ONE Group Hospitality (NASDAQ:STKS) Releases Earnings Results, Misses Estimates By $0.58 EPS

ONE Group Hospitality (NASDAQ:STKS) announced its earnings results on Wednesday. The restaurant operator reported ($0.79) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.58), FiscalAI reports. ONE Group Hospitality had a negative return on equity of 10.49% and a negative net margin of 10.25%. The firm had revenue of $176.96 million for the quarter, compared to analyst estimates of $178.13 million.

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 Down 0.4%

Shares of STKS stock traded down $0.01 on Wednesday, reaching $1.18. 56,419 shares of the stock were exchanged, compared to its average volume of 28,982. The stock has a market cap of $37.24 million, a P/E ratio of -0.31 and a beta of 1.30. The firm has a 50 day moving average of $1.47 and a two-hundred day moving average of $1.80. ONE Group Hospitality has a 1-year low of $1.07 and a 1-year high of $2.65.

Analyst Ratings Changes

STKS has been the subject of a number of research analyst reports. Zacks Research raised shares of ONE Group Hospitality from a “strong sell” rating to a “hold” rating in a research note on Monday, October 5th. Piper Sandler decreased 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 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 research report on Tuesday, August 11th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $4.00.

ONE Group Hospitality Company Profile

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.