The ONE Group Announces Preliminary Fourth Quarter and Full Year 2018 Sales Results

NEW YORK–()–The ONE Group Hospitality, Inc. (NASDAQ: STKS) today announced
preliminary sales for the fourth quarter and full year ended December
31, 2018. The Company also announced its participation at the 21st
Annual ICR Conference next week.

Preliminary sales highlights for the fourth quarter ended December
31, 2018 are as follows:

  • Total GAAP revenues are expected to be approximately $25
    million, an approximate 16% increase from $21.5 million for the same
    quarter last year; and,
  • Domestic comparable sales* at owned and managed STK restaurants
    rose 15.0% from the prior year period, consisting of a 14.9% increase
    in domestic owned restaurants and a 15.6% increase in domestic managed
    restaurants.

Preliminary sales highlights for the full year ended December 31,
2018 are as follows:

  • Total GAAP revenues are expected to be approximately $85
    million, an approximate 7% increase from $79.7 million for 2017. On
    November 12, 2018, the Company had reiterated previous guidance of
    2018 revenues between $80 million and $85 million;
  • Domestic comparable sales* at owned and managed STK restaurants
    rose 9.4%, consisting of a 9.7% increase in domestic owned restaurants
    and an 8.8% increase in domestic managed restaurants, compared to
    2017. On November 12, 2018 the Company had guided to domestic
    comparable store sales growth of about 7%, which was up from 3% to 4%
    originally; and,
  • US STK brand restaurant sales rose to a record $101 million.

*Comparable sales or same store sales (“SSS”) represents total US
food and beverage sales at owned and managed units opened for at least a
full 18-month period. This metric includes total revenue from our owned
and managed STK locations. Revenues from locations where we do not
directly control the event sales force (The W Hotel, Westwood, CA and
our locations in Europe) are excluded from this metric.

Emanuel “Manny” Hilario, President and CEO of The ONE Group stated,
“Preliminary revenues and comparable sales growth for 2018 reflect our
brand strength, high level of execution, focused marketing, and robust
event business during the recent holiday season. We are pleased that the
important new initiatives launched in 2018 such as the introduction of
our national happy hour program and focus on promoting our holiday
programs real time on social media have led to a healthy and sustainable
improvement in our performance.”

Mr. Hilario added, “Incorporating vibe dining into every aspect of our
restaurant experience is what truly sets us apart and we are grateful to
all of our worldwide team members for making the STK brand so highly
differentiated.”

Mr. Hilario concluded, “Looking ahead, we continue to see strong
interest in STK and in our hospitality program globally, and our
worldwide pipeline for 2019 reflects these opportunities for asset-light
business development.”

Preliminary results remain subject to the completion of normal quarter
and year-end accounting procedures and adjustments and are subject to
change. The Company expects to release financial and operating results
for its fourth quarter and full year ended December 31, 2018 in March
2019.

21st Annual ICR Conference Participation

Mr. Hilario and Linda Siluk, Interim Chief Financial Officer, will
present at the 21st Annual ICR Conference at the Grande Lakes Hotel &
Resort in Orlando, FL at 1:30 PM Eastern Time on January 15, 2019.

The webcast can be accessed from the Investor Relations tab of the
Company’s website at www.togrp.com
under “News / Events” or directly through the ICR Conference website at www.icrconference.com.

About The ONE Group

The ONE Group (NASDAQ: STKS) is a global hospitality company that
develops and operates upscale, high-energy restaurants and lounges and
provides hospitality management services for hotels, casinos and other
high-end venues nationally and internationally. The ONE Group’s primary
restaurant brand is STK, a modern twist on the American steakhouse
concept with locations in major metropolitan cities throughout the U.S.,
Europe, Mexico, and the Middle East. ONE Hospitality, The ONE Group’s
food and beverage hospitality services business, provides the
development, management and operations for premier restaurants and
turn-key food and beverage services in high-end hotels and casinos.
Additional information about The ONE Group can be found at www.togrp.com.

Cautionary Statement on Forward-Looking Statements

This press release includes “forward-looking statements” within the
meaning of the “safe harbor” provisions of the United States Private
Securities Litigation Reform Act of 1995. Forward-looking statements may
be identified by the use of words such as “anticipate”, “believe”,
“expect”, “estimate”, “plan”, “outlook”, and “project” and other similar
expressions that predict or indicate future events or trends or that are
not statements of historical matters. 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 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 our key employees; (2) 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;
(3) in
the case of our strategic review of operations, 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; (4) changes in applicable
laws or regulations; (5) the possibility that the Company may be
adversely affected by other economic, business, and/or competitive
factors; and (6) other risks and uncertainties indicated from time to
time in our filings with the SEC, including our Annual Report on Form
10-K filed for the year ended December 31, 2017.

Investors are referred to the most recent reports filed with the SEC
by The ONE Group Hospitality, Inc. Investors are cautioned not to place
undue reliance upon any forward-looking statements, which speak only as
of the date made, and we undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events, or otherwise.

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