Nick Setyan's questions to ONE Group Hospitality (STKS) leadership • Q4 2024
Question
Nick Setyan questioned the sales performance of recent Kona Grill and RA Sushi openings and asked for an update on current construction costs for new restaurants. He also asked if it was fair to assume Benihana's comparable sales turned positive in Q1 2025, given the commentary on sequential improvement.
Answer
CEO Emanuel Hilario reported that recent openings are performing well, with the RA Sushi in Plantation tracking on-brand and the new Saltwater Social concept exceeding expectations. He stated that gross construction costs are currently in the $600s-$700 per square foot range, with net costs in the mid-$500s after tenant allowances. While not providing specific brand guidance for Q1, Hilario confirmed Benihana's positive progression from a nearly flat Q4 (-20 bps), attributing the momentum to initiatives around happy hour, throughput, and product innovation, which also drove a 300 basis point margin improvement for the brand.