Zacks Research Downgrades ONE Group Hospitality (NASDAQ:STKS) to Strong Sell

ONE Group Hospitality (NASDAQ:STKS) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Thursday,Zacks.com reports.

Separately, Weiss Ratings reiterated a “sell (e+)” rating on shares of ONE Group Hospitality in a research report on Friday, July 10th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average target price of $4.00.

ONE Group Hospitality Stock Performance

STKS opened at $1.68 on Thursday. The company has a market cap of $53.02 million, a price-to-earnings ratio of -0.42 and a beta of 1.36. ONE Group Hospitality has a one year low of $1.65 and a one year high of $3.38. The business’s fifty day moving average is $1.86 and its two-hundred day moving average is $1.92.

ONE Group Hospitality (NASDAQ:STKS) last announced its quarterly earnings results on Wednesday, May 6th. The restaurant operator reported ($0.20) earnings per share for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.32). The firm had revenue of $212.82 million during the quarter, compared to analysts’ expectations of $218.55 million. ONE Group Hospitality had a negative net margin of 11.15% and a negative return on equity of 6.77%. On average, analysts predict that ONE Group Hospitality will post -0.69 EPS for the current fiscal year.

Hedge Funds Weigh In On ONE Group Hospitality

Several institutional investors and hedge funds have recently modified their holdings of the company. Bank of America Corp DE boosted its position in ONE Group Hospitality by 20.8% during the third quarter. Bank of America Corp DE now owns 55,634 shares of the restaurant operator’s stock worth $165,000 after acquiring an additional 9,594 shares during the last quarter. Arrowstreet Capital Limited Partnership acquired a new position in ONE Group Hospitality in the 3rd quarter valued at $170,000. Dimensional Fund Advisors LP raised its holdings 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 acquiring an additional 18,435 shares during the last quarter. Vanguard Group Inc. raised its holdings in ONE Group Hospitality by 1.2% in the 3rd quarter. Vanguard Group Inc. now owns 1,227,751 shares of the restaurant operator’s stock valued at $3,634,000 after acquiring an additional 14,765 shares during the last quarter. Finally, Jane Street Group LLC lifted its stake in shares of ONE Group Hospitality by 423.5% during the 2nd quarter. Jane Street Group LLC now owns 101,174 shares of the restaurant operator’s stock worth $410,000 after purchasing an additional 81,848 shares during the period. Hedge funds and other institutional investors own 29.14% of the company’s stock.

Key Headlines Impacting ONE Group Hospitality

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

• Positive Sentiment: Sidoti raised its Q1 2027 EPS forecast to $0.06 from a projected loss of $0.04 and increased its Q3 2027 forecast to a loss of $0.25 from $0.27, indicating some improvement in selected periods.
• Neutral Sentiment: Noble Financial expects The ONE Group Hospitality to report losses of $0.52 per share in Q3 2026 and $0.12 per share in Q4 2026, while forecasting a $0.59-per-share loss for full-year 2027. These estimates provide additional visibility but remain materially negative.
• Neutral Sentiment: The company’s Q2 2026 earnings-call transcript is available for investors seeking management commentary on operating trends, restaurant demand and the path toward profitability. The ONE Group Hospitality Q2 2026 Earnings Call Transcript
• Negative Sentiment: Sidoti cut its FY2026 EPS estimate to a loss of $0.95 from $0.69, reduced its Q3 2026 estimate to a loss of $0.51 from $0.44, lowered Q2 2027 to a loss of $0.08 from projected earnings of $0.09, and trimmed Q4 2026 to $0.06 from $0.09.
• Negative Sentiment: Noble Financial also lowered its Q3 2026 forecast to a loss of $0.52 from $0.49 and reduced its FY2027 estimate to a loss of $0.59 from $0.56. The concentration of downward revisions reinforces concerns about near-term profitability.
• Negative Sentiment: The company’s latest reported quarter showed a $0.20-per-share loss that missed expectations by $0.32, alongside revenue below estimates. Persistent losses and negative margins add to the bearish reaction to the estimate cuts.

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.