ONE Group Hospitality (NASDAQ:STKS) Releases Earnings Results

ONE Group Hospitality (NASDAQ:STKS) announced its quarterly earnings data on Wednesday. The restaurant operator reported ($0.75) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($0.54), Zacks reports. The firm had revenue of $176.96 million for the quarter, compared to analyst estimates of $178.13 million. ONE Group Hospitality had a negative return on equity of 10.49% and a negative net margin of 10.25%.

Here are the key takeaways from ONE Group Hospitality’s conference call:

• Traffic improved, but comparable sales remained slightly negative. Consolidated traffic rose 1.8% for a second consecutive quarter, while comparable sales declined 0.4%; management attributed late-quarter weakness partly to September storms and said customers remain cautious and value-conscious.
• Restaurant margins and Adjusted EBITDA increased. Restaurant operating profit margin expanded 190 basis points to 13.2%, helped by cost of sales falling to 19.5%; Adjusted EBITDA rose 5% to $11.1 million despite higher pre-opening costs.
• Cash generation supported debt reduction and a larger buyback authorization. Year-to-date operating cash flow more than doubled to $41.8 million, and debt declined about $6 million; the board also approved a $5 million increase to the share repurchase program. Debt remained substantial at $347.9 million.
• Management is pursuing growth through conversions and Benihana Express. Early sales at recent restaurant conversions were encouraging, and the company cited franchise interest in the smaller Express format; it plans six to eight systemwide openings in 2026 while prioritizing Express development.
• 2026 targets call for $95–$100 million in Adjusted EBITDA and about 1% comparable-sales growth. The outlook also includes $800–$810 million in revenue and $30–$34 million in capital expenditures net of landlord allowances; the quarter still posted a $16.1 million net loss attributable to the company.

ONE Group Hospitality Stock Performance

Shares of STKS stock opened at $1.20 on Thursday. The stock’s fifty day moving average is $1.47 and its 200-day moving average is $1.79. The stock has a market capitalization of $38.06 million, a PE ratio of -0.32 and a beta of 1.30. ONE Group Hospitality has a 52 week low of $1.07 and a 52 week high of $2.65.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Zacks Research raised shares of ONE Group Hospitality from a “strong sell” rating to a “hold” rating in a report on Monday, October 5th. Weiss Ratings upgraded shares of ONE Group Hospitality from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, August 11th. Finally, Piper Sandler lowered their target price on shares of ONE Group Hospitality from $5.00 to $4.00 and set a “neutral” rating on the stock in a research note on Monday, August 10th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $4.00.

About ONE Group Hospitality

ONE Group Hospitality, Inc is a hospitality company that develops, owns, operates, manages and licenses upscale and polished-casual restaurants and lounges. Its concepts emphasize high-energy dining, premium food and beverage offerings, and entertainment-oriented guest experiences.

The company’s principal brands are STK Steakhouse and Kona Grill. STK combines the traditional steakhouse with a contemporary lounge atmosphere, serving premium steaks, seafood, cocktails and other upscale menu items.