One Group Hospitality Inc (STKS) 2023 Q3 法說會逐字稿

Greetings and welcome to The ONE Group third-quarter 2023 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. I would like now to turn the conference over to Tyler Loy. Please go ahead.

歡迎參加 The ONE Group 2023 年第三季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。我現在想把會議交給泰勒·洛伊。請繼續。

Thank you, operator, and hello, everyone. Before we begin our formal remarks, let me remind you that part of our discussion today will include forward looking statements. These forward looking statements are not guarantees of future performance, and you should not place undue reliance on them.

謝謝接線員，大家好。在我們開始正式發言之前，請允許我提醒您，我們今天討論的部分內容將包括前瞻性陳述。這些前瞻性陳述並不是對未來績效的保證，您不應過度依賴它們。

These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Please also note that these forward-looking statements reflect our opinion only as of the date of this call.

這些陳述也受到許多風險和不確定性的影響，可能導致實際結果與我們的預期有重大差異。另請注意，這些前瞻性陳述僅反映我們截至本次電話會議之日的意見。

We undertake no obligation to revise or publicly release any revisions of these forward-looking statements in light of new information or future events. We refer you to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition.

我們沒有義務根據新資訊或未來事件修改或公開發布這些前瞻性陳述的任何修訂。我們建議您參閱我們最近向 SEC 提交的文件，以更詳細地討論可能影響我們未來經營業績和財務狀況的風險。

During today's call, we will discuss certain non-GAAP financial measures, which we believe can be useful in evaluating our performance. However, the presentation of these measures or other information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP.

在今天的電話會議中，我們將討論某些非公認會計準則財務指標，我們認為這些指標有助於評估我們的表現。然而，這些措施或其他資訊的呈現不應被孤立地考慮或作為根據 GAAP 準備的結果的替代品。

For reconciliations of these measures, such as adjusted EBITDA, adjusted net income, restaurant operating profit, comparable sales, and total food and beverage sales at owned and managed and licensed units, the GAAP measures along with the discussion why we consider these measures useful, please see our earnings release issued today. With that, I'd like to turn the call over to Manny Hilario.

對於這些指標的調節，例如調整後的EBITDA、調整後的淨利潤、餐廳營業利潤、可比銷售額以及擁有、管理和許可單位的食品和飲料總銷售額，GAAP 指標以及我們認為這些指標有用的原因的討論，請參閱我們今天發布的收益報告。說到這裡，我想把電話轉給曼尼·希拉里奧。

Thank you, Tyler, and hello, everyone. We sincerely appreciate you joining us today and for your interest in The ONE Group. First, I would like to express my gratitude to our amazing team members for their continued commitment to our mission, which is to be the best restaurants in every market that we operate in by delivering exceptional and unforgettable guest experiences to every guest every time. Their dedication gives me tremendous confidence in our ability to become the global leader in vibe dining.

謝謝你，泰勒，大家好。我們衷心感謝您今天加入我們並感謝您對 The ONE Group 的興趣。首先，我要向我們出色的團隊成員表示感謝，感謝他們繼續致力於我們的使命，即透過每次為每位客人提供卓越和難忘的客人體驗，成為我們經營的每個市場中最好的餐廳。他們的奉獻讓我對我們成為氛圍餐飲的全球領導者的能力充滿信心。

During the third quarter, total revenue grew 5.2% to $76.9 million. And our company-owned revenue grew 6%, which was driven by our new restaurant openings over the past 12 months. We are on track with our long-term growth objectives.

第三季總營收成長 5.2% 至 7,690 萬美元。我們公司自有收入成長了 6%，這得益於過去 12 個月新餐廳開幕的推動。我們正在實現長期成長目標。

In October, we opened a new STK in Charlotte, North Carolina and a new Kona Grill in Phoenix, Arizona, our third Kona Grill in the area. Both restaurants are off to strong starts and they bolster our belief in the long-term EBITDA and earnings power of our development pipeline as we demonstrate industry-leading ROIs for our shareholders.

十月，我們在北卡羅來納州夏洛特開設了一家新的 STK，並在亞利桑那州鳳凰城開設了一家新的 Kona Grill，這是我們在該地區的第三家 Kona Grill。兩家餐廳都取得了良好的開端，當我們為股東展示行業領先的投資回報率時，它們增強了我們對長期 EBITDA 和我們開發管道盈利能力的信心。

We plan to open two new STKs in the fourth quarter of this year and three additional STK towards the beginning of next year, one of which would be a licensed location. We've established incredible flexibility to our pipeline, and we are now in a position to open restaurants in the cadence that meets the needs of the business.

我們計劃在今年第四季開設兩個新的 STK，並在明年初開設另外三個 STK，其中一個將是許可地點。我們已經為我們的管道建立了令人難以置信的靈活性，現在我們能夠按照滿足業務需求的節奏開設餐廳。

Despite the softening sales environment, our same-store sales improved sequentially versus the second quarter. Our consolidated comparable sales decreased 3% in the quarter, consisting of an increase of 1.1% of Kona Grill and a decrease of 5.5% at STK.

儘管銷售環境疲軟，我們的同店銷售額仍較第二季較上季有所改善。本季我們的綜合可比銷售額下降 3%，其中 Kona Grill 成長 1.1%，STK 下降 5.5%。

When compared to 2019, our pre-pandemic base year consolidated comparable sales increased 41.7% reflecting an increase of 61% of STK, consisting of a 40% increase in traffic and a 20% increase in average check and a 23.7% increase at Kona Grill.

與 2019 年相比，我們的大流行前基準年綜合可比銷售額增長了 41.7%，反映出 STK 增長了 61%，其中包括客流量增長 40%、平均支票增長 20%，以及 Kona Grill 增長 23.7% 。

Clearly, even against a more challenging backdrop in the near term, we've retained our market share increases at both brands. As we look to the fourth quarter, our event bookings are building, and we have an incredible slate of sensational holiday and seasonal menu offerings plan.

顯然，即使在短期內更具挑戰性的背景下，我們兩個品牌的市佔率仍然保持成長。展望第四季度，我們的活動預訂量正在增加，我們有一系列令人難以置信的精彩假期和季節性菜單供應計劃。

Our guests love to celebrate their holidays and special occasions with us and our venues really come to life during the holiday season. We're excited about our lineup at both STK and Kona Grill for Thanksgiving, Christmas, and New Year's Eve.

我們的客人喜歡與我們一起慶祝他們的假期和特殊場合，我們的場地在假期期間真正變得生機勃勃。我們對 STK 和 Kona Grill 感恩節、聖誕節和除夕夜的陣容感到非常興奮。

Along with holiday programming, we're laser focused on promoting our everyday value offerings at both STK and Kona Grill. We believe that our $3, $6, and $9 happy hour program is one of the most compelling in the industry as we offer similar culinary offerings as our main menu, but at attractive entry price points. We're seeing the velocity of the state part accelerate, and it's a key initiative for the company in this challenging sales environment.

除了假期節目外，我們還專注於在 STK 和 Kona Grill 推廣我們的日常價值產品。我們相信，我們的 3 美元、6 美元和 9 美元歡樂時光計劃是業內最引人注目的計劃之一，因為我們提供與主菜單類似的美食，但入門價格相當有吸引力。我們看到州政府的速度正在加快，這是公司在這個充滿挑戰的銷售環境中的關鍵舉措。

Another exciting value layer is our night out menu, which features wine or bubbles and appetizer and on entrée, such as a 14 ounce New York Strip, sides, and desserts for only $69 per person at STK. We feature a similar offering for $39 per person at Kona Grill. We believe this to be one of the best values in the industry and are promoting it along with our happy hour throughout our digital marketing efforts.

另一個令人興奮的價值層是我們的夜間菜單，其中包括葡萄酒或氣泡酒和開胃菜以及主菜，例如 14 盎司的 New York Strip、配菜和甜點，STK 每人只需 69 美元。我們在 Kona Grill 也提供類似的服務，價格為每人 39 美元。我們相信這是該行業中最好的價值之一，並在整個數位行銷工作中與我們的歡樂時光一起推廣它。

Turning now to restaurant level margins. Restaurant operating profit was 12.3% in the quarter compared to 13.1% in the prior year. In dollars, operating profit was flat year over year. During the quarter, we faced margin pressure due to our continued investments in labor for new restaurant openings.

現在轉向餐廳層面的利潤。本季餐廳營業利潤為 12.3%，而上年同期為 13.1%。以美元計算，營業利潤較去年同期持平。本季度，由於我們持續投資開設新餐廳的勞動力，我們面臨利潤率壓力。

Because we have some of the highest average unit volumes in the restaurant industry, we prefer to open them with management and staff who have experience working at volume in our existing restaurants. We anticipate this impact to lessen during the fourth quarter with the new store openings upcoming.

由於我們的平均單位銷售在餐飲業中名列前茅，因此我們更願意由在現有餐廳中擁有豐富工作經驗的管理層和員工來開設這些餐廳。我們預計隨著新店開業，這種影響將在第四季度減輕。

Additionally, we continue to invest in our digital marketing channel to drive broad customer awareness and promote our just-in-time marketing efforts. For example, during some of the nice fall days in New York City, we were able to drive traffic to our beautiful new patio at STK Midtown and our wonderful rooftop at STK Downtown.

此外，我們繼續投資於我們的數位行銷管道，以提高廣泛的客戶意識並促進我們的及時行銷工作。例如，在紐約市的一些美好的秋季日子裡，我們能夠將流量吸引到 STK Midtown 美麗的新露台和 STK Downtown 美妙的屋頂。

While this investment may have a short-term impact on margins, it's allowed us to retain the robust market share we've gained over the last several years. Going forward, we're committed to our sales growth and margin driving initiatives.

雖然這項投資可能會對利潤率產生短期影響，但它使我們能夠保留過去幾年獲得的強勁市場份額。展望未來，我們致力於銷售成長和利潤驅動計劃。

Number one, continue to delight our guests at both STK and Kona Grill with exceptional and unforgettable experiences. This is our mission and focus and what allows us to differentiate ourselves from the competition. Our fantastic operating team creates the farm and vibe dining experiences that are truly memorable. And our customer satisfaction metrics continue to be the highest we've seen at the company.

第一，繼續為 STK 和 Kona Grill 的客人提供卓越而難忘的體驗。這是我們的使命和重點，也是我們在競爭中脫穎而出的原因。我們出色的營運團隊創造了真正令人難忘的農場和氛圍用餐體驗。我們的客戶滿意度指標仍然是我們公司所見過的最高水準。

Number two, keep investing in digital marketing, focus in our everyday value offerings, such as brunch, power lunch, happy hour, night out, and late night happy hour. We're very focused on driving attention and awareness to our value layers as we believe there are some of the best in the industry, especially to those who may be the more wallet caution.

第二，繼續投資數位行銷，專注於我們的日常價值產品，例如早午餐、能量午餐、歡樂時光、夜晚外出和深夜歡樂時光。我們非常注重提高人們對我們價值層的關注和認識，因為我們相信有一些業內最好的公司，特別是對於那些可能更加謹慎的人。

Number three, optimize our pricing relative to our peers and inflationary headwinds. We've been conservative in that pricing and plan to take a bit more pricing heading into the holiday season, about 3% to 4% of each brand to offset the persistent inflation that we've seen across the industry. The high customer satisfaction scores discussed earlier, give us confidence in our pricing strategy.

第三，相對於同業和通膨逆風優化我們的定價。我們在定價方面一直持保守態度，並計劃在假期季節之前採取更高的定價，每個品牌的定價約為 3% 至 4%，以抵消我們在整個行業中看到的持續通膨。前面討論的高客戶滿意度讓我們對我們的定價策略充滿信心。

Number four, open new restaurants at a consistent pace for the foreseeable future. Number five, improve restaurant operating profit and overall profitability without impacting the guest experience through mainly focusing on purchasing efficiencies for both food and operating supplies, maximizing productivity through smart scheduling and evaluating third-party vendor relationships and reducing travel costs. Make no mistake, we understand fully we need to improve restaurant level margins and we plan to do so.

第四，在可預見的未來以一致的速度開設新餐廳。第五，透過主要關注食品和經營用品的採購效率，透過智慧調度和評估第三方供應商關係最大限度地提高生產力，並降低差旅成本，在不影響客人體驗的情況下提高餐廳營業利潤和整體盈利能力。毫無疑問，我們完全理解我們需要提高餐廳的利潤率，並且我們計劃這樣做。

Moving on to developments. During the second half of the year, we continued to execute on our robust unit growth. In July, we opened a Kona Grill in Riverton, Utah. And as previously discussed, in October, we opened an STK in Charlotte, North Carolina and a Kona Grill in Phoenix, Arizona in the Desert Ridge marketplace.

繼續發展。下半年，我們繼續保持強勁的單位成長。七月，我們在猶他州里弗頓開設了一家科納燒烤店。正如之前所討論的，10 月份，我們在北卡羅來納州夏洛特開設了一家 STK，並在亞利桑那州鳳凰城的 Desert Ridge 市場開設了一家 Kona Grill。

For the full year, we expect to add eight new units, of which six are already opened. For the remainder of the year, we are on track to open two new company-owned STKs in the following cities, Boston, Massachusetts, on Berkeley Street in the Back Bay and Salt Lake City, Utah in the West quarter across the street from the Delta Center.

我們預計全年將增加八個新單位，其中六個已開業。在今年剩下的時間裡，我們預計在以下城市開設兩家新的公司擁有的 STK：馬薩諸塞州波士頓後灣的伯克利街和猶他州鹽湖城西區街對面的 STK。達美中心。

Early in 2024, we plan to open a company-owned STK in Washington DC at the Marriott Grand Marquis, a company-owned STK in Aventura, Florida at the Aventura Mall and a licensed STK. Over the long term, we view our addressable market as 200 STK restaurants globally and 200 Kona Grills domestically with best-in-class ROIs of between 40% and 50%. There is clearly a long runway of opportunity ahead of us that we're just beginning to act on. Now I'll turn the call over to Tyler.

2024 年初，我們計劃在華盛頓特區的萬豪大侯爵酒店開設一家公司自有的 STK，在佛羅裡達州阿文圖拉的 Aventura 購物中心開設一家公司自有的 STK，以及一家獲得許可的 STK。從長遠來看，我們認為我們的目標市場是全球 200 家 STK 餐廳和國內 200 家 Kona Grills，投資回報率在 40% 到 50% 之間，是同類最佳的。顯然，我們面前還有很長的機遇，我們才剛開始採取行動。現在我將把電話轉給泰勒。

Thank you, Manny. Let me start by discussing our third-quarter financials in greater detail. Total GAAP revenues were $76.9 million, increasing 5.3% from $73 million for the same quarter last year. Included in our total revenue is our owned restaurant net revenues of $73.7 million, which increased 6% from $69.5 million for the same quarter last year.

謝謝你，曼尼。讓我先更詳細地討論我們第三季的財務狀況。 GAAP 總營收為 7,690 萬美元，比去年同期的 7,300 萬美元成長 5.3%。我們的總收入包括我們自有餐廳的淨收入 7,370 萬美元，比去年同期的 6,950 萬美元增長了 6%。

The increase in revenue is primarily attributable to the opening of four owned venue since August 2022. This was partially offset by a 3% decrease in comparable sales. Consolidated comparable sales were 41.7% compared to 2019, our pre-pandemic base year.

收入的增長主要歸因於自 2022 年 8 月以來四個自有場館的開業。這被可比銷售額下降 3% 部分抵消。與我們的大流行前基準年 2019 年相比，合併可比銷售額為 41.7%。

Management license and incentive fee revenues were $3.2 million, decreasing 8.6% from $3.5 million in the third quarter of 2022. The decrease was primarily driven by lower revenues at a managed property in London, England.

管理許可和獎勵費收入為 320 萬美元，比 2022 年第三季的 350 萬美元下降 8.6%。這一下降主要是由於英國倫敦管理物業的收入下降。

Owned restaurant cost of sales as a percentage of owned restaurant net revenue improved 20 basis points to 24.7% in the third quarter of 2023 compared to 24.9% in the prior year, primarily due to menu mix, management, pricing, and operational cost reduction initiatives, partially offset by increased commodity prices.

2023 年第三季度，自有餐廳銷售成本佔自有餐廳淨收入的百分比提高了20 個基點，達到24.7%，而上一年為24.9%，這主要是由於菜單組合、管理、定價和營運成本削減舉措，部分被大宗商品價格上漲所抵銷。

Owned restaurant operating expenses as a percentage of owned restaurant net revenue increased 90 basis points to 62.9% in the third quarter of 2023 from 62% in the third quarter of 2022, primarily due to higher labor costs driven by wage inflation and investments in anticipation of growth, increased marketing expenses, and general operating cost inflation.

自有餐廳營運費用佔自有餐廳淨收入的百分比從2022 年第三季的62% 增加了90 個基點，增至2023 年第三季的62.9%，這主要是由於薪資上漲和預期投資導致勞動力成本上升。成長、行銷費用增加以及整體營運成本上漲。

Restaurant operating profit was 12.3% for the third quarter of 2023 compared to 13.1% in the third quarter of 2022. We're making significant investments in growth, which impact the margin. But as Manny discussed earlier, we have significant cost reduction initiatives in place.

2023 年第三季餐廳營業利潤為 12.3%，而 2022 年第三季為 13.1%。我們正在大力投資成長，這會影響利潤率。但正如曼尼之前討論的那樣，我們已經制定了重大的成本削減計劃。

On a total reported basis, general and administrative expenses were $7.3 million compared to $6.4 million in the prior year. The increase was attributable to increased stock-based compensation expense and additional investments required ahead of new restaurant openings.

以報告總額計算，一般及行政費用為 730 萬美元，而前一年為 640 萬美元。這一增長歸因於股票補償費用的增加以及新餐廳開業之前所需的額外投資。

Compared to the previous quarter, general and administrative expenses and adjusted general and administrative expenses improved $0.7 million and $0.8 million, respectively, reflecting the impact of many of the initiatives we already have in place.

與上一季相比，一般和管理費用以及調整後的一般和管理費用分別增加了 70 萬美元和 80 萬美元，反映了我們已經採取的許多舉措的影響。

When adjusting for stock-based compensation, adjusted general and administrative expenses were $6 million in the third quarter of 2023 and $5.4 million in the same quarter last year. Pre-opening expenses were $3.1 million compared to $2.7 million in the prior year.

調整股票薪酬後，2023 年第三季調整後的一般及管理費用為 600 萬美元，去年同期為 540 萬美元。開業前費用為 310 萬美元，前一年為 270 萬美元。

The increase was related to payroll, training, and non-cash pre-open rent for Kona Grill, Riverton, which opened in July 2023, for STK, Charlotte, and Kona Grill, Phoenix, which both opened in October 2023, and for STK and Kona Grill restaurants currently under development.

這一增長與 2023 年 7 月開業的 Riverton Kona Grill、2023 年 10 月開業的 STK、Charlotte 和 Phoenix Kona Grill、以及 STK 的工資、培訓和非現金預營業租金有關。和Kona Grill 餐廳目前正在開發中。

Interest expense was $1.7 million in the third quarter of 2023 compared to $0.4 million in the third quarter of 2022. The increase was driven by increases in our outstanding balance and benchmark rates year over year. Income tax benefit was $0.4 million in the third quarter of 2023 compared to $0.3 million in the third quarter of 2022.

2023 年第三季的利息支出為 170 萬美元，而 2022 年第三季的利息支出為 40 萬美元。這一增長是由我們的未償餘額和基準利率同比增長推動的。 2023 年第三季的所得稅優惠為 40 萬美元，而 2022 年第三季的所得稅優惠為 30 萬美元。

Net loss attributable to The ONE Group Hospitality, Inc. was $3.1 million or $0.10 net loss per share compared to a net income of $0.5 million in the third quarter of 2022 or $0.01 net income per share. Adjusted net loss was $2.4 million or $0.08 of adjusted net loss per share compared to an adjusted net income of $2.4 million in the third quarter of 2022 or $0.07 net income per share.

The ONE Group Hospitality, Inc. 的淨虧損為 310 萬美元，即每股淨虧損 0.10 美元，而 2022 年第三季的淨收入為 50 萬美元，即每股淨收入 0.01 美元。調整後淨虧損為 240 萬美元，即調整後每股淨虧損 0.08 美元，而 2022 年第三季調整後淨利為 240 萬美元，即每股淨利潤 0.07 美元。

Adjusted EBITDA for the third quarter attributable to The ONE Group Hospitality, Inc. was $6.2 million compared to $7.1 million in the third quarter of 2022. We've included a reconciliation of adjusted EBITDA and adjusted net income in the tables in our third-quarter 2023 earnings release.

The ONE Group Hospitality, Inc. 第三季調整後 EBITDA 為 620 萬美元，而 2022 年第三季為 710 萬美元。我們在第三季的表格中納入了調整後 EBITDA 和調整後淨利的調節表2023 年收益發布。

During the third quarter, we repurchased approximately 0.5 million shares of our common stock. In total, we've purchased 2.2 million shares or approximately 7% of our outstanding shares under our buyback program. The repurchase program was completed in October 2023.

第三季度，我們回購了約 50 萬股普通股。根據回購計劃，我們總共購買了 220 萬股股票，約佔已發行股票的 7%。回購計劃於2023年10月完成。

Turning to liquidity, we finished the quarter with $22.1 million in cash, net $10.4 million available under our revolving credit facility, subject to certain conditions. During the third quarter we paid large amounts for restaurants will be opening later this year and the first part of 2024.

談到流動性，本季結束時，我們的現金為 2,210 萬美元，在符合某些條件的情況下，我們的循環信貸安排下可用淨額為 1,040 萬美元。第三季度，我們為將於今年稍後和 2024 年上半年開業的餐廳支付了大量費用。

Our fourth quarter is our highest revenue and adjusted EBITDA quarter and typically a quarter where we generate significant cash, which we plan to build. We believe that we have the liquidity necessary to fund our future development plans.

我們的第四季是我們營收和調整後 EBITDA 最高的季度，通常是我們計劃創造大量現金的季度。我們相信我們擁有為未來發展計劃提供資金所需的流動性。

Now I'd like to provide some forward-looking commentary regarding our business. This commentary is subject to risks and uncertainties associated with forward-looking statements. As discussed in our SEC filings, we've always remind our investors the actual numbers and timing of new restaurant openings for any given period is subject to a number of factors outside the company's control, including macroeconomic conditions, weather, and factors under control of landlords, contractors, licensees, and regulatory and licensing authorities.

現在我想對我們的業務提供一些前瞻性的評論。本評論受到與前瞻性陳述相關的風險和不確定性的影響。正如我們在美國證券交易委員會文件中所討論的那樣，我們始終提醒投資者，在任何特定時期內新餐廳開業的實際數量和時間都受到公司無法控制的許多因素的影響，包括宏觀經濟狀況、天氣以及受公司控制的因素。業主、承包商、被許可人以及監管和許可機構。

Based on the information available now and the expectations as of today, we are updating the following financial targets for 2023. Beginning with revenues, we project our total GAAP revenues of between $335 million and $345 million. Managed license and incentive fee revenues are expected to be between $14.5 million and $15 million.

根據現有資訊和截至目前的預期，我們正在更新以下 2023 年財務目標。從收入開始，我們預計 GAAP 總收入在 3.35 億美元至 3.45 億美元之間。管理許可和獎勵費收入預計在 1,450 萬美元至 1,500 萬美元之間。

Full owned operating expenses as a percentage of owned restaurant net revenue of 84% to 83%, total G&A, excluding stock-based compensation of approximately $26 million to $27 million, adjusted EBITDA of $40 million to $45 million, restaurant pre-opening expenses of approximately $8 million, an effective income tax rate of between 5% and 10%.

全資營運費用佔自有餐廳淨收入的84% 至83%，總管理費用（不包括基於股票的薪酬）約為2,600 萬至2,700 萬美元，調整後EBITDA 為4,000 萬至4,500 萬美元，餐廳開業前費用約800萬美元，有效所得稅率為5%至10%。

Total capital expenditures, net of allowances received from landlords of approximately 2.5% of company owned revenue and approximately $4 million for new company-owned venue. And finally, we plan to add eight new venues in 2023. I will now turn the call back to Manny.

資本支出總額，扣除從業主處獲得的約占公司自有收入 2.5% 的補貼以及用於公司自有新場地的約 400 萬美元。最後，我們計劃在 2023 年增加 8 個新場館。我現在將電話轉回給 Manny。

Thank you, Tyler, and thank you all for your time today. Let me conclude by saying we are in the early stages of our long-term growth strategy as we continue to build a portfolio of high volume brands with compelling returns for our shareholders.

謝謝你，泰勒，也謝謝大家今天抽出寶貴的時間。最後我要說的是，我們正處於長期成長策略的早期階段，我們將繼續打造高銷售品牌組合，為股東帶來可觀的回報。

Thank you all for your interest in The ONE Group because I always say none of this would be possible without the fantastic support of our teammates who bring our mission of great execution to life every day. We have some exciting times ahead, and we'll be opening a lot of restaurants in the near future. And I look forward to seeing all out there. We appreciate everyone's joining us on the call today. Tyler and I are happy to answer any questions you may have. Operator?

感謝大家對 The ONE Group 的關注，因為我總是說，如果沒有我們的隊友的大力支持，這一切都不可能實現，他們每天都將我們卓越執行的使命付諸實踐。我們將迎來一些激動人心的時刻，並且我們將在不久的將來開設許多餐廳。我期待看到那裡的一切。我們感謝大家今天加入我們的電話會議。泰勒和我很樂意回答您的任何問題。操作員？

(Operator Instructions) Joshua Long, Stephens.

（操作員說明）Joshua Long，Stephens。

Great. Thank you for taking my question. Manny, was curious if you could level set and what you saw through the quarter, how that managed, how that resulted versus your expectations. And maybe touch on just the overall strength of your core consumer.

偉大的。感謝您回答我的問題。曼尼，很好奇你是否可以設定水平，以及你在本季度看到的情況，如何管理，結果如何與你的預期相比。也許只涉及核心消費者的整體實力。

Look at the end of the day volumes still very strong. But then there's been a lot of discussion on the industry in terms of just where the consumer is at, their level, or appetite for engaging in the restaurant industry. But it feels like you're continuing to see some strength in your concept. So just curious if you could provide some perspective from how you see the consumer in the current environment.

看看收盤時成交量仍然非常強勁。但隨後就消費者所處的位置、水平或參與餐飲業的興趣等方面對該行業進行了許多討論。但感覺你繼續在你的概念中看到一些力量。因此，我很好奇您是否可以提供一些您如何看待當前環境中消費者的觀點。

Thanks, Josh. I'll answer it this way. I'll break out Kona Grill in the quarter. We were plus one-one in same-store sales. We were actually up on checks in the quarter. So we were very encouraged by that. So there was a strong performance from a traffic perspective. And of course, for Kona Grill and we also had pricing in there in the neighborhood of seven points.

謝謝，喬許。我就這樣回答吧。我將在本季推出科納燒烤店。我們的同店銷售額是一對一。事實上，我們本季的支票數量有所增加。所以我們對此感到非常鼓舞。因此，從流量角度來看，表現強勁。當然，對於 Kona Grill，我們也有大約 7 個點的定價。

We did see, though, in the concept trading down. So we clearly from a PMIX perspective, we're seeing the customer trade down the items that they're buying when they come to the restaurants. And then STK, we were down about 5.8 on checks. We had pricing of about [$6, $5] or so for the quarter. So we also did see a trade down with the STK consumer.

不過，我們確實看到了概念交易的下跌。因此，從 PMIX 的角度來看，我們清楚地看到客戶在來到餐廳時會降低他們購買的商品的價格。然後是 STK，我們的支票下降了約 5.8。本季我們的定價約為 [$6, $5] 左右。因此，我們也確實看到了 STK 消費者的交易下降。

So I would say the broad trend was relatively solid performance on traffic for both brands. But clearly, the phenomena now happening with the consumer, the places we've seen it in our restaurant has been trading down on the items purchased in the restaurant in terms of day of the week trend. I think I've reported over time that we still see strong performance on Fridays and Saturdays in the restaurants.

所以我想說，大趨勢是兩個品牌的流量表現相對穩定。但顯然，現在消費者身上發生的現象，我們在餐廳看到的地方，已經根據一周中的某一天的趨勢，在餐廳購買的物品進行了降價。我想我已經報告過，隨著時間的推移，我們仍然看到餐廳在周五和周六的強勁表現。

And still the more challenged days in terms of customers is Monday through Wednesday. So those are kind of like the relative trends that we see in the consumer and going into the fourth quarter, our emphasis is value.

就客戶而言，最具挑戰性的日子仍然是周一到週三。這些有點像我們在消費者中看到的相對趨勢，進入第四季度，我們的重點是價值。

So you'll notice from my prepared statements there that I believe value plays a big role in the current environment. So our focus will be on our happy hour, [$3, $6, $9], and then as night out at the $69 price point and $39 price point for Kona Grill. So we're being proactive. We've been proactive with value layers now for over a year. So we're expecting to leverage that in the fourth quarter.

因此，您會從我準備好的陳述中註意到，我相信價值在當前環境中發揮著重要作用。因此，我們的重點將是我們的歡樂時光，[3 美元、6 美元、9 美元]，然後是價格為 69 美元和 39 美元的 Kona Grill 的夜晚。所以我們正在積極主動。一年多來，我們一直積極主動地開發價值層。因此，我們預計將在第四季度利用這一點。

Great. That's helpful. And then when we think about just the strong value offering that you've had in place and then contextualize that with some of the trade down you've seen, where are you seeing the trade down? Is it broad-based? Are you -- you also talked about the value layers and the importance there that seems like a steady part of the messaging. Just curious how you work with your digital marketing or messaging to help elevate and draw awareness of that going forward.

偉大的。這很有幫助。然後，當我們考慮您已經提供的強大價值產品，然後將其與您所看到的一些交易下跌聯繫起來時，您在哪裡看到交易下跌？其基礎廣泛嗎？您是否也談到了價值層及其重要性，這似乎是訊息傳遞的穩定部分。只是好奇您如何利用數位行銷或訊息來幫助提高和吸引人們對未來的認識。

Yeah. I mean, I think if you look at our digital strategy for, frankly, for the last two years, it's been focused on and the experience. It's been focused on premium products. We've highlighted a lot of the premium experiences in the restaurants.

是的。我的意思是，坦白說，如果你看看我們過去兩年的數位策略，你會發現它一直專注於體驗。它一直專注於優質產品。我們重點介紹了餐廳的許多優質體驗。

If you look at our digital and more of our messaging today, we are hitting the messaging more directly with price point, for instance, we've marketed happy hour in all in the last 18 months, but we generally promoted just happy hour. Whereas if you look at our current collateral materials, we're a lot more clear that it's $3 $6, $9.

如果你看看我們今天的數字和更多訊息，我們會更直接地透過價格點來傳達訊息，例如，我們在過去 18 個月裡總共行銷了歡樂時光，但我們通常只促銷歡樂時光。然而，如果你看看我們目前的抵押材料，我們會更清楚地知道它是 3 美元、6 美元、9 美元。

So we believe that price point has become critical, with the only caveat on that is that the price point is important, but the experience still trumps anything. So we do make sure that we provide great products that is what we do in the rest of the menu at those price points. So it's not just providing the price point, but it's really providing the great products and the great experiences at those other price points.

因此，我們認為價格點已經變得至關重要，唯一需要注意的是價格點很重要，但體驗仍然勝過一切。因此，我們確實確保提供優質的產品，這就是我們在這些價位的菜單中的其餘部分所做的。因此，它不僅提供價格點，而且確實在其他價格點提供出色的產品和出色的體驗。

Great. Then last one for me, can you talk about the new unit and the environment for opening new units, you've gotten a couple of open here, you have several open here year to date, you've got a couple more in the pipeline for this year, and then thinking out into next year as well, permitting delays, how have those been trending? And what's the overall environment look like from a new unit development perspective for your brands?

偉大的。然後是我的最後一個，你能談談新單位和開設新單位的環境嗎？你已經在這裡開放了幾個單位，今年迄今為止，你在這裡開放了幾個單位，還有更多單位正在籌備中今年，然後考慮明年，允許延遲，這些趨勢如何？從您品牌的新部門開發的角度來看，整體環境是什麼樣子？

Yeah. I mean, I think just in general, the construction environment, as many people have reported, is more complex. I think our strategy has been to put as many projects in process, priming the pump for the number of projects. I think we've been doing that now for the last 12, 14 months, really lining up the amount of projects in the pipeline.

是的。我的意思是，我認為總的來說，正如許多人所報告的那樣，施工環境更加複雜。我認為我們的策略是投入盡可能多的項目，為項目數量啟動。我認為過去 12、14 個月以來我們一直在這樣做，確實在排隊準備中的項目數量。

And I think now we're at the point where we have plenty of alternatives within the pipeline that it's more about us picking and choosing which projects we want to bring on. And it's really about prioritizing which one we want to bring on.

我認為現在我們正處於這樣一個階段，我們在管道中有很多替代方案，更多的是我們挑選和選擇我們想要開展的項目。這實際上是關於我們想要優先考慮哪一個。

So for instance, as you probably see from the pipeline, we have a very exciting group of STKs that we wanted to open up in the near future. So you'll see that the pipeline right now the next four, five is STKs. And by the way, that's not because we're not delighted with Kona Grill.

例如，正如您可能從管道中看到的那樣，我們有一組非常令人興奮的 STK，我們希望在不久的將來開放它們。所以你會看到現在的管道接下來的四、五個是 STK。順便說一句，這並不是因為我們對 Kona Grill 不滿意。

As a matter of fact, our Desert Ridge Kona Grill, which we just very recently opened, has already jumped up to the top in revenue in the chain or in the group. So we're super excited about that. And I think that really speaks to the quality of the real estate that we've gotten to the pipeline in the last couple of years.

事實上，我們最近剛開業的 Desert Ridge Kona Grill 的收入已經躍居連鎖店或集團的榜首。所以我們對此感到非常興奮。我認為這確實說明了我們在過去幾年中開發的房地產的品質。

So we're still super excited about the quality of the of the pipeline, but one of the things you'll hear us talk a lot more about is just flexibility and the opportunity to pace the openings at the pace that feels comfortable and right for us because obviously you always have to balance the financial resources and the human resources when you're going through your growth. So that's really just us keeping pace and making sure that we're balancing those two factors.

因此，我們仍然對管道的品質感到非常興奮，但是您會聽到我們更多談論的一件事就是靈活性以及以感覺舒適且適合的速度調整空缺的機會因為顯然，當你經歷成長時，你總是必須平衡財務資源和人力資源。因此，我們實際上只是跟上步伐並確保平衡這兩個因素。

In terms of the overall environment, permitting is still challenging. So it's there's nothing really lightening up on that side of the developments and construction is expensive. Labor is primary input into the restaurants that we built. So in the last 24 months, we certainly have seen the costs of labor within the construction bills going up. So it's certainly something that we keep monitoring very well.

從整體環境來看，許可仍然具有挑戰性。因此，開發案的這一面並沒有什麼真正令人振奮的事情，而且建造成本很高。勞力是我們建造餐廳的主要投入。因此，在過去 24 個月中，我們確實看到建築費用中的勞動成本不斷上漲。所以這肯定是我們一直在密切監控的事情。

And obviously, the way to get through a labor in construction projects is to shorten the construction cycle so that you get in, get out of one building the site. So you don't stretch out the labor within the construction cycle. So those are like the two big items within that development cycle that we're managing very closely, permitting as well as managing linked to project, so that we get the best in labor.

顯然，在建築專案中完成勞動的方法是縮短施工週期，這樣你就可以進出建築工地。因此，您不會在施工週期內浪費勞動力。因此，這些就像我們正在密切管理的開發週期中的兩個大項目，允許以及管理與專案相關的項目，以便我們獲得最好的勞動力。

Thank you.

謝謝。

Thanks, Josh.

謝謝，喬許。

Nick Setyan, Wedbush Securities.

Nick Setyan，韋德布希證券公司。

Hey, thank you. Yeah, your unit margin guidance implies around 20% in Q4 just given the deleverage you've seen year to date, how much confidence do you have in that sort of high, very high 19s, low 20% type of margin in Q4?

嘿，謝謝你。是的，考慮到今年迄今為止所看到的去槓桿化，你們的單位利潤率指導意味著第四季度約為20%，您對第四季度那種高、非常高、低20% 的利潤率有多大信心？

So Nick, great question. So the items that I would call the positives leading into the quarter into the margin one is we did take pricing, how the pricing just actually this week. So I think the higher pricing by definition should help with the margins. And we typically put our holiday menus in place.

尼克，好問題。因此，我稱之為本季利潤率的積極因素是我們確實進行了定價，本週的定價實際上是如何的。因此，我認為更高的定價應該有助於提高利潤。我們通常會準備好節日菜單。

In the third week of November we decided to do a little earlier this year. So I think that helps with the margins. I think the next thing that helps with the margin is that we've taken a significant amount of people from existing restaurants, and we're moving them now to the new restaurants. So that takes pressure off having possibly duplicate positions within the restaurant. So that helps with the labor side in the restaurants.

在十一月的第三週，我們決定今年提前一點。所以我認為這有助於提高利潤。我認為下一個有助於提高利潤率的事情是，我們從現有餐廳中吸收了大量人員，現在我們正在將他們轉移到新餐廳。這樣就減輕了餐廳內可能有重複職位的壓力。這對餐館的勞動力方面有所幫助。

I think Tyler mentioned that we've done a significant amount of initiatives and supply chain items like paper and stuff like that. We brought down a little bit to spec on the paper that we use and really took advantage of maybe more of our size in paper purchasing. So we're doing a lot of things within the ops, costs that probably will be very helpful.

我認為泰勒提到我們已經採取了大量舉措和供應鏈項目，例如紙張之類的東西。我們對所用紙張的規格進行了一些降低，並真正利用了我們在紙張採購方面的更多優勢。因此，我們在營運中做了很多事情，這可能會非常有幫助。

And just generally, being very careful with scheduling labor in the slower weeks within the quarter, although it's a really good quarter for us. There's still a couple of weeks in there that are low volume week, so just making sure that the teams manage the schedules very well there.

一般來說，儘管這對我們來說是一個非常好的季度，但在本季度內較慢的幾週內安排勞動力時要非常小心。還有幾週的工作量較低，因此只需確保團隊很好地管理日程即可。

Again, I think we also mentioned this there's still headwinds in some of the commodities. Beef is still something that we need to manage through and make sure that we offset that. But overall, that is good. And then we're launching our premium lines like we do every year in the holidays, we're having some very cool items in our Wagyu promotion this year, so that should help drive both percentage and dollar margin during the holiday season.

我想我們也提到過，某些商品仍然面臨阻力。牛肉仍然是我們需要管理的東西，並確保我們能夠抵消它。但總體而言，這很好。然後我們像每年假期一樣推出我們的優質產品線，今年我們在和牛促銷中推出了一些非常酷的產品，因此這應該有助於提高假期期間的百分比和美元利潤率。

So those are the things that I guess I gave you both pluses and maybe a headwind in there in terms of what how we look at the margin in the fourth quarter.

因此，我想這些都是我帶給你的好處，也可能是我們如何看待第四季利潤率的不利因素。

Okay. Thank you. And then just my last question, you guys mentioned that the comps improved as the quarter progressed. Would you mind telling us the month-to-month comp and then how you're doing in October in terms of same-store sales?

好的。謝謝。然後我的最後一個問題，你們提到隨著本季的進展，業績有所改善。您介意告訴我們每個月的比較情況以及您 10 月份的同店銷售嗎？

I mean, I think in general, I would say the month-to-month differences to us, to be honest with you, weren't that significant in our business model. So I wouldn't say that they were that significant from that perspective. And as you know -- Tyler, you want to add anything on that?

我的意思是，我認為總的來說，我會說，老實說，對我們來說，每個月的差異在我們的商業模式中並不是那麼重要。所以從這個角度來看，我不會說它們那麼重要。如你所知，泰勒，你想對此補充什麼嗎？

No. I mean, they were relatively consistent, but we did see some sequential improvements for the quarter. And then in terms of October, I think our guidance really lays out how we're feeling about the fourth quarter relative to October and then the rest of the quarter as well.

不，我的意思是，它們相對一致，但我們確實看到了本季度的一些連續改進。然後就 10 月而言，我認為我們的指導確實闡述了我們對第四季度相對於 10 月以及本季剩餘時間的感受。

Okay. Thank you very much.

好的。非常感謝。

Thanks, Nick.

謝謝，尼克。

Mark Smith, Lake Street Capital.

馬克史密斯，湖街資本。

Hi, guys. First question for me, just trying to balance, Manny, you talked about some focus on value here in Q4 that with taking some price increases on the menu. I don't know if you can quantify price increases, maybe where you're planning on taking that and how do you still send a value message with some of the price increases?

嗨，大家好。我的第一個問題，只是試圖平衡，曼尼，你談到了第四季度對價值的關注，並在菜單上進行了一些漲價。我不知道你是否可以量化價格上漲，也許你計劃在哪裡採取這種做法，以及如何透過一些價格上漲來傳遞價值訊息？

So fantastic question, Mark, and probably one that helps us, I guess really the focus in defining the strategy is that with happy hour and the other price points that we have like $39 at Kona Grill, $69 at STK is we really use that level or those price points to really make the brand approachable to a much wider group of demographics.

這是一個很棒的問題，馬克，也許是一個對我們有幫助的問題，我想定義策略的真正重點是歡樂時光和其他價格點，比如Kona Grill 的39 美元，STK 的69 美元，我們真的使用這個水平或那些真正使該品牌能夠吸引更廣泛的人群的價格點。

And so it's really an access to the brand opportunity for us. So we believe that there's that level of consumer that is sensitive and we want to make sure that we give them an opportunity to still experience the brand. But then the pricing strategy is on the menu in terms of taking prices up is really targeted at the higher end of our demographic groups that will participate on the bigger stakes and on the full dining experience.

所以這對我們來說確實是一個獲得品牌機會的機會。因此，我們相信有一定程度的消費者是敏感的，我們希望確保為他們提供仍然體驗品牌的機會。但菜單上的定價策略實際上是針對我們人口中的高端群體，他們將參與更大的賭注和完整的用餐體驗。

So our strategy is really use value layers to make brand super accessible to everybody. And then when you are in the restaurants -- if you -- because there's still a very -- I think there's a higher level of spending on the higher-end demographics that is still intact. And so having the higher price points and having also promotions with items like Wagyu and other stuff that is, frankly, very pricey, works really well.

所以我們的策略是真正利用價值層讓每個人都能輕鬆接觸到品牌。然後，當你在餐館裡時——如果你——因為仍然有一個非常——我認為高端人群的支出水平仍然完好無損。因此，擁有更高的價格點，並針對和牛和其他坦率地說非常昂貴的商品進行促銷，效果非常好。

So it's a one-two punch, really bringing people in with the messaging, the marketing, the positioning that we are an accessible brand and then once you're in, it's giving the choice to the core customer of the brands to participate on the premium products within the brands.

所以這是一擊兩拳，真正透過資訊、行銷、定位讓人們了解我們是一個平易近人的品牌，然後一旦你進入，就可以選擇讓品牌的核心客戶參與其中品牌內的優質產品。

Okay. Next question was just private events and your outlook for private events here as we move into kind of holiday season fourth quarter on total results.

好的。下一個問題只是私人活動以及您對私人活動的展望，因為我們進入了第四季度的假期季節總結果。

Yeah. I mean our visibility right now, I mean, we tend to be about 30% to 40% of the books built by this time of the maybe a little bit higher by today. But we do have a pretty good visibility. All reports right now is that we do have a very strong book coming into the quarter. So I'm actually super pleased about that. And now we're really focusing more around the holidays, which we dominate, so Thanksgiving and Christmas Day and also New Year's Eve, so really focusing on maximizing and really it's all about managing capacity on those days.

是的。我的意思是，我們現在的知名度，我的意思是，我們的圖書中大約有 30% 到 40% 是在這個時候出版的，到今天可能會更高一些。但我們確實有很好的能見度。現在所有的報告都表明，我們本季確實有一本非常強勁的書。所以我對此感到非常高興。現在，我們確實更專注於我們主導的假期，例如感恩節、聖誕節以及除夕夜，因此真正專注於最大化，實際上這一切都與管理這些日子的容量有關。

So I would say that right now the events book is really powerful. And as always, the challenge is that we do have limited space in some of our restaurants. So it's always about how you manage the capacity during those four or five weeks in December that really make it happen. So it's really about that.

所以我想說，現在事件書真的很強大。像往常一樣，我們面臨的挑戰是一些餐廳的空間有限。因此，真正實現這一目標的關鍵在於如何在 12 月的四到五週內管理容量。所以這確實是關於這個的。

But the early demand is strong and we still haven't done our full promoting on it yet. So there will be some promotions and marketing that we'll be doing in the next couple of weeks that should even further that. So I'm pretty bullish on the event output for the quarter.

但前期需求旺盛，我們還沒有全力推廣。因此，我們將在接下來的幾週內進行一些促銷和行銷活動，以進一步推動這一目標。因此，我非常看好本季的活動產出。

Okay. And last question for me was just looking at some of the cost cutting initiatives, you've talked about some, I'm not sure if I picked them up. Can you talk any more in depth about what areas you're looking at, where do you expect this to hit? And then maybe if some of this is outside of the four walls of the restaurant, within corporate overheads.

好的。我的最後一個問題只是關註一些成本削減舉措，您已經談到了一些，我不確定我是否接受了它們。您能否更深入地談談您正在關注哪些領域？您預計這會影響哪些領域？也許其中一些是在餐廳四牆之外、在公司管理費用之內的。

Yeah, Mark, this is Tyler. So in terms of cost initiatives, I think really walking down through the P&L, I think we're really thinking through scheduling and smart scheduling in the restaurants, making sure that we're staffed appropriately for the volumes by day of week and by day apart and then really other operating expenses around operating supplies and some of the costs that I think are embedded in the model that just are not as guest-facing and finding out optimization there.

是的，馬克，這是泰勒。因此，就成本計劃而言，我認為真正仔細考慮損益表，我認為我們確實在考慮餐廳的調度和智能調度，確保我們為每周和每天的數量配備適當的人員除此之外，還有圍繞營運供應的其他營運費用，以及我認為模型中嵌入的一些成本，這些成本並不是面向客人並在那裡找到優化的。

And then we talked about it a little bit, but I think really from an overhead perspective, some of the soft costs around travel and some of the soft costs in G&A, just being really thoughtful about those expenses.

然後我們討論了一點，但我認為實際上從管理費用的角度來看，旅行方面的一些軟成本以及一般管理費用方面的一些軟成本，只是要真正考慮到這些費用。

Yeah, I mean, I would say on the travel. The big one for us is the cities that we travel to are not exactly inexpensive cities to travel into a particularly from a hotel and airfare, so really instituting a lot of discipline around booking flights earlier and really making sure that we get the right rates with hotel, so just being very smart on travel.

是的，我的意思是，我想說的是旅行。對我們來說，最重要的是我們旅行的城市並不是便宜的城市，特別是從酒店和機票來看，因此在儘早預訂航班方面確實制定了很多紀律，並真正確保我們獲得正確的價格酒店，所以旅行時非常明智。

And we did take some positions that were not critical, we didn't replace them on the G&A. So there's been some attrition on G&A and positions that we've chosen on the short term to hold back on. And there's other soft things that we kind of -- we used to do secret shopper reports every week, every restaurant.

我們確實採取了一些不重要的立場，我們沒有在一般行政費用上替換它們。因此，我們選擇在短期內保留一些一般管理費用和部位。我們還有其他一些軟性的東西——我們過去每週都會為每家餐廳做秘密購物者報告。

We decided to go down to one every two weeks, so that cut some costs out. So we've taken out some of our hot points in the restaurants, which are those booths, they take pictures and stuff like that. So we've trimmed out some of the things that we don't think impact guest experiences that help off the P&L.

我們決定減少到每兩週一次，這樣可以節省一些成本。所以我們去掉了餐廳裡的一些熱點，就是那些攤位，他們拍照之類的。因此，我們刪除了一些我們認為不會影響賓客體驗的因素，有助於減少損益。

Great, Thank you.

太好了謝謝。

Thank you all very much. This concludes our question-and-answer session. I would like to turn the conference back over to Manny Hilario for any closing remarks.

非常感謝大家。我們的問答環節到此結束。我想將會議轉回曼尼·希拉里奧（Manny Hilario）發表閉幕詞。

Thank you for your continued interest on The ONE Group, we always appreciate you being here with us to listen to our story and what we're working on. And particularly, in this fourth quarter I will look forward to see you all in our restaurants. Everyone have a great day.

感謝您對 The ONE Group 的持續關注，我們始終感謝您與我們一起聆聽我們的故事以及我們正在進行的工作。特別是，在第四季度，我期待在我們的餐廳見到你們。每個人都度過了美好的一天。

This conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines. Have a good day.

本次會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。祝你有美好的一天。