Education
About Us
Working with TipRanks
Follow Us
The ONE Group Hospitality Inc (STKS)
NASDAQ:STKS
Top Page
The ONE Group Hospitality
(NASDAQ:STKS)
Select Model
Select Model
Rating:47Neutral
Price Target:
$2.50
▲(1.21% Upside)
The ONE Group Hospitality's overall stock score reflects significant financial and valuation challenges, with a heavily leveraged balance sheet and negative profitability. Despite positive strategic initiatives and growth potential highlighted in the earnings call, the stock's technical indicators and valuation concerns weigh heavily on its attractiveness.
Positive Factors
Revenue Growth
The 20% revenue growth indicates strong market demand and successful strategic initiatives, which can drive long-term business expansion.
Franchise Expansion
The shift towards a franchise model reduces capital expenditure and operational risk, enhancing scalability and profitability over time.
New CFO Appointment
The new CFO's extensive experience is expected to strengthen financial management and support strategic growth, enhancing long-term stability.
Negative Factors
Heavily Leveraged Balance Sheet
The high leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.
Negative Profitability
Sustained negative profitability can erode shareholder value and hinder reinvestment in the business, affecting long-term viability.
Increased Interest Expense
Rising interest expenses due to high debt levels can strain cash flow, reducing funds available for strategic initiatives and growth.
The ONE Group Hospitality (STKS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$76.46M
Dividend YieldN/A
Average Volume (3M)80.84K
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth96.64%
EPS Growth-292.65%
CountryUS
Employees10,800
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.05
Shares Outstanding30,956,347
10 Day Avg. Volume71,380
30 Day Avg. Volume80,842
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap12.19
Enterprise Value/Revenue1.12
Enterprise Value/Gross Profit3.56
Enterprise Value/Ebitda10.59
Forecast
1Y Price Target
$5.17Price Target Upside109.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
The ONE Group Hospitality Business Overview & Revenue Model
Company DescriptionThe 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 MoneyThe ONE Group generates revenue through multiple streams, primarily from its restaurant and lounge operations, which include food and beverage sales. The company operates both company-owned and managed locations, allowing it to earn direct profits from its establishments while also receiving management fees from franchised or partnered venues. Additionally, The ONE Group has developed a catering and events division, which contributes to its revenue through service contracts for private and corporate events. Strategic partnerships with hotels and casinos further enhance its earnings by providing exclusive dining experiences and amenities, thus attracting a higher volume of guests. Overall, the company's revenue model is diversified across various hospitality sectors, allowing for stability and growth.
The ONE Group Hospitality Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong top line growth, successful integration of acquisitions, and strategic expansion efforts. However, challenges such as decreased comparable sales, increased net loss, and market-specific difficulties, particularly in Las Vegas and the upscale casual segment, were also noted. Despite these challenges, the company remains confident in its strategy and future growth potential.Q2-2025 Updates
Positive Updates
Strong Top Line Growth
The company achieved a 20% increase in top line growth, driven by the successful integration of the Benihana acquisition and strategic initiatives.
Adjusted EBITDA
Adjusted EBITDA was $23.4 million, indicating strong profitability and efficiency in operations.
Positive Same-Store Sales
Benihana and STK reported positive same-store sales, the second and third consecutive quarters for each metric, respectively.
Development Strategy and Expansion
The company opened three new company-owned restaurants and a second franchise Benihana Express location, with plans for 5-7 new venues in 2025.
San Mateo Benihana Success
The new Benihana in San Mateo, California, is the highest performing in the company's history, indicating strong market acceptance of the new prototype.
Franchise Momentum
Franchising is gaining momentum, with expectations for franchise, licensed, and managed locations to represent over 60% of the total footprint.
Balance Sheet Flexibility
The company maintains approximately $50 million in liquidity, providing operational flexibility for future investments.
Successful Integration of Benihana
The integration of Benihana is progressing ahead of schedule, with significant operational synergies already realized.
Negative Updates
Reduction in Comparable Sales
Consolidated comparable sales decreased by 4.1%.
Challenges in Upscale Casual Segment
Traffic in the upscale casual segment remains challenged, requiring targeted marketing and operational adjustments.
Closure of Grill Locations
Five grill locations were closed due to lease renewals or poor real estate quality.
Net Loss Increase
Net loss increased to $10.1 million compared to $7.3 million in the second quarter of 2024.
Interest Expense Rise
Interest expense increased to $10.3 million due to a higher level of outstanding debt.
Market Challenges in Las Vegas
The Las Vegas market faced challenges due to changes in convention schedules and a decline in Canadian and Mexican visitors.
Company Guidance
In the second quarter of 2025, The ONE Group reported a 20% increase in top-line growth, driven primarily by the integration of Benihana and strategic initiatives. Adjusted EBITDA reached $23.4 million, with positive same-store sales at Benihana and positive traffic at STK for the second and third consecutive quarters, respectively. The company also highlighted a solid development strategy, with three new company-owned restaurant openings and the introduction of a second franchise Benihana Express location in Miami. Looking forward, they aim to open 5 to 7 new venues in 2025 and are focused on asset-light growth, targeting over 60% of their total footprint to be franchise licensed and managed locations. Despite a challenging consumer environment, The ONE Group is confident in their strategic priorities, which include driving same-store sales growth, focusing on high-quality relocations, optimizing their grill portfolio, and maintaining balance sheet flexibility with approximately $50 million in liquidity.The ONE Group Hospitality Financial Statement Overview
Summary
The ONE Group Hospitality faces significant financial challenges with a negative net profit margin, high leverage, and negative free cash flow. While there is some revenue growth and improved gross margins, the overall financial health is weak due to high debt levels and poor profitability.Income Statement
The ONE Group Hospitality shows moderate revenue growth with a TTM increase of 4.36%. However, profitability is a concern with a negative net profit margin of -1.91% and declining EBIT margins. The gross profit margin improved to 31.33% in TTM, indicating better cost management, but the overall profitability remains weak.45
Neutral
Balance Sheet
The company's balance sheet is heavily leveraged with a high debt-to-equity ratio of 3.24 in TTM, indicating significant financial risk. The return on equity is negative, reflecting poor profitability. The equity ratio is low, suggesting limited asset backing by equity.40
Negative
Cash Flow
Cash flow analysis reveals challenges, with negative free cash flow and a free cash flow to net income ratio of -0.62 in TTM. Operating cash flow is positive but insufficient to cover net income, indicating cash flow management issues.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 834.36M | 673.34M | 332.77M | 316.64M | 277.18M | 141.94M |
| Gross Profit | 261.38M | 122.75M | 65.79M | 66.58M | 65.18M | 20.88M |
| EBITDA | 87.94M | 40.72M | 34.02M | 28.44M | 38.57M | -3.58M |
| Net Income | -15.96M | -15.82M | 4.72M | 13.53M | 31.35M | -12.82M |
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 | 638.25M | 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 | 196.86M | 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 | 42.35M | 44.19M | 30.78M | 25.25M | 30.97M | 431.00K |
| Investing Cash Flow | -439.94M | -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
Negative
2.47
Price Trends
2.99
Negative
3.41
Negative
3.25
Negative
Market Momentum
-0.12
Negative
34.61
Neutral
25.68
Neutral
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 2.47 is below the 20-day moving average (MA) of 2.70, below the 50-day MA of 2.99, and below the 200-day MA of 3.25, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 34.61 is Neutral, neither overbought nor oversold. The STOCH value of 25.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STKS.
The ONE Group Hospitality Risk Analysis
The ONE Group Hospitality disclosed 29 risk factors in its most recent earnings report. The ONE Group Hospitality reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The ONE Group Hospitality Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | 58.97M | 13.65 | 5.48% | 1.73% | 8.83% | 41.90% | |
55 Neutral | 117.13M | -1.92 | 92.02% | ― | -3.09% | -30.16% | |
47 Neutral | $76.46M | ― | -7.81% | ― | 96.64% | -292.65% | |
41 Neutral | 28.33M | -0.65 | 649.09% | ― | -1.23% | -68.38% | |
41 Neutral | 34.89M | -0.15 | 8599.98% | 158.12% | 0.96% | -57.29% | |
40 Underperform | 84.64M | -1.69 | 49.01% | ― | -12.77% | 52.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
STKS
The ONE Group Hospitality
2.47
-1.11
-31.01%
BDL
Flanigan's Enterprises
31.73
4.69
17.34%
RRGB
Red Robin Gourmet
6.54
2.16
49.32%
NDLS
Noodles & Co
0.61
-0.49
-44.55%
FAT
Fat Brands
1.91
-0.69
-26.54%
THCH
TH International
2.55
-0.65
-20.31%
The ONE Group Hospitality Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
The ONE Group Appoints New CFO Nicole Thaung
Positive
Sep 8, 2025
On September 3, 2025, The ONE Group Hospitality announced the resignation of Tyler Loy as Chief Financial Officer, effective September 26, 2025, and the appointment of Nicole Thaung as his successor, effective September 8, 2025. Ms. Thaung, who has been with Benihana for over 15 years, brings extensive financial expertise and leadership experience, which is expected to be instrumental in realizing the synergies from the Benihana acquisition. Her appointment is seen as a strategic move to strengthen the company’s financial operations and support its growth objectives.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.