ONE Group Hospitality (NASDAQ:STKS) Issues Earnings Results

ONE Group Hospitality (NASDAQ:STKS) issued its earnings results on Wednesday. The restaurant operator reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.12 by ($0.32), FiscalAI reports. ONE Group Hospitality had a negative net margin of 11.15% and a negative return on equity of 8.53%. The business 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 Trading Up 1.6%

Shares of STKS stock traded up $0.03 on Friday, reaching $1.94. The company had a trading volume of 824 shares, compared to its average volume of 36,682. The stock has a market cap of $60.88 million, a PE ratio of -0.49, a PEG ratio of 0.24 and a beta of 1.29. The company has a 50-day moving average of $1.82 and a 200-day moving average of $1.98. ONE Group Hospitality has a 12 month low of $1.65 and a 12 month high of $5.26.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Qube Research & Technologies Ltd acquired a new stake in ONE Group Hospitality in the second quarter worth $132,000. Bank of America Corp DE grew its holdings in shares of ONE Group Hospitality by 18.7% in the 4th quarter. Bank of America Corp DE now owns 34,782 shares of the restaurant operator’s stock valued at $101,000 after buying an additional 5,477 shares during the period. Vanguard Group Inc. grew its holdings in shares of ONE Group Hospitality by 1.2% in the 3rd quarter. Vanguard Group Inc. now owns 1,227,751 shares of the restaurant operator’s stock valued at $3,634,000 after buying an additional 14,765 shares during the period. CastleKnight Management LP increased its position in shares of ONE Group Hospitality by 4.7% in the 4th quarter. CastleKnight Management LP now owns 1,286,991 shares of the restaurant operator’s stock valued at $2,252,000 after buying an additional 58,015 shares in the last quarter. Finally, Jane Street Group LLC raised its stake in ONE Group Hospitality by 423.5% during the 2nd quarter. Jane Street Group LLC now owns 101,174 shares of the restaurant operator’s stock worth $410,000 after buying an additional 81,848 shares during the period. Institutional investors and hedge funds own 29.14% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on STKS shares. Lake Street Capital cut 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 report on Friday, January 16th. Zacks Research cut shares of ONE Group Hospitality from a “hold” rating to a “strong sell” rating in a research report on Wednesday. Finally, 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, one has issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $4.50.

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.