ONE Group Hospitality, Inc. Segments Disclosure
Note 15 – Segment Reporting
The Company has identified its reportable operating segments as follows:
| ● | 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. |
| ● | Benihana. The Benihana segment consists of the results of operations from Benihana restaurant locations, as well as franchise revenue from the Benihana brand. |
| ● | Grill Concepts. The Grill Concepts segment consists of the results of operations of Kona Grill and RA Sushi restaurant locations. |
Presented within Other, which is not a reportable operating segment, is sales and expenses that relate to 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 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 years ended December 28, 2025 and December 31, 2024 for each segment is provided below (in thousands).
| STK | | Benihana | | Grill Concepts | | Other(1) | | Total | ||||||
For the year ended December 28, 2025 | |||||||||||||||
Owned restaurant net revenues |
| $ | 211,257 | $ | 442,029 | $ | 137,788 | $ | 688 | $ | 791,762 | ||||
Owned restaurant cost of sales | (49,547) | (84,213) | (29,803) | (16) | (163,579) | ||||||||||
Owned restaurant operating expenses | (123,822) | (277,132) | (101,741) | (375) | (503,070) | ||||||||||
Restaurant operating profit | 37,888 | 80,684 | 6,244 | 297 | 125,113 | ||||||||||
Management, license, franchise and incentive fee revenue | 11,710 | 1,939 | — | 311 | 13,960 | ||||||||||
General and administrative expenses | (52,540) | ||||||||||||||
Depreciation and amortization | (43,192) | ||||||||||||||
Transition and integration expenses | (11,202) | ||||||||||||||
Loss on impairment of non-current assets | (10,610) | ||||||||||||||
Lease termination and exit expenses | (7,949) | ||||||||||||||
Pre-opening expenses | (5,741) | ||||||||||||||
Transaction and exit costs | (256) | ||||||||||||||
Other (income) expenses | 418 | ||||||||||||||
Interest expense, net of interest income | (40,902) | ||||||||||||||
Loss before benefit for income taxes | (32,901) | ||||||||||||||
Reconciliation of total revenues | |||||||||||||||
Owned restaurant net revenues | 791,762 | ||||||||||||||
Management, license, franchise, and incentive fee revenue | 13,960 | ||||||||||||||
Total revenues | $ | 805,722 | |||||||||||||
STK | | Benihana | | Grill Concepts | | Other(1) | | Total | |||||||
For the year ended December 31, 2024 | |||||||||||||||
Owned restaurant net revenues | $ | 204,713 | $ | 296,847 | $ | 155,851 | $ | 1,504 | $ | 658,915 | |||||
Owned restaurant cost of sales | (49,250) | (56,191) | (33,309) | (44) | (138,794) | ||||||||||
Owned restaurant operating expenses | (117,357) | (182,523) | (113,451) | (256) | (413,587) | ||||||||||
Restaurant operating profit | 38,106 | 58,133 | 9,091 | 1,204 | 106,534 | ||||||||||
Management, license, franchise and incentive fee revenue | 12,516 | 1,595 | — | 318 | 14,429 | ||||||||||
General and administrative expenses | (44,234) | ||||||||||||||
Depreciation and amortization | (34,096) | ||||||||||||||
Transition and integration expenses | (13,681) | ||||||||||||||
Loss on impairment of non-current assets | — | ||||||||||||||
Lease termination and exit expenses | (1,567) | ||||||||||||||
Transaction and exit costs | (8,855) | ||||||||||||||
Other (income) expenses | (124) | ||||||||||||||
Interest expense, net of interest income | (31,109) | ||||||||||||||
Loss on early debt extinguishment | (4,149) | ||||||||||||||
Income before benefit for income taxes | (26,361) | ||||||||||||||
Reconciliation of total revenues | |||||||||||||||
Owned restaurant net revenues | 658,915 | ||||||||||||||
Management, license, franchise, and incentive fee revenue | 14,429 | ||||||||||||||
Total revenues | $ | 673,344 | |||||||||||||
| (1) | Other, which is not a reportable operating segment, includes sales and expenses that relate to 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. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 19, 2021 | |
| 2019 | Mar 26, 2020 | |
| 2018 | Mar 28, 2019 | |
| 2017 | Apr 17, 2018 | |
| 2016 | Apr 5, 2017 | |
| 2015 | Mar 30, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.