Revenue during the quarter grew 20.49 percent to $18.38 million from $15.25 million in the previous year period. Gross margin for the quarter contracted 152 basis points over the previous year period to 18.85 percent. Operating margin for the quarter stood at negative 13.43 percent as compared to a negative 14.47 percent for the previous year period.

Operating loss for the quarter was $2.47 million, compared with an operating loss of $2.21 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $1.08 million compared with $1.14 million in the prior year period. At the same time, adjusted EBITDA margin contracted 164 basis points in the quarter to 5.86 percent from 7.50 percent in the last year period.

Jonathan Segal, chief executive officer of The ONE Group noted, “As a result of the near-term challenging restaurant landscape and tourism decline in our core markets as well as the unstable political climate, our third quarter results fell short of our expectations. Despite this challenging environment, we believe that the demand for our brand remains strong. Over the long-term, our growth strategy continues to focus on management and license deals, which require a lower capital investment, while producing high margin EBITDA royalty stream.”