The following segment was excerpted from this fund letter.
One Group Hospitality Inc. (STKS)
This restaurant owner and operator of the "STK" steakhouse chain had a busy third quarter and is worth revisiting. The company made a transformational acquisition by acquiring 24 "Kona Grill" stores out of bankruptcy for $36M in total consideration. This was a surprise, and I did significant diligence on the Kona acquisition to become comfortable with the changing investment thesis.
Kona Grill is an interesting case study. In 2015, the market cap of Kona was greater than $300 million. The