ONE Group Hospitality, Inc.

Previous wording

We are an international restaurant company that develops, owns and operates, manages, licenses and franchises upscale and polished casual, high-energy restaurants. Our vision is to be the undisputed global leader in VIBE dining by executing upon our mission of creating great guest memories by operating the best restaurant in every market that we operate in by delivering exceptional and unforgettable experiences to every guest, every time. We design all our restaurants, lounges and F&B services to create a social dining and high-energy entertainment experience within a destination location. We believe that this design and philosophy separates us from more traditional restaurant and foodservice competitors.

Current wording

We are an international restaurant company that develops, owns and operates, manages, licenses and franchises upscale and polished casual, high-energy restaurants. Our vision is to be the undisputed global leader in VIBE dining by executing upon our mission of creating great guest memories by operating the best restaurant in every market by delivering exceptional and unforgettable experiences to every guest, every time. We design all our restaurants, lounges and F&B services to create a social dining and high-energy entertainment experience within a destination location. We believe that this design and philosophy separates us from more traditional restaurant and foodservice competitors.

Previous wording

We opened our first restaurant in January 2004 in New York, New York. We currently own, operate, manage, license or franchise 158 venues including 32 STKs, 86 Benihanas, 22 Kona Grills and 12 RAs** **in major cities in North America, Europe, Latin America and the Middle East and 6 F&B venues operated under ONE Hospitality in three hotels and casinos throughout the United States and Europe.

Current wording

We opened our first restaurant in January 2004 in New York, New York. We currently own, operate, manage, license or franchise 155 venues including 31 STKs, 86 Benihanas (including four at sports arenas and two Benihana Express), 20 Kona Grills and 12 RAs** **in major cities in North

Previous wording

We intend to open six to ten new venues in 2026. We have opened the following restaurants to date in 2026:

Current wording

We intend to open six to eight new venues in 2026. We have opened the following restaurants to date in 2026:

Previous wording

There are currently the following restaurants under construction:

Current wording

We currently have the following restaurants under construction or in development:

Previous wording

During the second quarter of 2026, we converted a franchised Benihana Express to a Company-owned Benihana Express restaurant and terminated an agreement for a franchised Benihana Express restaurant.

Current wording

During the first quarter of 2026, we relocated an owned Kona Grill restaurant in San Antonio, Texas and converted a franchised Benihana restaurant to a Company-owned Benihana restaurant. During the second quarter of 2026, we converted a franchised Benihana Express to a Company-owned Benihana Express restaurant.

Previous wording

In 2025, we completed a comprehensive review of our Grill Concepts portfolio and made the strategic decision to close or convert several locations. As part of this initiative, we permanently closed one RA restaurant in January 2026. In addition, we temporarily closed three Kona Grill restaurants and two RA restaurants in January 2026 that will be converted into a Benihana or STK restaurant.

Current wording

In 2025, we completed a comprehensive review of our Grill Concepts portfolio and made the strategic decision to close or convert several locations. As part of this initiative, we permanently closed one RA restaurant in January 2026 and temporarily closed three Kona Grill restaurants and two RA restaurants that will be converted into a Benihana or STK restaurant. During the fourth quarter of 2026, we permanently closed two Kona Grill restaurants due to lease expiration and temporarily closed three Kona Grill restaurants and one RA restaurant that will be converted into a Benihana or STK restaurant.

Previous wording

Total revenues decreased $5.2 million, or 1.2%, to $413.3 million for the six periods ended June 28, 2026 compared to $418.5 million for the six periods ended June 29, 2025. The change in revenue is attributable to the closures of certain restaurants pursuant to the Grill Concepts portfolio optimization discussed above.

Current wording

Total revenues were $177.0 million for the three periods ended September 27, 2026, a decrease of $3.2 million, or 1.8% compared to $180.2 million for the three periods ended September 28, 2025. The change in revenue is attributable to the closures of certain restaurants pursuant to the Grill Concepts portfolio optimization discussed above, offset by revenue from new restaurants opened since the third quarter of 2025.

Previous wording

Restaurant operating profit improved $1.2 million, or 3.8%, to $32.4 million for the three periods ended June 28, 2026, compared to $31.2 million for the three periods ended June 29, 2025. Restaurant operating profit as a percentage of owned restaurant net revenue was 16.4% in the second quarter of 2026 compared to 15.3% in the second quarter of 2025. See “Results of Operations” below for a reconciliation of Restaurant operating profit to Operating income, the most directly comparable GAAP measure.

Current wording

Restaurant operating profit improved $3.0 million, or 14.7%, to $23.1 million for the three periods ended September 27, 2026, compared to $20.1 million for the three periods ended September 28, 2025. Restaurant operating profit as a percentage of owned restaurant net revenue was 13.2% in the third quarter of 2026 compared to 11.3% in the third quarter of 2025, primarily attributable to lower cost of sales due to beef strategy, supply chain initiatives and menu optimization. See “Results of Operations” below for a reconciliation of Restaurant operating profit to Operating (loss) income, the most directly comparable GAAP measure.

Previous wording

Net loss attributable to The ONE Group Hospitality, Inc. was $2.1 million for the three periods ended June 28, 2026, compared to a net loss of $10.1 million for the three periods ended June 29, 2025, primarily due to improved restaurant operating profit coupled with the decrease in transition and integration costs related to the acquisition of the Benihana and RA restaurants.

Current wording

Net loss attributable to The ONE Group Hospitality, Inc. was $16.1 million for the three periods ended September 27, 2026, compared to a net loss of $76.7 million for the three periods ended September 28, 2025, primarily due to improved restaurant operating profit. In addition, we recorded a full valuation allowance in the three periods ended September 28, 2025.

Previous wording

Total revenue decreased $6.9 million, or 3.3% to $200.5 million for the three periods ended June 28, 2026 compared to $207.4 million for the three periods ended June 29, 2025. The change in revenue is attributable to the closures of certain restaurants pursuant to the Grill Concepts portfolio optimization discussed above.

Current wording

Total revenues decreased $8.5 million, or 1.4%, to $590.3 million for the nine periods ended September 27, 2026 compared to $598.8 million for the nine periods ended September 28, 2025. The change in revenue is attributable to the closures of certain restaurants pursuant to the Grill Concepts portfolio optimization discussed above, offset by revenue from new restaurants opened since the third quarter of 2025.

Previous wording

Operating income increased $9.1 million to $20.5 million for the six periods ended June 28, 2026 compared to $11.4 million for the six periods ended June 29, 2025 primarily due to improved restaurant operating profit partly offset by higher general and administrative expenses coupled with the reduction in transition and integration costs related to the acquisition of Benihana and RA restaurants.

Current wording

Operating income increased $11.1 million to $14.6 million for the nine periods ended September 27, 2026 compared to $3.5 million for the nine periods ended September 28, 2025 primarily due to improved restaurant operating profit and the reduction in transition and integration costs related to the acquisition of Benihana and RA restaurants.

Previous wording

Restaurant operating profit increased $5.4 million or 8.1% to $72.1 million for the six periods ended June 28, 2026, compared to $66.7 million for the six periods ended June 29, 2025, primarily attributable to lower cost of sales due to menu optimization, integration synergies, supply chain initiatives and increased menu pricing. Restaurant operating profit as a percentage of owned restaurant net revenue was 17.7% for the six periods ended June 28, 2026, compared to 16.2% for the six periods ended June 29, 2025. See “Results of Operations” below for reconciliation of Restaurant operating profit to Operating income, the most directly comparable GAAP measure.

Current wording

Restaurant operating profit increased $8.4 million or 9.6% to $95.2 million for the nine periods ended September 27, 2026, compared to $86.8 million for the nine periods ended September 28, 2025, primarily attributable to lower cost of sales due to beef strategy, menu optimization and supply chain initiatives. Restaurant operating profit as a percentage of owned restaurant net revenue was 16.4% for the nine periods ended September 27, 2026, compared to 14.8% for the nine periods ended September 28, 2025. See “Results of Operations” below for reconciliation of Restaurant operating profit to Operating income, the most directly comparable GAAP measure.

Previous wording

Net income attributable to The ONE Group Hospitality, Inc. was $1.1 million for the six periods ended June 28, 2026, compared to a net loss of $9.1 million for the six periods ended June 29, 2025, primarily due to improved Restaurant operating profit partly offset by higher general and administrative expenses coupled with the decrease in transition and integration costs related to the acquisition of the Benihana and RA restaurants.

Current wording

Net loss attributable to The ONE Group Hospitality, Inc. was $15.0 million for the nine periods ended September 27, 2026, compared to a net loss of $85.9 million for the nine periods ended September 28, 2025, primarily due to improved restaurant operating profit coupled with the decrease in transition and integration costs related to the acquisition of the Benihana and RA restaurants partly offset by higher general and administrative expenses. In addition, we recorded a full valuation allowance in the nine periods ended September 28, 2025.

Previous wording

EBITDA, Adjusted EBITDA, Restaurant operating profit and Restaurant EBITDA are presented in this Quarterly Report on Form 10-Q to supplement other measures of financial performance. EBITDA, Adjusted EBITDA, Restaurant operating profit and Restaurant EBITDA are not required by, or presented in accordance with, accounting principles generally accepted in the U.S. (“GAAP”). We define EBITDA as net income before interest expense, provision for income taxes and depreciation and amortization. We define Adjusted EBITDA as net income before interest expense, provision for income taxes, depreciation and amortization, stock-based compensation, lease termination and restaurant closure expenses, transition and integration expenses, transaction costs, non-cash rent, non-cash impairment loss, non-recurring gains and losses, certain transactional and exit costs and loss on early debt extinguishment. Not all the aforementioned items defining Adjusted EBITDA occur in each reporting period but have been included in our definitions of terms based on our historical activity. Adjusted EBITDA presented in this Quarterly Report on Form 10-Q is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. We define Restaurant operating profit as owned restaurant net revenue minus owned restaurant cost of sales and owned restaurant operating expenses. We define Restaurant EBITDA as owned restaurant net revenue minus owned restaurant cost of sales and owned restaurant operating expenses before non-cash rent.

Current wording

EBITDA, Adjusted EBITDA, Restaurant operating profit and Restaurant EBITDA are presented in this Quarterly Report on Form 10-Q to supplement other measures of financial performance. EBITDA, Adjusted EBITDA, Restaurant operating profit and Restaurant EBITDA are not required by, or presented in accordance with, accounting principles generally accepted in the U.S. (“GAAP”). We define EBITDA as net (loss) income before interest expense, (benefit) provision for income taxes and depreciation and amortization. We define Adjusted EBITDA as net income before interest expense, provision (benefit) for income taxes, depreciation and amortization, stock-based compensation, non-cash impairment loss lease termination and restaurant closure expenses, transition and integration expenses, transaction costs, non-cash rent, non-cash impairment loss, non-recurring gains and losses, certain transactional and exit costs and loss on early debt extinguishment. Not all the aforementioned items defining Adjusted EBITDA occur in each reporting period but have been included in our definitions of terms based on our historical activity. Adjusted EBITDA presented in this Quarterly Report on Form 10-Q is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. We define Restaurant operating profit as owned restaurant net revenue minus owned restaurant cost of sales and owned restaurant operating expenses. We define Restaurant EBITDA as owned restaurant net revenue minus owned restaurant cost of sales and owned restaurant operating expenses before non-cash rent.

Previous wording

The following table presents a reconciliation of Owned restaurant net revenue for the six periods ended June 28, 2026 to the six periods ended June 29, 2025 (in thousands):

Current wording

The following table presents a reconciliation of Owned restaurant net revenue for the nine periods ended September 27, 2026 to the nine periods ended September 28, 2025 (in thousands):

Previous wording

The following table presents a reconciliation of Operating income to Restaurant operating profit for the periods indicated (in thousands):

Current wording

The following table presents a reconciliation of Operating (loss) income to Restaurant operating profit for the periods indicated (in thousands):

Previous wording

Management, license, franchise and incentive fee revenue*.* Management, license, franchise and incentive fee revenues decreased $0.3 million to $3.2 million for the three periods ended June 28, 2026 compared to $3.5 million for the three periods ended June 29, 2025, primarily due to the exit of a management agreement in Scottsdale, Arizona in the second quarter of 2025.

Current wording

Management, license, franchise and incentive fee revenue*.* Management, license, franchise and incentive fee revenues decreased $0.1 million to $2.7 million for the three periods ended September 27, 2026 compared to $2.8 million for the three periods ended September 28, 2025.

Previous wording

Owned restaurant cost of sales*.* Food and beverage costs for owned restaurants decreased $4.7 million, or 10.9%, to $38.5 million for the three periods ended June 28, 2026 from $43.2 million for the three periods ended June 29, 2025. As a percentage of owned restaurant net revenue, cost of sales improved by 170 basis points to 19.5% for the three periods ended June 28, 2026 compared to 21.2% for the three periods ended June 29, 2025 primarily due to menu optimization, integration synergies, supply chain initiatives and increased menu pricing.

Current wording

Owned restaurant cost of sales*.* Food and beverage costs for owned restaurants decreased $3.5 million, or 9.4%, to $33.9 million for the three periods ended September 27, 2026 from $37.4 million for the three periods ended September 28, 2025. As a percentage of owned restaurant net revenue, cost of sales decreased by 160 basis points to 19.5% for the three periods ended September 27, 2026 compared to 21.1% for the three periods ended September 28, 2025 primarily due to beef strategy, menu optimization and supply chain initiatives.

Previous wording

Owned restaurant operating expenses*.*Owned restaurant operating expenses decreased $3.2 million, or 2.5% to $126.3 million for the three periods ended June 28, 2026 from $129.5 million for the three periods ended June 29, 2025. Owned restaurant operating costs as a percentage of owned restaurant net revenue increased 50 basis points from 63.5% in the three periods ended June 29, 2025 to 64.0% for the three periods ended June 28, 2026 primarily due to an increase in marketing expenses.

Current wording

Owned restaurant operating expenses*.*Owned restaurant operating expenses decreased $2.6 million, or 2.2% to $117.3 million for the three periods ended September 27, 2026 from $119.9 million for the three periods ended September 28, 2025. Owned restaurant operating costs as a percentage of owned restaurant net revenue decreased 30 basis points from 67.6% in the three periods ended September 28, 2025 to 67.3% for the three periods ended September 27, 2026 primarily due to management of controllable expenses.

Previous wording

General and administrative*.* General and administrative costs increased $2.3 million, or 19.7%, to $14.0 million for the three periods ended June 28, 2026 from $11.7 million for the three periods ended June 29, 2025. The increase was attributable to inflation on salaries, higher bonus expense, planned investments in information technology, including AI-related technologies, and increased travel expenses. As a percentage of revenues, general and administrative costs were 7.0% for the three periods ended June 28, 2026 compared to 5.6% for the three periods ended June 29, 2025.

Current wording

General and administrative*.* General and administrative costs were flat at $13.3 million for the three periods ended September 27, 2026 and the three periods ended September 28, 2025. As a percentage of revenues, general and administrative costs were 7.5% for the three periods ended September 27, 2026 compared to 7.4% for the three periods ended September 28, 2025.

Previous wording

Depreciation and amortization*.* Depreciation and amortization expense was $11.0 million for the three periods ended June 28, 2026, compared to $10.9 million for the three periods ended June 29, 2025.

Current wording

Depreciation and amortization*.* Depreciation and amortization expense was $11.7 million for the three periods ended September 27, 2026, compared to $11.5 million for the three periods ended September 28, 2025.

Previous wording

Lease termination and restaurant closure expenses. Lease termination and restaurant closure expenses were $0.9 million for the three periods ended June 28, 2026, which consisted primarily of expenses related to the Grill Concepts optimization and the relocation of an STK restaurant in New York, New York. Lease termination and restaurant closure expenses were $5.6 million for the three periods ended June 29, 2025 primarily related to accelerated depreciation as well as exit costs associated with five Grill Concept restaurants closed during the quarter and the termination of an operating agreement.

Current wording

Lease termination and restaurant closure expenses. Lease termination and restaurant closure expenses were $1.4 million for the three periods ended September 27, 2026, which consisted primarily of expenses related to the Grill Concepts optimization and the closure of an STK restaurant in New York, New York upon lease expiration. Lease termination and restaurant closure income was $0.3 million for the three periods ended September 28, 2025 primarily related to the termination of lease possession for two restaurants closed during the second quarter and the resulting write-off of the right-of-use asset and liability.

Previous wording

Pre-opening expenses. In the three periods ended June 28, 2026, we incurred $2.9 million of pre-opening expenses primarily comprised of payroll, training and other costs for STK Downtown Phoenix, which opened in June 2026, and STK Chelsea, which opened in July 2026, preopen rent for restaurants that the Company has possession of, which included $1.1 million in non-cash rent, and pre-opening expenses for restaurants currently under development. Pre-opening expenses for the three periods ended June 29, 2025 were $1.6 million. Details of pre-opening expenses by category are provided in the table below for the three periods ended June 28, 2026 and three periods ended June 29, 2025 (in thousands).

Current wording

Pre-opening expenses. In the three periods ended September 27, 2026, we incurred $2.7 million of pre-opening expenses primarily comprised of payroll, training and other costs for STK Chelsea and Benihana Riverton, which opened in July 2026, STK Baltimore, which opened in September 2026, pre-open rent for restaurants that the Company has possession of, which included $0.6 million in non-cash rent, and pre-opening expenses for restaurants currently under development. Pre-opening expenses for the three periods ended September 28, 2025 were $0.7 million. Details of pre-opening expenses by category are provided in the table below for the three periods ended September 27, 2026 and three periods ended September 28, 2025 (in thousands).

Previous wording

Transition and integration costs*.* In the three periods ended June 28, 2026, we incurred $0.2 million in transition and integration costs associated with the acquisition of the Benihana and RA restaurants for expenses related to temporary rentals of heating, ventilation and air conditioning equipment while we complete repairs and replacements of equipment acquired with the Benihana and RA restaurants. In the three periods ended June 29, 2025, we incurred $3.9 million of transition and integration costs associated with the acquisition of the Benihana and RA restaurants. Included in these costs are expenses related to duplicate professional service vendors, operations support offices, support positions, and maintenance expenses that have since been eliminated.

Current wording

Transition and integration costs*.* In the three periods ended September 27, 2026, we incurred $2.4 million in transition and integration costs associated with the acquisition of the Benihana and RA restaurants for expenses related to temporary rentals of heating, ventilation and air conditioning equipment while we complete repairs and replacements of equipment acquired with the Benihana and RA restaurants. In the three periods ended September 28, 2025, we incurred $2.6 million of transition and integration costs associated with the acquisition of the Benihana and RA restaurants. Included in these costs are expenses related to duplicate professional service vendors, operations support offices, support positions, and temporary rental expenses discussed above.

Previous wording

Interest expense, net of interest income. Interest expense, net of interest income, was $9.6 million for the three periods ended June 28, 2026 compared to $10.3 million for the three periods ended June 29, 2025. The weighted average interest rate for the three periods ended June 28, 2026 was 10.1% compared to 10.8% for the three periods ended June 29, 2025.

Current wording

Interest expense, net of interest income. Interest expense, net of interest income, was $10.0 million for the three periods ended September 27, 2026 compared to $10.5 million for the three periods ended September 28, 2025. The weighted average interest rate for the three periods ended September 27, 2026 was 10.2% compared to 10.7% for the three periods ended September 28, 2025.

Previous wording

(Benefit) Provision for income taxes*.* The benefit for income taxes for the three periods ended June 28, 2026 was $0.7 million compared to $0.7 million of tax expense for the three periods ended June 29, 2025. The effective income tax rate for the second quarter of 2026 was 23.4% compared to 7.3% for the second quarter of 2025.

Current wording

Provision for income taxes*.* The provision for income taxes for the three periods ended September 27, 2026 was $0.5 million compared to $59.1 million of tax provision for the three periods ended September 28, 2025. A non-cash valuation allowance against the deferred tax assets was recorded during the third quarter of 2025.

Previous wording

Results of Operations for the Six Periods Ended June 28, 2026 Compared to the Six Periods Ended June 29, 2025

Current wording

Results of Operations for the Nine Periods Ended September 27, 2026 Compared to the Nine Periods Ended September 28, 2025

Previous wording

Owned restaurant net revenue*.* Owned restaurant net revenue decreased $4.7 million, or 1.1%, to $406.6 million for the six periods ended June 28, 2026, from $411.3 million for the six periods ended June 29, 2025. The change was primarily attributable to a decrease in revenues from Grill Concepts restaurants closed and the elimination of auto-gratuities, partially offset by an increase in comparable restaurant sales and sales from new restaurants opened since March 2025. Comparable restaurant sales increased 0.3% during the six periods ended June 28, 2026 compared to the six periods ended June 29, 2025.

Current wording

Owned restaurant net revenue*.* Owned restaurant net revenue decreased $7.8 million, or 1.3%, to $580.9 million for the nine periods ended September 27, 2026, from $588.7 million for the nine periods ended September 28, 2025, with $20.0 million, or 3.4%, the result of the permanent or temporary closure of restaurants as part of the Grill Concepts portfolio optimization strategy, partially offset by an increase in comparable restaurant sales and sales from new restaurants opened since October 2025. Comparable restaurant sales increased 0.1% during the nine periods ended September 27, 2026 compared to the nine periods ended September 28, 2025.

Previous wording

Management, license and incentive fee revenue*.* Management, license and incentive fee revenues decreased $0.5 million, or 6.9%, to $6.7 million for the six periods ended June 28, 2026 from $7.2 million for the six periods ended June 29, 2025 primarily due to the exit of a management agreement in Scottsdale, Arizona in the second quarter of 2025.

Current wording

Management, license and incentive fee revenue*.* Management, license and incentive fee revenues decreased $0.6 million, or 5.9%, to $9.4 million for the nine periods ended September 27, 2026 from $10.0 million for the nine periods ended September 28, 2025 primarily due to the exit of a management agreement in Scottsdale, Arizona in the second quarter of 2025.

Previous wording

Owned restaurant cost of sales*.* Food and beverage costs for owned restaurants decreased $7.2 million, or 8.3%, to $79.1 million for the six periods ended June 28, 2026, from $86.3 million for the six periods ended June 29, 2025. As a percentage of owned restaurant net revenue, cost of sales improved 160 basis points to 19.4% for the six periods ended June 28, 2026 from 21.0% in the six periods ended June 29, 2025 primarily due to menu optimization, integration synergies, supply chain initiatives and increased menu pricing.

Current wording

Owned restaurant cost of sales*.* Food and beverage costs for owned restaurants decreased $10.7 million, or 8.6%, to $113.0 million for the nine periods ended September 27, 2026, from $123.7 million for the nine periods ended September 28, 2025. As a percentage of owned restaurant net revenue, cost of sales decreased 150 basis points to 19.5% for the nine periods ended September 27, 2026 from 21.0% in the nine periods ended September 28, 2025 primarily due to beef strategy, supply chain initiatives and menu optimization.

Previous wording

Owned restaurant operating expenses*.*Owned restaurant operating expenses decreased $2.9 million to $255.4 million for the six periods ended June 28, 2026, from $258.3 million for the six periods ended June 29, 2025. Owned restaurant operating costs as a percentage of owned restaurant net revenue was flat at 62.8% for both the six periods ended June 29, 2025 and June 28, 2026.

Current wording

Owned restaurant operating expenses*.*Owned restaurant operating expenses decreased $5.6 million to $372.6 million for the nine periods ended September 27, 2026, from $378.2 million for the nine periods ended September 28, 2025. Owned restaurant operating costs as a percentage of owned restaurant net revenue was flat at 64.2% for both the nine periods ended September 28, 2025 and September 27, 2026.

Previous wording

General and administrative*.* General and administrative costs increased $4.2 million, or 16.9%, to $29.0 million for the six periods ended June 28, 2026, compared to $24.8 million for the six periods ended June 29, 2025. The increase was attributable to inflation on salaries and planned investments in information technology, including AI-related technologies. As a percentage of revenues, general and administrative costs increased by 110 basis points to 7.0% for the six periods ended June 28, 2026 compared to 5.9% for the six periods ended June 29, 2025.

Current wording

General and administrative*.* General and administrative costs increased $4.4 million, or 11.4%, to $42.4 million for the nine periods ended September 27, 2026, compared to $38.0 million for the nine periods ended September 28, 2025. The increase was attributable to inflation on salaries and planned investments in information technology, including AI-related technologies. As a percentage of revenues, general and administrative costs increased by 80 basis points to 7.2% for the nine periods ended September 27, 2026 compared to 6.4% for the nine periods ended September 28, 2025.

Previous wording

Depreciation and amortization*.* Depreciation and amortization expense increased $0.7 million to $21.4 million for the six periods ended June 28, 2026, compared to $20.7 million for the six periods ended June 29, 2025. The increase is attributed to new restaurants opened since June 2025.

Current wording

Depreciation and amortization*.* Depreciation and amortization expense increased $1.0 million to $33.2 million for the nine periods ended September 27, 2026, compared to $32.2 million for the nine periods ended September 28, 2025. The increase is attributed to new restaurants opened since October 2025.

Previous wording

Lease termination and restaurant closure expenses. Lease termination and restaurant closure expenses were $2.9 million for the six periods ended June 28, 2026, which consisted primarily of expenses related to the Grill Concepts optimization and included $0.4 million in non-cash expenses. Lease termination and restaurant closure expenses were $5.7 million for the six periods ended June 29, 2025.

Current wording

Lease termination and restaurant closure expenses. Lease termination and restaurant closure expenses were $4.2 million for the nine periods ended September 27, 2026, which consisted primarily of expenses related to the Grill Concepts portfolio optimization. Lease termination and restaurant closure expenses were $5.4 million for the nine periods ended September 28, 2025.

Previous wording

Pre-opening expenses. In the six periods ended June 28, 2026, we incurred $4.3 million of pre-opening expenses primarily comprised of payroll, training and other costs for STK Downtown Phoenix, which opened in June 2026, and STK Chelsea, which opened in July 2026, preopen rent for restaurants that the Company has possession of, which included $1.6 million in non-cash rent, and pre-opening expenses for restaurants currently under development. Pre-opening expenses for the six periods ended June 29, 2025 were $3.3 million. Details of pre-opening expenses by category are provided in the table below for the six periods ended June 28, 2026 and June 28, 2025 (in thousands).

Current wording

Pre-opening expenses. In the nine periods ended September 27, 2026, we incurred $7.1 million of pre-opening expenses primarily comprised of payroll, training and other costs for five restaurants opened during the first nine periods of 2026, preopen rent for restaurants that the Company has possession of, which included $2.2 million in non-cash rent, and pre-opening expenses for restaurants opened subsequent to the end of the third quarter or currently under development. Pre-opening expenses for the nine periods ended September 28, 2025 were $4.0 million. Details of pre-opening expenses by category are provided in the table below for the nine periods ended September 27, 2026 and September 28, 2025 (in thousands).

Previous wording

Transition and integration costs*.* In the six periods ended June 28, 2026, we incurred $0.7 million in transition and integration costs associated with the acquisition of Benihana and RA restaurants for expenses related to temporary rentals of heating, ventilation and air conditioning equipment while we complete repairs and replacement of equipment acquired with the Benihana and RA restaurants. In the six periods ended June 29, 2025, we incurred $7.7 million of transition and integration costs associated with the acquisition of the Benihana and RA restaurants. Included in these costs are expenses related to identified duplicate professional service vendors, operational support offices, support positions, and maintenance expenses that have since been eliminated.

Current wording

Transition and integration costs*.* In the nine periods ended September 27, 2026, we incurred $3.0 million in transition and integration costs associated with the acquisition of Benihana and RA restaurants for expenses related to temporary rentals of heating, ventilation and air conditioning equipment while we complete repairs and replacement of equipment acquired with the Benihana and RA restaurants. In the nine periods ended September 28, 2025, we incurred $10.3 million of transition and integration costs associated with the acquisition of the Benihana and RA restaurants. Included in these costs are expenses related to identified duplicate professional service vendors, operational support offices, support positions, and temporary rentals as discussed above.

Previous wording

Interest expense, net of interest income*.* Interest expense, net of interest income, was $19.4 million for the six periods ended June 28, 2026 compared to $20.1 million for the six periods ended June 29, 2025. The weighted average interest rate for the six periods ended June 28, 2026 was 10.2% compared to 10.9% for the six periods ended June 29, 2025.

Current wording

Interest expense, net of interest income*.* Interest expense, net of interest income, was $29.4 million for the nine periods ended September 27, 2026 compared to $30.6 million for the nine periods ended September 28, 2025. The weighted average interest rate for the nine periods ended September 27, 2026 was 10.2% compared to 10.8% for the nine periods ended September 28, 2025.

Previous wording

(Benefit) provision for income taxes*.* The provision for income taxes for the six periods ended June 28, 2026 was $0.4 million, compared to $1.0 million for the six periods ended June 29, 2025. The effective income tax rate for the second quarter of 2026 was 41.1% compared to (11.3%) for the second quarter of 2025.

Current wording

Provision for income taxes*.* The provision for income taxes for the nine periods ended September 27, 2026 was $1.0 million, compared to $60.1 million for the nine periods ended September 28, 2025. A non-cash valuation allowance was recorded during the third quarter of 2025 against the deferred tax assets.

Previous wording

Our principal liquidity requirements are to meet our lease obligations, working capital and capital expenditure needs and to pay principal and interest on outstanding debt. Subject to our operating performance, which, if significantly adversely affected, would adversely affect the availability of funds, we expect to finance our operations for at least the next 12 months and the foreseeable future, including the costs of opening currently planned new restaurants, through cash provided by operations, construction allowances provided by landlords of certain locations and borrowings under our Credit Agreement. We also may borrow on our Revolving Facility or issue equity, including preferred stock, to support ongoing business operations. We believe these sources of financing are adequate to support our immediate business operations and plans. As of June 28, 2026, we had cash and cash equivalents of $6.4 million. Our credit card receivables as of June 28, 2026 were $10.7 million, which are typically collected within four days. We had $347.7 million in long-term debt, which primarily consisted of borrowings under our Credit Agreement as of June 28, 2026. As of June 28, 2026, the availability on our Revolving Facility was $28.7 million, subject to certain conditions.

Current wording

Our principal liquidity requirements are to meet our lease obligations, working capital and capital expenditure needs and to pay principal and interest on outstanding debt. Subject to our operating performance, which, if significantly adversely affected, would adversely affect the availability of funds, we expect to finance our operations for at least the next 12 months and the foreseeable future, including the costs of opening currently planned new restaurants, through cash provided by operations, construction allowances provided by landlords of certain locations and borrowings under our Credit Agreement. We also may borrow on our Revolving Facility or issue equity, including preferred stock, to support ongoing business operations. We believe these sources of financing are adequate to support our immediate business operations and plans. As of September 27, 2026, we had cash and cash equivalents of $4.0 million. Our credit card receivables as of September 27, 2026 were $10.1 million, which are typically

Previous wording

For the six periods ended June 28, 2026, capital expenditures were $23.0 million, of which $15.4 million related to the construction of new STK, Benihana and Kona Grill restaurants, $2.5 related to remodels or major projects at existing restaurants and $4.7 million related to existing restaurants. We expect to receive between $1.0 million to $1.6 million in landlord contributions in the next three months.

Current wording

For the nine periods ended September 27, 2026, capital expenditures were $34.6 million, of which $23.3 million related to the construction of new STK, Benihana and Kona Grill restaurants, $3.3 million related to remodels or major projects at existing restaurants and $7.4 million related to existing restaurants. We expect to receive between $0.5 million to $0.7 million in landlord contributions in the next three months.