The ONE Group Hospitality (STKS) AI Stock Analysis

• Market Cap: $88.23M
• Dividend Yield: N/A
• Average Volume (3M): 91.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 96.64%
• EPS Growth: -292.65%
• Country: US
• Employees: 10,800
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Restaurants
• EPS (TTM): 0.05
• Shares Outstanding: 30,956,347
• 10 Day Avg. Volume: 63,471
• 30 Day Avg. Volume: 91,216
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 10.56
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 3.56
• Enterprise Value/Ebitda: 10.59
• 1Y Price Target: $4.50
• Price Target Upside: 63.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 39 Underperform
• Price Target: $2.50 ▼(-9.42% Downside)

The ONE Group Hospitality's stock score is primarily impacted by its weak financial performance and negative valuation metrics. Despite some positive strategic initiatives and growth potential highlighted in the earnings call, the company's high leverage, negative profitability, and bearish technical indicators weigh heavily on its overall score.

Positive Factors

Acquisition Impact

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

Growth Potential

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

Negative Factors

Economic Uncertainty

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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 2.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.76 is below the 20-day moving average (MA) of 2.80, below the 50-day MA of 3.50, and below the 200-day MA of 3.29, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 38.20 is Neutral, neither overbought nor oversold. The STOCH value of 61.28 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDL	64 Neutral	$55.88M	12.93	6.88%	1.86%	8.83%	41.90%
Sector *	61 Neutral	$17.78B	13.97	-5.49%	3.03%	1.50%	-15.71%
RRGB	55 Neutral	$119.28M	―	92.02%	―	-3.09%	-30.16%
THCH	41 Neutral	$85.64M	―		―	-12.77%	52.05%
STKS	39 Underperform	$88.23M	―	-7.81%	―	96.64%	-292.65%
NDLS	39 Underperform	$33.28M	―	-978.37%	―	-1.23%	-68.38%
FAT	39 Underperform	$33.46M	―	38.50%	167.78%	0.96%	-57.29%

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.