The ONE Group Hospitality Surges on Strong Execution – Exec Edge Research Update Report
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By Rayk Riechmann
The ONE Group Hospitality, Inc. (Nasdaq: STKS) shares surged after it reported first quarter results, with revenue and profitability measures steadily improving.
Following the acquisitions of Benihana and RA Sushi in 2024 (see our detailed initiation report) total revenues jumped and came in at $211.1 million, well ahead of Street estimates. The company also said comparable sales increased broadly across Benihana locations and STK restaurants saw strong transaction growth.
Management continued the company’s incremental growth strategy with the opening of six new restaurants since the first quarter of 2024 and already has plans for five to seven new venues coming in 2025.
Restaurant-level EBITDA increased 50 basis points on the back of revenue growth and profitability improvements. G&A expenses increased nominally but improved 190 basis points as a percentage of revenue.
Based on a successful merger integration, increasing adjusted EBITDA margins, and continuing sales growth, we believe this is one of many impressive quarters to come. Even with a positive share-price response, we remain bullish throughout 2025.
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