ONE Group Hospitality (NASDAQ:STKS) Announces Earnings Results

ONE Group Hospitality (NASDAQ:STKS) announced its quarterly earnings results on Friday. The restaurant operator reported ($0.20) earnings per share for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.46), Zacks reports. The company had revenue of $207.01 million during the quarter, compared to analyst estimates of $210.28 million. ONE Group Hospitality had a negative net margin of 11.45% and a negative return on equity of 460.16%.

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

• Management is guiding fiscal 2026 to $840–$855M in GAAP revenue with 1%–3% comparable sales growth and $100–$110M Adjusted EBITDA, citing sequential comp improvement across all brands as evidence of an inflection in performance.
• The company is executing a capital-efficient portfolio strategy—closing underperforming Grille concepts and converting selected RA/Kona sites to Benihana/STK—highlighted by a Scottsdale conversion that cost ~$1M and is running at a ~$7M annual sales run rate (~4x sales uplift).
• Operational and supply actions are improving margin predictability, including a beef tenderloin pricing contract through September 2026 and integration synergies that lowered company-owned restaurant cost of sales ~80 bps to 19.6%.
• Near-term financial pressure: Q4 produced a net loss (attributable loss of $6.4M and net loss to common of $15.3M) driven by a $7.2M non-cash impairment, cash on hand was ~$4.7M at quarter end, and adjusted EBITDA declined ~9.5% year-over-year, prompting tighter capex and cash-conservation measures.

ONE Group Hospitality Stock Performance

NASDAQ:STKS opened at $1.72 on Monday. ONE Group Hospitality has a 1-year low of $1.70 and a 1-year high of $5.26. The stock has a market cap of $53.49 million, a P/E ratio of -0.43, a PEG ratio of 0.20 and a beta of 1.62. The company has a debt-to-equity ratio of 16.52, a current ratio of 0.35 and a quick ratio of 0.29. The firm has a 50-day moving average of $2.12 and a two-hundred day moving average of $2.20.

Key Stories Impacting ONE Group Hospitality

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

• Positive Sentiment: Management set first?quarter 2026 revenue guidance of $217M–$221M, above Street expectations, and highlighted an accelerating pace of portfolio conversions that should drive near?term revenue growth. ONE Group targets $840M–$855M revenue in 2026 as portfolio conversions accelerate
• Neutral Sentiment: Full?year 2026 revenue guidance of $840M–$855M is essentially in line but slightly below consensus (~$855.6M), producing mixed implications: growth is forecast, but the midpoint is a touch shy of Street hopes. ONE Group targets $840M–$855M revenue in 2026 as portfolio conversions accelerate
• Neutral Sentiment: The company noted a fiscal?calendar change (four 13?week quarters) that created timing differences in 2025 results—important for quarter?to?quarter comparisons but not a fundamental operating issue. The ONE Group Reports Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Q4 results showed a sizable EPS miss — reported ($0.49) vs. consensus roughly $0.26 — and revenue of $207.0M slightly below estimates (~$210.3M). The earnings shortfall and negative margins drove investor concern. Earnings release and call
• Negative Sentiment: Analyst coverage and summaries flagged a Q4 loss vs. expectations (Zacks noted a $0.20 loss vs. a $0.26 estimate in one summary), reinforcing downside pressure after the print. The ONE Group Reports Q4 Loss (Zacks)

Institutional Investors Weigh In On ONE Group Hospitality

Several hedge funds and other institutional investors have recently bought and sold shares of the business. 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 last quarter. Squarepoint Ops LLC bought a new stake in ONE Group Hospitality in the 3rd quarter valued at about $97,000. Bank of America Corp DE boosted its stake in ONE Group Hospitality by 18.7% during the 4th quarter. Bank of America Corp DE now owns 34,782 shares of the restaurant operator’s stock valued at $101,000 after purchasing an additional 5,477 shares during the period. Qube Research & Technologies Ltd acquired a new position in ONE Group Hospitality during the 2nd quarter valued at about $132,000. Finally, Arrowstreet Capital Limited Partnership bought a new position in ONE Group Hospitality in the 3rd quarter worth about $170,000. 29.14% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on STKS shares. Lake Street Capital lowered their price target on 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. Weiss Ratings reissued a “sell (d-)” rating on shares of ONE Group Hospitality in a research report on Thursday, January 22nd. Finally, Zacks Research raised shares of ONE Group Hospitality from a “strong sell” rating to a “hold” rating in a research report on Thursday, January 1st. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $4.67.

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.