ONE Group Hospitality (NASDAQ:STKS) Issues Quarterly Earnings Results

ONE Group Hospitality (NASDAQ:STKS) released its earnings results on Wednesday. The restaurant operator reported ($0.20) earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.32), FiscalAI reports. ONE Group Hospitality had a negative net margin of 11.45% and a negative return on equity of 57.00%. The business had revenue of $212.82 million for 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 Stock Performance

Shares of ONE Group Hospitality stock traded up $0.03 during trading on Thursday, hitting $1.91. 30,432 shares of the stock were exchanged, compared to its average volume of 36,967. The stock’s fifty day moving average is $1.83 and its 200 day moving average is $1.99. The stock has a market cap of $59.94 million, a PE ratio of -0.47, a P/E/G ratio of 0.24 and a beta of 1.29. ONE Group Hospitality has a 12 month low of $1.65 and a 12 month high of $5.26.

Key Stories Impacting ONE Group Hospitality

Here are the key news stories impacting ONE Group Hospitality this week:

• Positive Sentiment: Company reported a 30% increase in Q2 operating income tied to expansion efforts, suggesting improving operating leverage and margin recovery that could underpin earnings upside if the trend continues. The ONE Group Q2 Operating Income Soars 30% Amid Expansion
• Neutral Sentiment: Management issued full‑year 2026 revenue guidance of $840M–$855M, which sits close to consensus and signals the company expects continued top‑line recovery for the year even if near‑term quarters look mixed. The ONE Group projects Q2 2026 revenue of $202M-$206M while targeting $840M-$855M for fiscal 2026
• Negative Sentiment: Q2 revenue guidance of $202M–$206M misses consensus (about $213.8M), flagging a near‑term top‑line shortfall that could pressure shares if the company cannot demonstrate faster sales recovery. The ONE Group projects Q2 2026 revenue of $202M-$206M while targeting $840M-$855M for fiscal 2026
• Negative Sentiment: Q1 results showed a $0.20 loss per share versus expectations of $0.12 profit and revenue of $212.82M versus estimates near $218.6M — a clear earnings and sales miss that explains part of the negative sentiment around the name. The ONE Group Hospitality, Inc. (STKS) Reports Q1 Loss, Lags Revenue Estimates
• Negative Sentiment: Analyst adjustments: Sidoti trimmed near‑term EPS estimates (Q3 2026 and Q2 2027 cuts), signaling reduced sell‑side confidence in the pace of margin and sales recovery. (Research note summarized in company coverage.)

Hedge Funds Weigh In On ONE Group Hospitality

Several institutional investors have recently modified their holdings of the company. Squarepoint Ops LLC bought a new position in ONE Group Hospitality in the 3rd quarter valued at about $97,000. Bank of America Corp DE grew its position in ONE Group Hospitality by 20.8% in the 3rd quarter. Bank of America Corp DE now owns 55,634 shares of the restaurant operator’s stock valued at $165,000 after buying an additional 9,594 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new position in ONE Group Hospitality in the 3rd quarter valued at about $170,000. Dimensional Fund Advisors LP grew its position in ONE Group Hospitality by 35.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 70,839 shares of the restaurant operator’s stock valued at $210,000 after buying an additional 18,435 shares in the last quarter. Finally, Group One Trading LLC grew its position in ONE Group Hospitality by 18,965.0% in the 3rd quarter. Group One Trading LLC now owns 19,065 shares of the restaurant operator’s stock valued at $56,000 after buying an additional 18,965 shares in the last quarter. Institutional investors own 29.14% of the company’s stock.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of ONE Group Hospitality in a research report on Thursday, January 22nd. Lake Street Capital lowered their price target on shares of ONE Group Hospitality from $5.00 to $4.00 and set a “buy” rating for the company in a research report on Friday, January 16th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, ONE Group Hospitality presently has a consensus rating of “Hold” 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.