ONE Group Hospitality (NASDAQ:STKS) Issues Earnings Results
by Doug Wharley · The Cerbat GemONE Group Hospitality (NASDAQ:STKS – Get Free Report) announced its quarterly earnings results on Wednesday. The restaurant operator reported ($0.20) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.32), FiscalAI reports. ONE Group Hospitality had a negative return on equity of 57.00% and a negative net margin of 11.45%.The firm had revenue of $212.82 million during the quarter, compared to the consensus estimate of $218.55 million.
Here are the key takeaways from ONE Group Hospitality’s conference call:
- Strong operational and margin performance — Total GAAP revenues were $212.8M, Adjusted EBITDA rose 12.1% to $28.8M, and Restaurant Operating Profit margins expanded by 100 basis points to 19%, driven by a 140 bps reduction in food & beverage costs.
- Comparable-sales mixed but improving — Consolidated comps were -0.3% for Q1 with STK +1.4% and Benihana flat, but management reports sequential improvement and positive comps and transactions early in Q2, with strong bookings for holidays like Mother’s Day.
- Portfolio optimization and conversions are accretive — The company is converting underperforming Grill locations to STK/Benihana (5 conversions underway, reopenings by end-2026) and cites a Scottsdale conversion that added ~ $4M of annual sales on a ~$1M investment (~4x sales ROI).
- Capital discipline and balance-sheet focus — Capex (net) fell ~22% to $10M, revolver balance was reduced to zero with $33.7M available, $9M of debt was repaid in the quarter, and management expects free cash flow generation and continued debt reduction in 2026.
- Higher operating expenses and wider tax range could pressure EPS — Adjusted G&A rose (to $13.9M ex-stock comp) due to salary, audit, IT/AI and marketing investments; guidance widened the effective tax rate to ~10%–20% and net loss to common shareholders was $0.20/sh for the quarter.
ONE Group Hospitality Price Performance
NASDAQ:STKS traded up $0.03 during mid-day trading on Wednesday, hitting $1.88. 48,967 shares of the company’s stock were exchanged, compared to its average volume of 34,783. ONE Group Hospitality has a one year low of $1.65 and a one year high of $5.26. The business has a fifty day moving average price of $1.83 and a 200 day moving average price of $1.99. The company has a market cap of $58.99 million, a PE ratio of -0.47, a P/E/G ratio of 0.24 and a beta of 1.29.
Institutional Inflows and Outflows
Several large investors have recently bought and sold shares of the company. CastleKnight Management LP raised its holdings in ONE Group Hospitality by 4.7% in the fourth quarter. CastleKnight Management LP now owns 1,286,991 shares of the restaurant operator’s stock worth $2,252,000 after buying an additional 58,015 shares during the last quarter. Bank of America Corp DE raised its holdings in ONE Group Hospitality by 20.8% in the third quarter. Bank of America Corp DE now owns 55,634 shares of the restaurant operator’s stock worth $165,000 after buying an additional 9,594 shares during the last quarter. Squarepoint Ops LLC purchased a new position in ONE Group Hospitality in the third quarter worth about $97,000. Arrowstreet Capital Limited Partnership purchased a new position in ONE Group Hospitality in the third quarter worth about $170,000. Finally, Dimensional Fund Advisors LP raised its holdings in ONE Group Hospitality by 35.2% in the third quarter. Dimensional Fund Advisors LP now owns 70,839 shares of the restaurant operator’s stock worth $210,000 after buying an additional 18,435 shares during the last quarter. 29.14% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In
Several equities research analysts recently commented on the stock. Lake Street Capital dropped their price objective on shares of ONE Group Hospitality from $5.00 to $4.00 and set a “buy” rating on the stock in a research note on Friday, January 16th. Weiss Ratings reissued a “sell (d-)” rating on shares of ONE Group Hospitality in a research note on Thursday, January 22nd. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $4.50.
View Our Latest Stock Analysis on ONE Group Hospitality
ONE Group Hospitality Company Profile
ONE Group Hospitality Inc is a full-service hospitality company primarily engaged in the development, ownership and operation of upscale restaurant and lounge concepts. The company’s flagship brand, STK, combines a modern steakhouse menu with a high-energy lounge atmosphere, offering signature cuts of beef, fresh seafood, sushi selections, craft cocktails and an extensive wine program. ONE Group’s concept emphasizes a seamless blend of fine dining and nightlife, catering to guests seeking both culinary excellence and an immersive social experience.
Headquartered in El Segundo, California, ONE Group deploys a mixed model of company-owned and franchised locations across multiple markets.