ONE Group Hospitality (NASDAQ:STKS) Posts Earnings Results

ONE Group Hospitality (NASDAQ:STKS) issued its quarterly earnings results on Wednesday. The restaurant operator reported ($0.38) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.08 by ($0.46), FiscalAI reports. ONE Group Hospitality had a negative return on equity of 6.77% and a negative net margin of 11.15%.The business had revenue of $200.48 million during the quarter, compared to the consensus estimate of $204.66 million.

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

• Restaurant-level margins expanded 110 basis points to 16.4%, supported by lower food costs, supply-chain initiatives, menu optimization, and improved labor scheduling. Operating income rose to $6.6 million from $0.7 million a year ago.
• Operating cash flow nearly tripled to $32 million in the first six months, while net capital expenditures fell 38%; the company repaid more than $6 million of debt and expects continued free cash flow generation and debt reduction.
• Comparable sales increased 0.9%, with positive transaction growth across all segments and U.S. STK sales up 3.2%, but total revenue declined 3.3% to $200.5 million due largely to Grill portfolio closures and the delayed STK New York relocation.
• Adjusted EBITDA fell 9.7% to $21.1 million, missing the company’s prior guidance, as higher marketing spending tied to the World Cup, elevated corporate expenses, and the delayed New York opening offset operational improvements.
• Management is emphasizing capital-light expansion, including six to 10 planned 2026 openings and growth of the small-footprint Benihana Express concept, which management says can generate more than $1 million in annual revenue with attractive franchise economics.

ONE Group Hospitality Trading Up 1.7%

NASDAQ STKS traded up $0.03 on Wednesday, hitting $1.78. 31,153 shares of the company’s stock traded hands, compared to its average volume of 15,024. ONE Group Hospitality has a 1-year low of $1.65 and a 1-year high of $3.38. The firm has a market capitalization of $56.18 million, a PE ratio of -0.44 and a beta of 1.36. The firm’s 50-day moving average price is $1.88 and its two-hundred day moving average price is $1.93.

Analysts Set New Price Targets

STKS has been the topic of a number of research reports. Weiss Ratings restated a “sell (e+)” rating on shares of ONE Group Hospitality in a research note on Friday, July 10th. Zacks Research upgraded shares of ONE Group Hospitality from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 7th. One equities research 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. Based on data from MarketBeat.com, ONE Group Hospitality has an average rating of “Hold” and a consensus price target of $4.50.

Hedge Funds Weigh In On ONE Group Hospitality

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Jane Street Group LLC boosted its holdings in ONE Group Hospitality by 423.5% in the 2nd quarter. Jane Street Group LLC now owns 101,174 shares of the restaurant operator’s stock valued at $410,000 after purchasing an additional 81,848 shares during the last quarter. CastleKnight Management LP increased its holdings in ONE Group Hospitality by 4.7% during the 4th quarter. CastleKnight Management LP now owns 1,286,991 shares of the restaurant operator’s stock worth $2,252,000 after purchasing an additional 58,015 shares during the period. Arrowstreet Capital Limited Partnership acquired a new stake in ONE Group Hospitality in the third quarter valued at approximately $170,000. Squarepoint Ops LLC acquired a new position in shares of ONE Group Hospitality during the third quarter worth $97,000. Finally, Qube Research & Technologies Ltd purchased a new position in shares of ONE Group Hospitality in the 2nd quarter valued at about $132,000. 29.14% of the stock is owned by hedge funds and other institutional investors.

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.