ONE Group Hospitality (NASDAQ:STKS) Issues Quarterly Earnings Results, Misses Expectations By $0.54 EPS

ONE Group Hospitality (NASDAQ:STKS – Get Free Report) released its earnings results on Wednesday. The restaurant operator reported ($0.75) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.54), Zacks reports. The business had revenue of $176.96 million during the quarter, compared to analyst estimates of $178.13 million. ONE Group Hospitality had a negative net margin of 10.25% and a negative return on equity of 10.49%.

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 Price Performance

Shares of NASDAQ:STKS opened at $1.18 on Thursday. ONE Group Hospitality has a 1-year low of $1.07 and a 1-year high of $2.65. The business’s 50 day moving average is $1.47 and its 200-day moving average is $1.79.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on STKS shares. Zacks Research upgraded shares of ONE Group Hospitality from a “strong sell” rating to a “hold” rating in a research note on Monday, October 5th. Piper Sandler reduced their price target on shares of ONE Group Hospitality from $5.00 to $4.00 and set a “neutral” rating for the company in a report on Monday, August 10th. Finally, Weiss Ratings raised shares of ONE Group Hospitality from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, August 11th. One equities research 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’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $4.00.

Read Our Latest Stock Analysis on STKS

ONE Group Hospitality Company Profile

(Get Free Report)

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.

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Earnings History for ONE Group Hospitality (NASDAQ:STKS)

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