The ONE Group Hospitality (STKS) AI Stock Analysis

• Market Cap: $94.25M
• Dividend Yield: N/A
• Average Volume (3M): 262.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: 138.50%
• EPS Growth: -60576.19%
• Country: US
• Employees: 10,800
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Restaurants
• EPS (TTM): 0.05
• Shares Outstanding: 30,902,798
• 10 Day Avg. Volume: 100,749
• 30 Day Avg. Volume: 262,732
• PEG Ratio: <0.01
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -3.30
• Enterprise Value/Market Cap: 9.89
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 3.92
• Enterprise Value/Ebitda: 11.20
• 1Y Price Target: $5.17
• Price Target Upside: 93.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 44 Neutral
• Price Target: $3.00 ▲(12.36% Upside)

The overall stock score of 44 reflects significant financial challenges, including negative profitability and high leverage, which are major concerns. Technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. The earnings call provided some positive strategic insights, but these were offset by financial difficulties.

Positive Factors

Acquisition Impact

The acquisition of Benihana offers new growth opportunities for The One Group Hospitality to capitalize on over time.

Brand Expansion

There are plans to grow sales at existing Benihana locations, with a potential expansion to 400 units offering significant growth potential.

Negative Factors

Economic Challenges

Economic uncertainty remains an overhang to posting solid SSS growth, with modest negative SSS expected in 1Q25.

Valuation Concerns

Current valuation reflects a lack of near- to medium-term SSS growth visibility across all brands, complicated by the financing costs of the acquisition of Benihana.

The ONE Group Hospitality Business Overview & Revenue Model

Company Description

The ONE Group Hospitality, Inc., a hospitality company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. As of December 31, 2021, it owned, operated, managed, or licensed 60 venues, including 23 STKs and 24 Kona Grills in North America, Europe, and the Middle East, as well as 13 F&B venues in seven hotels and casinos in the United States and Europe. The ONE Group Hospitality, Inc. was founded in 2004 and is headquartered in Denver, Colorado.

How the Company Makes Money

The ONE Group Hospitality makes money primarily through its owned and managed restaurant operations. Revenue streams include food and beverage sales at its STK restaurants, which are strategically located in major metropolitan cities and travel destinations worldwide. In addition to direct restaurant sales, the company earns income by providing hospitality management services, which involve overseeing food and beverage operations for third-party venues. This includes consulting services and management fees. The company's revenue is further supported by strategic partnerships and licensing agreements, which allow for brand expansion and increased market presence.

The ONE Group Hospitality Financial Statement Overview

Summary

The ONE Group Hospitality faces significant financial challenges, with a negative net profit margin and high leverage risks. Despite strong gross profit margins, the company struggles with profitability and has a high debt-to-equity ratio. Cash flow generation is effective, but negative free cash flow and high capital expenditures limit financial flexibility.

Income Statement

The company's gross profit margin for TTM is approximately 56.5%, indicating a healthy ability to cover its cost of goods sold. However, the net profit margin is negative due to a net loss, highlighting challenges in achieving profitability. Revenue growth is volatile, with a decline noted in the most recent TTM period compared to the previous year. EBIT and EBITDA margins are low, reflecting modest operational efficiency.

Balance Sheet

The debt-to-equity ratio is high, with total debt significantly exceeding stockholders' equity, indicating potential leverage risks. Return on equity is negative due to net losses, which is a concern for investors. The equity ratio is relatively low, suggesting limited financial flexibility and reliance on debt financing.

Cash Flow

The operating cash flow to net income ratio is strong, indicating effective cash generation from operations despite net losses. Free cash flow is negative, impacting liquidity and financial flexibility. The company has a high level of capital expenditures, which may constrain cash flow further.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	799.48M	673.34M	332.77M	316.64M	277.18M	141.94M
Gross Profit	237.55M	122.75M	65.79M	66.58M	65.18M	20.88M
EBITDA	83.18M	40.72M	34.02M	31.35M	38.57M	6.79M
Net Income	-13.19M	-15.82M	4.72M	13.53M	31.35M	-13.62M
Balance Sheet
Total Assets	935.68M	959.35M	317.25M	291.02M	229.84M	215.57M
Cash, Cash Equivalents and Short-Term Investments	5.16M	28.07M	21.05M	55.12M	23.61M	24.39M
Total Debt	310.02M	641.02M	200.17M	183.63M	132.64M	159.09M
Total Liabilities	742.05M	756.75M	249.88M	222.43M	169.31M	193.59M
Stockholders Equity	23.05M	205.25M	69.18M	69.71M	61.20M	23.18M
Cash Flow
Free Cash Flow	-27.37M	-27.37M	-22.77M	-7.38M	19.50M	-5.36M
Operating Cash Flow	44.19M	44.19M	30.78M	25.25M	30.97M	431.00K
Investing Cash Flow	-441.39M	-441.39M	-53.55M	-32.63M	-11.47M	-5.79M
Financing Cash Flow	404.18M	404.34M	-11.25M	39.10M	-20.27M	17.42M

The ONE Group Hospitality Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STKS, the sentiment is Negative. The current price of 2.67 is below the 20-day moving average (MA) of 3.42, below the 50-day MA of 3.74, and below the 200-day MA of 3.35, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 28.45 is Positive, neither overbought nor oversold. The STOCH value of 17.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STKS.

The ONE Group Hospitality Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDL	75 Outperform	$57.66M	14.24	6.48%	1.67%	9.38%	14.76%
Sector *	67 Neutral	¥265.09B	13.26	6.53%	2.53%	5.21%	-14.31%
RRGB	50 Neutral	$102.16M	―	92.02%	―	-1.68%	-140.83%
NDLS	45 Neutral	$40.66M	―	-978.37%	―	-0.61%	-200.32%
FAT	45 Neutral	$37.73M	―	38.50%	147.32%	0.96%	-57.29%
STKS	44 Neutral	$94.25M	―	-7.81%	―	138.50%	-60576.19%
THCH	40 Neutral	$88.63M	―		―	-14.11%	54.77%

The ONE Group Hospitality Corporate Events

The ONE Group Hospitality Elects New Directors at Meeting

At the 2025 Annual Meeting of Stockholders held on May 20, 2025, The ONE Group Hospitality, Inc. successfully passed all proposals presented. Emanuel Hilario, Scott Ross, and Jonathan Segal were elected as Class III directors for a three-year term. Deloitte & Touche, LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 28, 2025. Additionally, the compensation of the company’s named executive officers was approved on an advisory basis.

The most recent analyst rating on (STKS) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on The ONE Group Hospitality stock, see the STKS Stock Forecast page.