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

ONE Group Hospitality (NASDAQ:STKS) announced its 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. The firm had revenue of $200.48 million for the quarter, compared to analyst estimates of $204.66 million. ONE Group Hospitality had a negative net margin of 11.15% and a negative return on equity of 6.77%.

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 Price Performance

STKS traded up $0.03 on Wednesday, reaching $1.78. 31,153 shares of the company traded hands, compared to its average volume of 15,024. The stock’s 50 day moving average price is $1.88 and its 200-day moving average price is $1.93. ONE Group Hospitality has a 52-week low of $1.65 and a 52-week high of $3.38. The company has a market cap of $56.18 million, a price-to-earnings ratio of -0.44 and a beta of 1.36.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on STKS. Zacks Research upgraded ONE Group Hospitality from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 7th. Weiss Ratings reissued a “sell (e+)” rating on shares of ONE Group Hospitality in a research note on Friday, July 10th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, ONE Group Hospitality presently has an average rating of “Hold” and an average price target of $4.50.

Institutional Investors Weigh In On ONE Group Hospitality

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in STKS. Group One Trading LLC boosted its stake in shares of ONE Group Hospitality by 18,965.0% during 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 during the period. Qube Research & Technologies Ltd acquired a new position in shares of ONE Group Hospitality in the second quarter worth $132,000. Squarepoint Ops LLC acquired a new position in shares of ONE Group Hospitality in the third quarter worth $97,000. Bank of America Corp DE increased its stake in shares of ONE Group Hospitality by 18.7% in the fourth quarter. Bank of America Corp DE now owns 34,782 shares of the restaurant operator’s stock worth $101,000 after acquiring an additional 5,477 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in shares of ONE Group Hospitality during the third quarter worth $170,000. Hedge funds and other institutional investors own 29.14% of the company’s stock.

About ONE Group Hospitality

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.