The ONE Group Hospitality (STKS) AI Stock Analysis

• Market Cap: $58.48M
• Dividend Yield: N/A
• Average Volume (3M): 67.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: 51.57%
• EPS Growth: -367.14%
• Country: US
• Employees: 10,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.51
• Shares Outstanding: 31,104,780
• 10 Day Avg. Volume: 53,553
• 30 Day Avg. Volume: 67,888
• 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: 15.24
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 6.85
• Enterprise Value/Ebitda: 11.24
• 1Y Price Target: $5.00
• Price Target Upside: 151.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): $822.30M

• Rating: 38 Underperform
• Price Target: $1.50 ▼(-24.62% Downside)

The overall stock score is heavily influenced by the company's poor financial performance and negative technical indicators. The lack of profitability and high leverage are significant concerns. While there are some positive developments from the earnings call, they are overshadowed by the current financial instability and bearish market sentiment.

Positive Factors

Loyalty Program Growth

The growth in the loyalty program indicates strong customer retention and engagement, which can lead to sustained revenue growth and brand loyalty.

Successful Restaurant Redesign

The success of the redesigned restaurant format suggests potential for increased profitability and customer satisfaction across new and existing locations.

Franchise Expansion

Expanding the franchise model can enhance revenue streams and reduce operational risks, supporting long-term growth and market presence.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining sales momentum, which could affect profitability and market competitiveness over time.

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow suggests limited capacity for reinvestment and may hinder the company's ability to fund new projects or manage debt.

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 makes money through multiple revenue streams, primarily by operating its restaurant brands, especially STK, which generates income through food and beverage sales. The company also earns revenue from management and consulting services provided to third-party restaurants and hospitality venues. Additionally, The ONE Group engages in strategic partnerships and collaborations that enhance its brand visibility and market reach, contributing to its overall earnings. Key factors influencing revenue include the company's ability to attract customers through marketing initiatives, seasonal promotions, and its reputation for quality, which helps drive sales in its establishments.

The ONE Group Hospitality Financial Statement Overview

Summary

The ONE Group Hospitality faces significant financial challenges, including declining revenues, negative net profit margins, high leverage, and negative free cash flow. These factors indicate financial instability and require careful management to navigate industry volatility.

Income Statement

The ONE Group Hospitality's revenue has shown volatility, with a recent decline in TTM. Gross profit margins have decreased over time, and the company is currently experiencing negative net profit margins, indicating challenges in profitability. The EBIT and EBITDA margins are modest but have improved slightly in the TTM, suggesting some operational efficiency gains.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage, which poses a financial risk. Return on equity has turned negative in the TTM, reflecting challenges in generating returns for shareholders. The equity ratio is low, suggesting limited financial stability.

Cash Flow

Operating cash flow remains positive, but free cash flow is negative, indicating cash constraints. The operating cash flow to net income ratio is reasonable, but the free cash flow to net income ratio is concerning. The company has not shown significant growth in free cash flow, which could impact future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	820.59M	673.34M	332.77M	316.64M	277.18M	141.94M
Gross Profit	130.17M	122.75M	65.79M	66.58M	65.18M	20.88M
EBITDA	79.30M	40.72M	34.02M	28.44M	38.57M	6.97M
Net Income	-83.81M	-15.82M	4.72M	13.53M	31.35M	-12.82M
Balance Sheet
Total Assets	879.53M	959.35M	317.25M	291.02M	229.84M	215.57M
Cash, Cash Equivalents and Short-Term Investments	5.55M	27.58M	21.05M	55.12M	23.61M	24.39M
Total Debt	642.22M	641.02M	199.29M	183.63M	132.64M	159.09M
Total Liabilities	762.64M	756.75M	249.88M	222.43M	169.31M	193.59M
Stockholders Equity	120.88M	205.25M	69.18M	69.71M	61.43M	23.18M
Cash Flow
Free Cash Flow	-26.22M	-27.37M	-22.77M	-7.38M	19.50M	-5.36M
Operating Cash Flow	35.74M	44.19M	30.78M	25.25M	30.97M	431.00K
Investing Cash Flow	-61.96M	-441.39M	-53.55M	-32.63M	-11.47M	-5.79M
Financing Cash Flow	3.59M	404.34M	-11.25M	39.10M	-20.27M	17.42M

The ONE Group Hospitality Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.99
• 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 1.99 is above the 20-day moving average (MA) of 1.98, below the 50-day MA of 2.33, and below the 200-day MA of 3.03, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 66.30 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	71 Outperform	$60.93M	14.10	6.88%	1.68%	8.83%	41.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ARKR	47 Neutral	$25.60M	-1.83	-33.50%	―	-6.89%	-42.75%
NDLS	46 Neutral	$30.55M	―	―	―	-0.35%	-37.02%
THCH	45 Neutral	$84.64M	―	―	―	-12.77%	52.05%
RRGB	40 Underperform	$74.37M	―	―	―	-3.61%	2.06%
STKS	38 Underperform	$58.48M	―	-51.90%	―	51.57%	-367.14%

The ONE Group Hospitality Corporate Events

The One Group Hospitality’s Mixed Earnings Call

The One Group Hospitality’s recent earnings call painted a mixed picture for investors. While the company showcased significant growth in its loyalty programs and successful restaurant redesigns, it also faced challenges with declining revenues and increased net losses. Despite these hurdles, the company remains optimistic about the future, buoyed by strong holiday bookings and strategic initiatives.

The ONE Group Hospitality Reports Q3 2025 Results

The ONE Group Hospitality, Inc., an international restaurant company, operates upscale and polished casual dining venues and provides hospitality management services for high-end venues globally. The company recently released its third-quarter 2025 financial results, highlighting a decrease in total revenues by 7.1% to $180.2 million compared to the same quarter in 2024, with a significant increase in net loss attributed to a non-cash tax valuation allowance and impairment losses. Despite these challenges, the company is optimizing its Grill portfolio by closing underperforming locations and converting others to more profitable formats like Benihana and STK, aiming to enhance profitability and reduce capital expenditures. The integration of Benihana continues to exceed expectations, supporting the company’s asset-light growth strategy. Looking ahead, The ONE Group is optimistic about the fourth quarter, with improved sales trends and strong holiday bookings, positioning itself to navigate current market challenges and build long-term shareholder value.

The ONE Group Hospitality Updates Investor Presentation

The ONE Group Hospitality, Inc. announced its participation in investor conferences in September. The company has updated its investor presentation, which is now available on its website, potentially impacting investor relations and stakeholder engagement.

The most recent analyst rating on (STKS) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on The ONE Group Hospitality stock, see the STKS Stock Forecast page.

The ONE Group Appoints New CFO Nicole Thaung

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.

The most recent analyst rating on (STKS) stock is a Sell with a $2.50 price target. To see the full list of analyst forecasts on The ONE Group Hospitality stock, see the STKS Stock Forecast page.