| Market Capitalization (Millions $) |
- |
| Shares
Outstanding (Millions) |
12 |
| Employees |
2,300 |
| Revenues (TTM) (Millions $) |
157 |
| Net Income (TTM) (Millions $) |
-32 |
| Cash Flow (TTM) (Millions $) |
-2 |
| Capital Exp. (TTM) (Millions $) |
2 |
Business Description
Kona Grill, Inc. is a restaurant company that operates 34 restaurants in 20 states across the United States and Puerto Rico. They also have two international restaurants operating under franchise agreements. Kona Grill offers freshly prepared food, attentive service, and an upscale contemporary ambiance that creates an exceptional, yet affordable dining experience. Their menu features contemporary American favorites, award-winning sushi, and an extensive selection of alcoholic beverages. The diverse menu is complemented by a full-service bar offering a broad assortment of wines, craft cocktails, and beers.
The restaurants seat an average of 290 customers and are comprised of multiple dining areas that incorporate modern design elements to create an upscale ambiance that reinforces their high standards of food and service. The main dining area, full-service bar, indoor/outdoor patio, and sushi bar provide a choice of atmospheres and a variety of environments designed to attract new customers and encourage repeat visits from regular customers. The restaurants are generally located in high-activity areas such as retail centers, shopping malls, and lifestyle centers that are situated near commercial office space and residential housing to attract customers throughout the day.
Kona Grill significantly grew the number of restaurants from 2013 to 2016 and doubled the size of the company from 23 restaurants in 2012 to 46 restaurants by 2017. However, the company has currently discontinued developing new restaurants to give its existing base of restaurants the opportunity to mature, conserve cash resources, and has closed certain unprofitable restaurants. The company is evaluating strategic alternatives, including the sale of the company, the potential sale of the companyes assets through a Chapter 11 filing, refinancing, or other alternatives, including the closure of additional restaurants.
In March 2019, Kona Grill announced that their Board of Directors, working together with the management team, engaged Piper Jaffray as their financial advisor to assist with the evaluation of strategic alternatives, including the possible sale of their business. There can be no assurance that the process that the company is undertaking will be successful. Additionally, the company is in discussions with their secured lenders in an effort to pursue various strategic alternatives. The company can give no assurance that they will successfully execute any strategic alternatives they are currently pursuing or any others, and their ability to do so could be adversely affected by numerous factors, including changes in the economic or business environment, financial market volatility, the performance of the business, and the terms and conditions of the credit facility.
It is possible that even a successful implementation of one of the strategic alternatives that the company is pursuing will require them to make a filing for protection under Chapter 11 of the U.S. Bankruptcy Code. Kona Grill seeking relief under the U.S. Bankruptcy Code, whether or not such relief leads to a quick emergence from Chapter 11, could materially adversely affect the relationships between the company and its existing and potential customers, employees, suppliers, and others.
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