared to $(3.098) million in 2023.

The acquisition of Safflower Holdings Corp. on May 1, 2024, for $365 million, significantly influenced the financial results. The company incurred transaction and integration costs totaling $9.2 million for the nine months ended September 30, 2024. The Benihana acquisition alone generated $209.2 million in revenue but also reported a net loss of $8.1 million since the acquisition date.

Operating expenses surged, with total costs and expenses for Q3 2024 amounting to $196.995 million, compared to $78.839 million in Q3 2023. General and administrative expenses increased to $12.785 million from $7.280 million year-over-year. The company also reported a notable rise in interest expenses, which reached $10 million for the quarter, up from $1.8 million in the same period last year, largely due to new debt incurred for the acquisition.

As of September 30, 2024, total assets ballooned to $953.471 million, up from $317.245 million at the end of 2023, while total liabilities increased to $753.928 million from $249.885 million. The company’s cash and cash equivalents stood at $28.684 million, reflecting a net increase of $7.637 million for the nine months ended September 30, 2024.

The company continues to focus on growth strategies, including the expansion of its restaurant brands and enhancing operational efficiency, despite facing challenges such as a decrease in same-store sales by 8.8% in Q3 2024 compared to the previous year.