STKS · The ONE Group Hospitality, Inc.

The ONE Group Hospitality, Inc. reported first quarter 2026 results that demonstrated strong operational momentum despite a challenging consumer environment. Total GAAP revenues grew 0.8% year-over-year to $212.8 million, driven by positive comparable sales at the flagship STK brand (1.4% growth) and stable performance at Benihana. Consolidated comparable sales declined 0.3%, reflecting the impact of Grill Concepts closures. The company achieved significant margin expansion, with Restaurant Operating Profit improving 100 basis points to 19.1% of owned restaurant net revenue, driven by 280 bps improvement at STK and 130 bps at Benihana. Cost of sales as a percent of owned restaurant net revenue improved to 19.4% from 20.8%, reflecting food and beverage cost controls, menu refinement, and supply chain optimization. GAAP net income attributable to the company increased to $3.2 million from $1.0 million, while Adjusted EBITDA grew 12.1% to $28.8 million. Management highlighted strategic portfolio optimization, including the closure of underperforming Grill Concepts locations and conversion of three Kona Grill and two RA Sushi restaurants to higher-margin Benihana or STK formats. The company generated $21.7 million in operating cash flow, reduced debt by $9.1 million, and lowered capital expenditures by 23% year-over-year. For the second quarter of 2026, the company guided total GAAP revenues of $202-$206 million and Adjusted EBITDA of $24-$26 million. Full-year 2026 guidance was reiterated, with revenues of $840-$855 million and Adjusted EBITDA of $100-$110 million, reflecting confidence in continued operational improvements and capital-efficient growth.