0001104659-26-032065
SEC filingThe ONE Group Hospitality, Inc. (STKS) reported total revenues of $805.7 million for FY 2025 ending December 28, 2025, up 19.7% YoY from $673.3 million in 2024, driven by $791.8 million in owned restaurant net revenue (up 20.2% YoY from $658.9 million), primarily from a full year of Benihana and RA Sushi post-acquisition on May 1, 2024, which contributed $488.9 million. Management, license, franchise, and incentive fees were $14.0 million, down 2.8% YoY. Operating income was $8.0 million, down slightly from $8.9 million, impacted by $10.6 million impairment, $11.2 million transition costs, and higher interest expense of $40.9 million. Net loss attributable to the company widened to $92.2 million from $17.1 million, due to a $60.7 million tax provision including a non-cash valuation allowance. Basic EPS was -$4 on 31.0 million shares. Cash from operations was $30.3 million, down from $44.2 million, with capex at $57.6 million. Balance sheet shows $884.2 million assets, $772.7 million liabilities, and -$75.8 million stockholders' deficit. Forward-looking, plans include 6-10 new venues in 2026, Grill conversions, and capital-light growth amid economic pressures and SSS declines of 3.7%.
For FY 2025 ending December 28, 2025, The ONE Group Hospitality reported total revenues of $805.7M, a 19.7% increase from $673.3M in 2024, fueled by owned restaurant net revenue of $791.8M (up 20.2% YoY). Operating income dipped to $8.0M from $8.9M due to $10.6M impairment on non-current assets, $11.2M transition expenses, and higher G&A at $52.5M. Net loss attributable to the company surged to $92.2M from $17.1M, driven by $60.7M tax provision (including valuation allowance) and $40.9M interest expense. Basic loss per share was -$4 on 31.0M shares. Adjusted EBITDA rose to $88.9M from $76.4M, reflecting operational resilience post-Benihana acquisition.
Owned restaurant net revenue grew to $791.8M from $658.9M, with Benihana/RA Sushi adding $488.9M full-year vs. $338.1M partial 2024. SSS declined 3.7% amid macro pressures. Management/license/franchise fees fell 2.8% to $14.0M due to UK managed STK weakness, offset by Benihana franchises. No geographic revenue split disclosed, but 142 domestic vs. 16 international venues. Restaurant operating profit hit $127.1M (16.6% of adjusted owned revenue), up from $107.6M.
Owned cost of sales improved to 20.7% of owned revenue (down 40bps YoY) via synergies, despite inflation. Owned operating expenses rose to 63.5% (up 70bps) from SSS deleveraging. Total costs/expenses at 99.0% yielded 1.0% operating margin (down from 1.3%). G&A stable at 6.5%. Restaurant margins: STK 17.9%, Benihana 18.3%, Grill Concepts weaker at 8.3% core.
Operating cash flow $30.3M (down from $44.2M) due to receivables timing. Investing outflow $57.6M capex (new venues $30.0M). Financing $3.9M net (preferred stock/warrants). Cash $4.2M, total current assets $56.9M, current liabilities $133.2M. Long-term debt $334.0M + $9.3M current. Total liabilities $772.7M vs. $884.2M assets; stockholders' deficit -$75.8M; Series A preferred $191.3M.
Plans 6-10 new venues in 2026, including STK/Benihana under construction and Bay Area asset-light deal for 10 Benihana/Express. Convert 9 Grill sites to STK/Benihana (5 by 2026 end, $1M capex, EBITDA accretive). Focus capital-efficient growth, limit construction to 4 venues, cap leases at 12. Risks: SSS declines, impairments, debt covenants, economic conditions.