ONE Group Hospitality, Inc.

Previous wording

This Quarterly Report on Form 10-Q and certain information incorporated herein by reference contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”). Forward-looking statements speak only as of the date thereof and involve risks and uncertainties that may cause our actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include the risk factors discussed under Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements, including but not limited to: (1) our ability to integrate the new or acquired restaurants into our operations without disruptions to operations; (2) our ability to capture anticipated synergies; (3) our ability to open new restaurants and food and beverage locations in current and additional markets, grow and manage growth profitably, maintain relationships with suppliers and obtain adequate supply of products and retain employees; (4 )factors beyond our control that affect the number and timing of new restaurant openings, including weather conditions and factors under the control of landlords, contractors and regulatory and/or licensing authorities; (5) our ability to successfully improve performance and cost, realize the benefits of our marketing efforts and achieve improved results as we focus on developing new management and license deals; (6) changes in applicable laws or regulations; (7) the possibility that The ONE Group may be adversely affected by other economic, business, and/or competitive factors; (8) the impact of actual and potential changes in immigration policies, including potential labor shortages; (9) the potential impact of the imposition of tariffs, including increases in food prices and inflation, and (10) other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “can,” “continue,” “ongoing,” “could,” “estimates,” “expects,” “intends,” “may,” “appears,” “suggests,” “future,” “likely,” “goal,” “plans,” “potential,” “projects,” “predicts,” “should,” “targets,” “would,” “will” and similar expressions that convey the uncertainty of future events or outcomes. You should not place undue reliance on any forward-looking statement. We do not undertake any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required under applicabl…

Excerpt shortened here; the source contains the full paragraph.

Current wording

This Quarterly Report on Form 10-Q and certain information incorporated herein by reference contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”). Forward-looking statements speak only as of the date thereof and involve risks and uncertainties that may cause our actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include the risk factors discussed under Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements, including but not limited to: (1) our ability to integrate the new or acquired restaurants into our operations without disruptions to operations; (2) our ability to capture anticipated synergies; (3) our ability to open new restaurants and food and beverage locations in current and additional markets, grow and manage growth profitably, maintain relationships with suppliers and obtain adequate supply of products and retain employees; (4) factors beyond our control that affect the number and timing of new restaurant openings, including weather conditions and factors under the control of landlords, contractors and regulatory and/or licensing authorities; (5) our ability to successfully improve performance and cost, realize the benefits of our marketing efforts and achieve improved results as we focus on developing new management and license deals; (6) changes in applicable laws or regulations; (7) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (8) the impact of actual and potential changes in immigration policies, including potential labor shortages; (9) the potential impact of the imposition of tariffs, including increases in food prices and inflation, and (10) other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “can,” “continue,” “ongoing,” “could,” “estimates,” “expects,” “intends,” “may,” “appears,” “suggests,” “future,” “likely,” “goal,” “plans,” “potential,” “projects,” “predicts,” “should,” “targets,” “would,” “will” and similar expressions that convey the uncertainty of future events or outcomes. You should not place undue reliance on any forward-looking statement. We do not undertake any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required under applicable …

Excerpt shortened here; the source contains the full paragraph.

Previous wording

We are an international restaurant company that develops, owns and operates, manages, licenses and franchises upscale and polished casual, high-energy restaurants and lounges and provides turn-key food and beverage (“F&B”) services and consulting service for hospitality venues including hotels, casinos and other high-end locations. Turn-key F&B services are food and beverage services that can be scaled, customized and implemented by us for a client. Our vision is to be the undisputed global leader in VIBE dining by executing upon our mission ofcreating great guest memoriesby 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 operating philosophy separates us from more traditional restaurant and foodservice competitors.

Current wording

We are an international restaurant company that develops, owns and operates, manages and licenses, and franchises upscale and polished casual, high-energy restaurants. Our vision is to be a global market leader in the restaurant industry by melding high-quality service, ambiance, high-energy and cuisine into one great experience that we refer to as “Vibe Dining". We design all our restaurants to create a social dining and high-energy entertainment experience within a destination location. We believe that this design and operating philosophy separates us from more traditional restaurant and foodservice competitors.

Previous wording

Our primary restaurant brands are below:

Current wording

Our primary restaurant brands are as follows:

Previous wording

We opened our first restaurant in January 2004 in New York, New York. We currently own, operate, manage, license or franchise 166 venues, including 30 STKs, 84 Benihanas, 27 Kona Grills and 16 RA Sushis in major metropolitan cities in North America, Europe and the Middle East, and 9 F&B venues in four hotels and casinos in 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 158 venues including 29 STKs, 85 Benihanas, 23 Kona Grills and 15 RA Sushis** **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.

Previous wording

There is currently one Company-owned STK restaurant and one Company-owned Kona Grill restaurant under construction in the following cities:

Current wording

There is currently one Company-owned Benihana restaurants and one Company-owned Kona Grill restaurant under construction in the following cities:

Previous wording

On May 1, 2024, we acquired 100% of the issued and outstanding equity interests of Safflower Holdings Corp. from Safflower Holdings LLC for $365.0 million, subject to customary adjustments (the “Benihana Acquisition”). Safflower Holdings Corp. beneficially owned most of the Benihana restaurants, as well as all of the RA Sushi restaurants, in the United States. We also franchise Benihana locations in the U.S., Latin America (excluding Mexico) and the Caribbean.

Current wording

On May 1, 2024, we acquired 100% of the issued and outstanding equity interests of Safflower Holdings Corp. from Safflower Holdings LLC for $365.0 million., subject to customary adjustments (the “Benihana Acquisition”). Safflower Holdings Corp. beneficially owns most of the Benihana restaurants, as well as all of the RA Sushi restaurants, in the United States. We also franchise Benihana locations in the U.S., Latin America (excluding Mexico) and the Caribbean.

Previous wording

Restaurant Operating Profit increased $22.3 million, or 169.9% to $35.5 million for the three periods ended March 30, 2025 compared to $13.2 million for the three months ended March 31, 2024. Restaurant Operating Profit as a percentage of owned restaurant net revenue was 17.1% in the first quarter of 2025 compared to 16.1% in the first quarter of 2024. Approximately $25.0 million of the increase in Restaurant Operating Profit was attributable to the addition of the Benihana and RA Sushi restaurants which were acquired on May 1, 2024 offset by a decrease in Restaurant Operating Profit from our existing business driven by fixed cost deleveraging resulting from a decrease in same store sales. See “Results of Operations” below for a reconciliation of Operating income (loss), the most directly comparable GAAP measure to Restaurant Operating Profit.

Current wording

Restaurant Operating Profit increased $1.8 million, or 6.3%, to $31.2 million for the three periods ended June 29, 2025 compared to $29.4 million for the three months ended June 30, 2024. The increase in Restaurant Operating Profit was attributable to the addition of the Benihana and RA Sushi restaurants which were acquired on May 1, 2024, offset by a decrease in Restaurant Operating Profit from our existing business driven by marketing investments and fixed cost deleveraging resulting from a decrease in same store sales. See “Results of Operations” below for a reconciliation of Operating income (loss), the most directly comparable GAAP measure to Restaurant Operating Profit.

Previous wording

Operating income increased $11.3 million to $10.7 million for the three periods ended March 30, 2025 from a loss of $0.6 million for the three months ended March 31, 2024 primarily due to the increase in operating income attributable to the acquired restaurants partially offset by transition and integration costs related to the Benihana Acquisition.

Current wording

Operating income was $11.4 million for the six periods ended June 29, 2025 compared to operating income of $0.4 million for the six months ended June 30, 2024 primarily due to the increase in operating income attributable to the acquired restaurants.

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, non-cash impairment loss, non-cash rent expense, non-recurring gains and losses, stock-based compensation, certain transactional and exit costs and transition and integration expenses. 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, 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 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, non-cash impairment loss, non-cash rent expense, non-recurring gains and losses, stock-based compensation, lease termination and exit expenses, certain transactional and exit costs, transition and integration expenses 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, owned restaurant operating expenses before non-cash rent.

Previous wording

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

Current wording

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

Previous wording

Owned restaurant net revenue*.* Owned restaurant net revenue increased $125.9 million, or 154.5%, to $207.4 million for the three periods ended March 30, 2025, from $81.5 million for the three months ended March 31, 2024. The increase was primarily attributable to the acquisition of Benihana and RA Sushi restaurants on May 1, 2024, which generated $128.3 million in revenues coupled with revenues from six restaurants opened since February 2024. Comparable restaurant sales decreased 3.2% in the three periods ended March 30, 2025 compared to the three months ended March 31, 2024.

Current wording

Owned restaurant net revenue*.* Owned restaurant net revenue increased $34.9 million, or 20.6%, to $203.9 million for the three periods ended June 29, 2025 from $169.0 million for the three months ended June 30, 2024. The increase was primarily attributable to the acquisition of Benihana and RA Sushi restaurants on May 1, 2024, which generated $128.1 million in revenues during the three periods ended June 29, 2025, compared to $88.7 million for the two-month period owned by the Company in the prior year. The increase in revenues is partially offset by a reduction in comparable restaurant sales. Comparable restaurant sales decreased 4.1% for the second quarter of 2025 compared to the second quarter of 2024.

Previous wording

Owned restaurant cost of sales*.* Food and beverage costs for owned restaurants increased $24.4 million, or 130.4%, to $43.1 million for the three periods ended March 30, 2025, from $18.7 million for the three months ended March 31, 2024. The increase in owned restaurant cost of sales is primarily attributed to $24.8 million in cost of sales associated with revenues generated by Benihana and RA Sushi restaurants acquired on May 1, 2024. As a percentage of owned restaurant net revenue, cost of sales decreased 220 basis points from 23.0% in the three months ended March 31, 2024 to 20.8% for the three periods ended March 30, 2025 primarily due to lower cost of sales for Benihana restaurants, better performance at our existing business, and integration synergies.

Current wording

Owned restaurant cost of sales*.* Food and beverage costs for owned restaurants increased $7.3 million, or 20.4%, to $43.2 million for the three periods ended June 29, 2025 from $35.9 million for the three months ended June 30, 2024. The increase in owned restaurant cost of sales is primarily attributed to cost of sales associated with the additional one period of revenue generated by Benihana and RA Sushi restaurants acquired on May 1, 2024. As a percentage of owned restaurant net revenue, cost of sales were flat at 21.2% for both the second quarter of 2025 and second quarter of 2024.

Previous wording

Owned restaurant operating expenses*.*Owned restaurant operating expenses increased $79.2 million to $128.8 million for the three periods ended March 30, 2025, from $49.6 million for the three months ended March 31, 2024. The increase in owned restaurant operating expense is primarily attributed to $78.5 million in operating expenses associated with Benihana and RA Sushi restaurants acquired on May 1, 2024. Owned restaurant operating costs as a percentage of owned restaurant net revenue increased 120 basis points from 60.9% in the three months ended March 31, 2024 to 62.1% for the three periods ended March 30, 2025 primarily due to general operating cost inflation and fixed cost deleveraging driven by a decrease in same store sales.

Current wording

Owned restaurant operating expenses*.*Owned restaurant operating expenses increased $25.7 million to $129.5 million for the three periods ended June 29, 2025 from $103.8 million for the three months ended June 30, 2024. The increase in owned restaurant operating expense is primarily attributed to the additional one period of revenues in the second quarter of 2025 associated with the Benihana and RA Sushi restaurants acquired on May 1, 2024. Owned restaurant operating costs as a percentage of owned restaurant net revenue increased 210 basis points from 61.4% in the three months ended June 30, 2024 to 63.5% for the three periods ended June 29, 2025 primarily due to investments in marketing, general cost inflation, a higher staffing model for Benihana and RA Sushi restaurants and fixed cost deleveraging driven by a decrease in same store sales.

Previous wording

General and administrative*.* General and administrative costs increased $5.6 million, or 73.8% to $13.1 million for the three periods ended March 30, 2025 compared to $7.5 million for the three months ended March 31, 2024. The increase was attributable to incremental headcount associated with the Benihana Acquisition and increased professional fees. As a percentage of revenues, general and administrative costs improved by 270 basis points to 6.2% for the three periods ended March 30, 2025 compared to 8.9% for the three months ended March 31, 2024.

Current wording

General and administrative*.* General and administrative costs increased $1.1 million, or 9.7%, to $11.7 million for the three periods ended June 29, 2025 from $10.6 million for the three months ended June 30, 2024. The increase was attributable to incremental headcount associated with the Benihana Acquisition and increased professional fees. As a percentage of revenues, general and administrative costs were 5.6% for the three periods ended June 29, 2025 compared to 6.2% for the three months ended June 30, 2024.

Previous wording

Pre-opening expenses. In the three periods ended March 30, 2025, we incurred $1.7 million of pre-opening expenses primarily comprised of payroll, training and other costs for Benihana San Mateo and STK Topanga which opened in March 2025 and April 2025, respectively, payroll and travel costs for the training team and pre-opening expenses for restaurants currently under development. Pre-opening expenses for the three months ended March 31, 2024 were $2.9 million. Details of pre-opening expenses by category are provided in the table below for the three periods ended March 30, 2025 and three months ended March 31, 2024 (in thousands).

Current wording

Pre-opening expenses. For the three periods ended June 29, 2025, we incurred $1.6 million of pre-opening expenses primarily related to payroll, training and non-cash pre-open rent for STK Topanga and the relocated STK Westwood restaurant, which opened in April 2025 and May 2025, respectively. Pre-opening expenses decreased $0.9 million compared to the prior year period primarily due to a smaller pre-opening training team. Pre-opening expenses for the three months ended June 30, 2024 were $2.5 million primarily related to payroll, training and non-cash pre-open rent for a RA Sushi restaurant which opened on July 1, 2024. We also incurred costs during the second quarter of 2024 for STK, Benihana and Kona Grill restaurants under development Detail of pre-opening expenses by category is provided in the table below for the three periods ended June 29, 2025 and three months ended June 30, 2024 (in thousands).

Previous wording

Transition and integration costs. In the three periods ended March 30, 2025, we incurred $3.7 million of transition and integration costs associated with the Benihana Acquisition, which closed on May 1, 2024. Included in these costs are expenses related to identified duplicate professional service vendors, operational support offices, support positions, and maintenance expenses that will be eliminated in the foreseeable future. We will continue to integrate Benihana by leveraging our corporate infrastructure, our supply chain, and unique Vibe Dining program, to elevate the brand experience and drive improved performance.

Current wording

Transition and integration costs*.* In the three periods ended June 29, 2025, we incurred $3.9 million of transition and integration costs associated with the Benihana Acquisition compared to $3.8 million in the prior year quarter. Included in these costs are expenses related to identified duplicate professional service vendors, operational support offices, support positions, and maintenance expenses that will be eliminated in the foreseeable future.

Previous wording

Interest expense, net of interest income*.* Interest expense, net of interest income, was $9.8 million for the three periods ended March 30, 2025 compared to $2.1 million for the three months ended March 31, 2024. We borrowed $350.0 million on May 1, 2024 to finance the Benihana Acquisition. The weighted average interest rate for the three periods ended March 30, 2025 was 10.9% compared to 12.3% for the three months ended March 31, 2024.

Current wording

Interest expense, net of interest income: Interest expense, net of interest income, was $10.3 million for the three periods ended June 29, 2025 compared to $7.9 million for the three months ended June 30, 2024. We borrowed $350.0 million on May 1, 2024 to finance the Benihana Acquisition. The weighted average interest rate for the three periods ended June 29, 2025 was 10.8% compared to 11.9% for the three months ended June 30, 2024.

Previous wording

Depreciation and amortization*.* Depreciation and amortization expense increased $4.5 million to $9.8 million for the three periods ended March 30, 2025, compared to $5.3 million for the three months ended March 31, 2024. The increase was primarily related to depreciation and amortization for the Benihana and RA Sushi restaurants acquired on May 1, 2024 coupled with depreciation associated with the opening of six new owned venues since February 2024 and capital expenditures to maintain and enhance the guest experience in our restaurants.

Current wording

Depreciation and amortization*.* Depreciation and amortization expense was $20.7 million and $13.3 million for the six periods ended June 29, 2025 and the six months ended June 30, 2024, respectively. The increase was primarily related to six periods of depreciation and amortization for the Benihana and RA Sushi restaurants acquired on May 1, 2024 compared to two months of depreciation expense in the prior year. The increase in depreciation expense is also due to new venues opened since March 2024 and capital expenditures to maintain and enhance the guest experience in our restaurants.

Previous wording

Provision (benefit) for income taxes*.* The provision for income taxes for the three periods ended March 30, 2025 was $0.3 million compared to a benefit of $0.3 million for the three months ended March 31, 2024. The effective income tax rate for the first quarter of 2025 was 31.4% compared to 9.9% for the first quarter of 2024.

Current wording

Provision (benefit) for income taxes*.* The provision for income taxes for the six periods ended June 29, 2025 was $1.0 million compared to a benefit for income taxes of $3.7 million for the six months ended June 30, 2024.

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 our 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 credit facility or issue equity, including preferred stock, to support ongoing business operations and fund additional expansion. We believe these sources of financing are adequate to support our immediate business operations and plans. As of March 30, 2025, we had cash and cash equivalents of $21.4 million and $348.3 million in long-term debt, which consisted of borrowings under our Credit Agreement. As of March 30, 2025, the availability on our revolving credit facility was $33.6 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, including the costs of opening currently planned new restaurants, through cash provided by operations and construction allowances provided by landlords of certain locations. We also may borrow on our revolving credit 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 29, 2025, we had cash and cash equivalents and restricted cash and cash equivalents totaling $5.2 million and $347.4 million in long-term debt, which consisted of borrowings under our Credit Agreement. As of June 29, 2025, the availability on our revolving credit facility was $33.6 million, subject to certain conditions.

Previous wording

For the three periods ended March 30, 2025, capital expenditures were $14.3 million of which $9.7 million related to the opening of four restaurants since September 30, 2024, including Benihana San Mateo which opened in March 2025 and STK Topanga which opened in April 2025 as well as restaurants that were under development as of March 30, 2025. We spent $4.6 million on maintenance capital expenditures for existing restaurants which included rooftops remodels at STK Orlando and Kona Grill Boca Park and replacement of furniture, fixtures, and equipment. Net capital expenditures, inclusive of $1.4 million in landlord contributions, was $12.9 million for the three periods ended March 30, 2025. We expect to receive between $0.8 million and $1.4 million in landlord contributions in the next three months.

Current wording

For the six periods ended June 29, 2025, capital expenditures were $32.1 million of which $19.9 million related to the construction of new STK, Benihana and Kona Grill restaurants and $11.8 million related to existing restaurants. Net capital expenditures, inclusive of $2.3 million in landlord contributions, was $29.8 million for the six periods ended June 29, 2025. We expect to receive between $1.5 million to $2.5 million in landlord contributions in the next three months. Capital expenditures by type for the six periods ended June 29, 2025 and the six months ended June 30, 2024, respectively, are provided below (in thousands).

Previous wording

Our future cash requirements will depend on many factors, including the pace of expansion, conditions in the retail property development market, construction costs, the nature of the specific sites selected for new restaurants, and the nature of the specific leases and associated tenant improvement allowances available, if any, as negotiated with landlords. We have made significant investments in our training and development teams to support new restaurants openings. We believe these investments are necessary to support the successful opening of our new restaurants. If we modify our growth plans, the personnel that comprise our training team could be deployed to operate existing restaurants.

Current wording

Our future cash requirements will depend on many factors, including the pace of expansion, conditions in the retail property development market, construction costs, the nature of the specific sites selected for new restaurants, and the nature of the specific leases and associated tenant improvement allowances available, if any, as negotiated with landlords. We have made significant investments in our training and development teams to support new restaurants openings. We believe these investments are necessary to support the successful opening of our new restaurants.

Previous wording

Refer to Note 6 and Note 17 to our condensed consolidated financial statements set forth in Item 1 of this Quarterly Report on Form 10-Q for further information regarding our long-term debt arrangements and commitments and contingencies.

Current wording

Refer to Note 6 and Note 17 to our condensed consolidated financial statements set forth in Item 1 of this Quarterly Report on Form 10-Q for further information regarding the terms of our long-term debt arrangements and information regarding our commitments and contingencies, respectively.

Previous wording

When we open new Company-owned restaurants, our capital expenditures for construction increase. For owned STK restaurants, where we build from a shell state, we have typically targeted a restaurant size of 8,000 square feet with a gross cash investment of approximately $700 to $750 per square foot, exclusive of $150 per square foot in landlord contributions. STK restaurants opened in 2023 and 2024 had a gross cost per square foot of $706 and $132 per square foot in landlord contributions with an average size of 10,618 square feet. For owned Benihana restaurants, where we build from a shell state, we have typically targeted a restaurant size of 7,000 square feet. In situations where we add functional space and build a restaurant with a mezzanine, covered patio, or rooftop, costs per square foot will increase. Typical cash pre-opening costs are $0.6 million to $0.8 million, excluding the impact of cash and non-cash pre-opening rent. In addition, some of our existing restaurants will require capital improvements to either maintain or improve the facilities. We may add seating or provide enclosures for outdoor space in the next twelve months for some of our locations, when we believe that will increase revenues for those locations.

Current wording

When we open new Company-owned restaurants, our capital expenditures for construction increase. For owned STK restaurants, where we build from a shell state, we have typically targeted a restaurant size of 8,000 square feet with a gross cash investment of approximately $700 to $750 per square foot, exclusive of $150 per square foot in landlord contributions. STK restaurants opened in 2023 and 2024 had a gross cost per square foot of $706 and $132 per square foot in landlord contributions with an average size of 10,618 square feet. For owned Benihana restaurants, where we build from a shell state, we have typically targeted a restaurant size of 7,000 square feet. In situations where we add functional space and build a restaurant with a mezzanine, covered patio, or rooftop, costs per square foot will increase. Typical cash pre-opening costs are $0.6 million to $0.8 million, excluding the impact of cash and non-cash pre-opening rent. In addition, some of our existing restaurants will require capital improvements to either maintain or improve

Previous wording

The following table summarizes the statement of cash flows for the three periods ended March 30, 2025 and the three months ended March 31, 2024 (in thousands):

Current wording

The following table summarizes the statement of cash flows for the six periods ended June 29, 2025 and the six months ended June 30, 2024 (in thousands):

Previous wording

Operating Activities*.*Net cash provided by operating activities was $8.5 million for the three periods ended March 30, 2025, compared to $10.4 million for the three months ended March 31, 2024. The increase was primarily attributable to the timing of payments on accounts payable and accrued expenses.

Current wording

Operating Activities*.*Net cash provided by operating activities was $11.3 million for the six periods ended June 29, 2025, compared to $6.6 million for the six months ended June 30, 2024. The change in net cash provided by operating activities was primarily attributable to the timing of collections on accounts receivables, payments on accounts payable and accrued expenses and higher net income after adjusting for non-cash expenses.

Previous wording

Investing Activities. Net cash used in investing activities for the three periods ended March 30, 2025 was $14.3 million, primarily for the construction of three restaurants opened or scheduled to opened during the first half of 2025, as well as residual payments on the two restaurants that opened during the fourth quarter of 2024 and restaurants that were under development as of March 30, 2025, as well as capital expenditures for existing restaurants, compared to $15.8 million for the three months ended March 31, 2024. Purchases of property and equipment during the three periods ended March 30, 2025 included approximately $5.5 million that was accrued as of December 31, 2024 and paid during the first quarter of 2025.

Current wording

Investing Activities. Net cash used in investing activities for the six periods ended June 29, 2025 was $32.1 million which was comprised of $19.9 million in capital expenditures primarily for the construction of three restaurants opened during the first half of 2025, as well as residual payments on the two restaurants that opened during the fourth quarter of 2024 and restaurants that were under development as of June 29, 2025, as well as capital expenditures for existing restaurants

Previous wording

Financing Activities. Net cash used in financing activities for the three periods ended March 30, 2025 was $0.3 million primarily comprised of $0.3 million in stock repurchases compared to net cash used in financing activities of $0.2 million for the three months ended March 31, 2024.

Current wording

Financing Activities. Net cash used in financing activities for the six periods ended June 29, 2025 was $2.2 million and was primarily comprised of $0.9 million in stock repurchases and $1.1 million in repayments on long-term debt and financing lease liabilities.