ONE Group Hospitality Inc【STKS】株式ニュース

The ONE Group Reports First Quarter 2026 Financial ResultsMay 6, 2026 4:06 PM
Business Wire Total GAAP Revenues Grew Year Over Year Owned Restaurant Cost of Sales as a Percent of Owned Restaurant Net Revenue Improved to 19.4% from 20.8% Operating Income Increased 30%, Adjusted EBITDA* Increased 12% Capital Expenditures, Net of Tenant Improvement Allowances, Reduced 23% Year-Over-Year as Company Prioritizes Capital-Efficient Growth and Free Cash Flow Generation The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today reported its financial results for the first quarter ended March 29, 2026. Highlights for the first quarter 2026 compared to the same quarter in 2025 are as follows: Total GAAP revenues increased 0.8% to $212.8 million from $211.1 million Consolidated comparable sales** decreased 0.3%, based on the same number of days year over year GAAP net income attributable to The ONE Group Hospitality, Inc. increased to $3.2 million from $1.0 million Restaurant Operating Profit*** increased by 100 basis points to 19.1% of owned restaurant net revenue, excluding Grill Concepts restaurants closed, from 18.1% Adjusted EBITDA* attributable to The ONE Group Hospitality, Inc. increased 12.1% to $28.8 million from $25.7 million “Our first quarter demonstrates strong continued momentum. We achieved positive comparable sales for the second quarter in a row at our flagship STK brand and saw substantial expansion in restaurant margins. STK’s 1.4% comparable sales growth and Benihana’s stable performance highlight the resilience of our distinctive Vibe Dining experience in a challenging consumer market. Our focused operational improvements – including food and beverage cost controls, menu refinement, integration synergies, and supply chain optimization – delivered a 100 basis point margin improvement overall. This is driven by impressive gains of 280 basis points at STK and 130 basis points at Benihana. With beef pricing secured through September 2026 and a strong operational foundation in place, we are confident in our ability to deliver on our full-year 2026 financial guidance,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group. “Our focus remains on strategic portfolio optimization and capital-efficient growth. In the first quarter, we generated $21.7 million in operating cash flow, reduced debt by $9.1 million, including eliminating our revolving facility balance entirely, and reduced capital expenditures by 23% year-over-year. We are on track to complete five Grill Concepts conversions by year-end, with our initial Scottsdale conversion achieving a 4x return on investment. Our asset-light expansion approach continues to gain traction, exemplified by our largest franchise agreement to date – our previously announced ten-unit deal for Benihana and Benihana Express restaurants in the San Francisco Bay Area,” Hilario concluded. Strategic Portfolio Optimization Grill Concepts Rationalization: Closed six underperforming Grill locations in 2025 and one in 2026 Temporarily closed three Kona Grill restaurants and two RA Sushi restaurants in January 2026 for conversion to Benihana or STK formats by the end of 2026 Conversion economics: approximately $1.0 to $1.5 million, net per conversion with a one-year payback Expected outcome: 100% profitable Grill portfolio with enhanced margins Capital Efficiency Focus: Prioritizing asset-light and conversion-driven growth Targeting new company-owned openings averaging $1.5 million, net or less in build-out costs Significant reduction in discretionary capital expenditures to strengthen balance sheet Advancing existing pipeline of approximately 12 signed leases with limited new signings 2026 Restaurant Development Restaurant Location Date Owned Kona Grill (relocation) San Antonio, Texas January 2026 Converted franchised Benihana to owned Monterey, California February 2026 Converted a franchised Benihana Express to owned Miami, Florida March 2026 2026 Restaurant Development and Pipeline Currently Under Construction (3 locations): Owned STK restaurant in Phoenix, Arizona Owned STK restaurant in New York, New York (relocation of an existing STK restaurant) Owned Benihana restaurant in Seattle, Washington Asset-Light Expansion Highlights: Ten-restaurant franchise development agreement for Benihana/Benihana Express in Greater San Francisco Bay Area, California that accelerates West Coast expansion while maintaining capital discipline Two-restaurant commitment for a franchised Benihana and a licensed Benihana Express in the Florida Keys in partnership with experienced operator to ensure quality execution Liquidity As of March 29, 2026, the Company held $17.9 million in cash and short-term credit card receivables and had $33.7 million available under its revolving credit facility, or a total of $51.6 million in short term liquidity. Under the current conditions, the Company’s credit facility does not have any financial covenants. 2026 Financial Targets The Company is introducing the following second quarter financial targets and reiterating its full year financial targets, reflecting the benefits of portfolio optimization, operational improvements, and continued Benihana integration synergies. Financial Results and Other Select Data US$s in millions Q2 2026 Guidance June 28, 2026 2026 Guidance December 27, 2026 Total GAAP revenues $202 to $206 $840 to $855 Consolidated comparable sales 1% to 2% 1% to 3% Managed, license and franchise fee revenues $3 to $4 $14 to $15 Total owned operating expenses as a percentage of owned restaurant net revenue 81% to 82% 82% to 83% Consolidated total G&A, excluding stock-based compensation $13 to $14 Approx. $53 Consolidated Adjusted EBITDA(1) $24 to $26 $100 to $110 Consolidated restaurant pre-opening expenses $1 to $2 $5 to $6 Consolidated effective income tax rate 10% to 20% Consolidated total capital expenditures, net of allowances received by landlords $38 to $42 Consolidated number of new system-wide venues 6 to 10 new venues (1) We have not reconciled guidance for Consolidated Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure are not available without unreasonable effort. Conference Call and Webcast Emanuel “Manny” Hilario, President and Chief Executive Officer, and Nicole Thaung, Chief Financial Officer, will host a conference call and webcast today at 4:30 PM Eastern Time. The conference call can be accessed live over the phone by dialing 201-389-0908. A replay will be available after the call and can be accessed by dialing 412-317-6671; the passcode is 13759769. The replay will be available until Wednesday, May 20, 2026. The webcast can be accessed from the Investor Relations tab of The ONE Group’s website at www.togrp.com under “News / Events.” About The ONE Group The ONE Group Hospitality, Inc. (Nasdaq: STKS) is an international restaurant company that develops and operates upscale and polished casual, high-energy restaurants and lounges and provides hospitality management services for hotels, casinos and other high-end venues both in the U.S. and internationally. The ONE Group is recognized as one of “America’s Greatest Companies” (Newsweek, 2025), and Benihana is honored as one of ”America’s Best Brands for Value” (Forbes, 2025). The ONE Group’s focus is to be the global leader in Vibe Dining, and its primary restaurant brands and operations are: STK, a modern twist on the American steakhouse concept with restaurants in major metropolitan cities in the U.S., Europe and the Middle East, featuring premium steaks, seafood and specialty cocktails in an energetic upscale atmosphere. Benihana, an interactive dining destination with highly skilled chefs preparing food right in front of guests and served in an energetic atmosphere alongside fresh sushi and innovative cocktails. The Company franchises Benihanas in the U.S., Caribbean, Central America, and South America. Samurai, an interactive dining experience located in sunny Miami, FL, provides a distinctive dining experience where skilled personal chefs masterfully perform the ancient art of teppanyaki right before your eyes. Kona Grill, a polished casual, bar-centric Grill concept with restaurants in the U.S., featuring American favorites, award-winning sushi, and specialty cocktails in an upscale casual atmosphere. Salt Water Social is your gateway to the seven seas, featuring an array of signature and unique fresh seafood items, complemented by the highest quality beef dishes and elegant, delicious cocktails. Benihana Express, a small footprint casual concept showcasing the best of Benihana but without teppanyaki tables or bar. RA Sushi, a Japanese cuisine concept that offers a fun-filled, bar-forward, upbeat, and vibrant dining atmosphere with restaurants in the U.S. anchored by creative sushi, inventive drinks, and outstanding service. ONE Hospitality, The ONE Group’s food and beverage hospitality services business develops, manages and operates premier restaurants and turnkey food and beverage services within high-end hotels and casinos currently operating venues in the U.S. and Europe. Additional information about The ONE Group can be found at www.togrp.com. Non-GAAP Definitions We have evolved our definition of non-GAAP financial measures starting in Q4 2025. We use certain non-GAAP measures in analyzing operating performance and believe that the presentation of these measures provides investors and analysts with information that is beneficial to gaining an understanding of the Company's financial results. Non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP. We exclude items management does not consider in the evaluation of its ongoing core operating performance from Adjusted EBITDA. Starting in Q4 2025, the Adjusted EBITDA attributable to closed Grill Concepts restaurants is excluded from Adjusted EBITDA. Reconciliations of these non-GAAP measures are included under “Reconciliation of Non-GAAP Measures” in this press release. * We define Adjusted EBITDA as net income (loss) before interest expense, provision for income taxes, depreciation and amortization, stock-based compensation, lease termination and restaurant closure expenses, transition and integration expenses, transaction and exit costs, non-cash rent, non-cash impairment loss, non-recurring gains and losses, certain transactional and exit costs, loss on early debt extinguishment, and the Adjusted EBITDA attributable to the Grill Concepts restaurants closed. Adjusted EBITDA has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of Net income (loss) to Adjusted EBITDA in this press release. ** Comparable sales represent total U.S. food and beverage sales at owned and managed units, a non-GAAP financial measure, opened for at least a full 24-months. This measure includes total revenue from our owned and managed locations. The Company monitors sales growth at its established restaurant base in addition to growth that results from restaurant acquisitions and new restaurant openings. Refer to the reconciliation of GAAP revenue to total food and beverage sales at owned and managed units in this press release. *** We define Restaurant Operating Profit as owned restaurant net revenue minus owned restaurant cost of sales and owned restaurant operating expenses. Restaurant Operating Profit has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of operating income to Restaurant Operating Profit in this press release. Cautionary Statement on Forward-Looking Statements This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, including with respect to 2025 results, the impact of the Benihana Inc. acquisition, portfolio optimization, restaurant openings and 2026 financial targets. Forward-looking statements may be identified by the use of words such as “target,” “intend,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements, including but not limited to: (1) our ability to integrate the new or acquired restaurants into our operations without disruptions to operations; (2) our ability to capture anticipated synergies; (3) our ability to open new restaurants and food and beverage locations in current and additional markets, grow and manage growth profitably, maintain relationships with suppliers and obtain adequate supply of products and retain employees; (4) factors beyond our control that affect the number and timing of new restaurant openings, including weather conditions and factors under the control of landlords, contractors and regulatory and/or licensing authorities; (5) our ability to successfully improve performance and cost, realize the benefits of our marketing efforts and achieve improved results as we focus on developing new management and license deals; (6) changes in applicable laws or regulations; (7) the possibility that The ONE Group may be adversely affected by other economic, business, and/or competitive factors, including economic downturns; (8) the impact of actual and potential changes in immigration policies, including potential labor shortages; (9) the potential impact of the imposition of tariffs, including increases in food prices and inflation and any resulting negative impacts on the macro-economic environment; (10) the impact of international conflicts on macroeconomic conditions; (11) risks related to our development and franchise partners; and (12) other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed for the year ended December 31, 2025 and Quarterly Reports on Form 10-Q. Investors are referred to the most recent reports filed with the Securities and Exchange Commission by The ONE Group Hospitality, Inc. Investors are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. THE ONE GROUP HOSPITALITY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except income per share and related share information) For the three periods ended March 29, For the three periods ended March 30, 2026 2025 Revenues: Owned restaurant net revenue $ 209,292 $ 207,398 Management, license, franchise and incentive fee revenue 3,524 3,731 Total revenues 212,816 211,129 Cost and expenses: Owned operating expenses: Owned restaurant cost of sales 40,534 43,120 Owned restaurant operating expenses 129,036 128,775 Total owned operating expenses 169,570 171,895 General and administrative (including stock-based compensation of $1,134 and $1,632 for the three periods ended March 29, 2026 and March 30, 2025, respectively 15,022 13,091 Depreciation and amortization 10,405 9,829 Lease termination and restaurant closure expenses 1,965 71 Pre-opening expenses 1,471 1,681 Transition and integration expenses 466 3,719 Transaction costs — 69 Other expenses 20 45 Total costs and expenses 198,919 200,400 Operating income 13,897 10,729 Other expenses, net: Interest expense, net of interest income 9,746 9,822 Total other expenses, net 9,746 9,822 Income before provision for income taxes 4,151 907 Provision for income taxes 1,162 285 Net income 2,989 622 Less: net loss attributable to noncontrolling interest (213 ) (353 ) Net income attributable to The ONE Group Hospitality, Inc. $ 3,202 $ 975 Series A Preferred Stock paid-in-kind dividend and accretion (9,395 ) (7,591 ) Net loss available to common stockholders $ (6,193 ) $ (6,616 ) Net loss per common share: Basic $ (0.20 ) $ (0.21 ) Diluted $ (0.20 ) $ (0.21 ) Weighted average common shares outstanding: Basic 31,282,911 31,045,156 Diluted 31,282,911 31,045,156 The following table sets forth certain statements of operations data as a percentage of total revenues for the periods indicated. Certain percentage amounts may not sum to total due to rounding. For the three periods ended March 29, For the three periods ended March 30, 2026 2025 Revenues: Owned restaurant net revenue 98.3 % 98.2 % Management, license, franchise and incentive fee revenue 1.7 % 1.8 % Total revenues 100.0 % 100.0 % Cost and expenses: Owned operating expenses: Owned restaurant cost of sales (1)(2) 19.4 % 20.8 % Owned restaurant operating expenses (1) 61.7 % 62.1 % Total owned operating expenses (1) 81.0 % 82.9 % General and administrative (including stock-based compensation of 0.5% and 0.8% for the three periods ended March 29, 2026 and March 30, 2025, respectively) 7.1 % 6.2 % Depreciation and amortization 4.9 % 4.7 % Lease termination and restaurant closure expenses 0.9 % 0.0 % Pre-opening expenses 0.7 % 0.8 % Transition and integration expenses 0.2 % 1.8 % Transaction costs — % 0.0 % Other expenses 0.0 % 0.0 % Total costs and expenses 93.5 % 94.9 % Operating income 6.5 % 5.1 % Other expenses, net: Interest expense, net of interest income 4.6 % 4.7 % Total other expenses, net 4.6 % 4.7 % Income before provision for income taxes 2.0 % 0.4 % Provision for income taxes 0.5 % 0.1 % Net income 1.4 % 0.3 % Less: net loss attributable to noncontrolling interest (0.1 )% (0.2 )% Net income attributable to The ONE Group Hospitality, Inc. 1.5 % 0.5 % ____________________ (1) These expenses are shown as a percentage of owned restaurant net revenue. (2) Owned restaurant cost of sales as a percent of owned restaurant net revenue has improved year over year since the acquisition of Benihana in 2024, as noted in the table below. For the three periods ended March 29, For the year ended December 28, For the year ended December 31, 2026 2025 2024 Owned restaurant cost of sales 19.4% 20.1% 21.0% THE ONE GROUP HOSPITALITY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands, except share information) March 29, December 28, 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 6,121 $ 4,168 Credit card receivable 11,825 19,480 Restricted cash and cash equivalents 499 499 Accounts receivable 11,011 15,389 Inventory 9,409 9,839 Other current assets 7,608 7,521 Total current assets 46,473 56,896 Property and equipment, net 281,291 278,195 Operating lease right-of-use assets 253,592 253,228 Goodwill 155,783 155,783 Intangibles, net 128,939 128,988 Other assets 8,910 8,852 Security deposits 2,220 2,254 Total assets $ 877,208 $ 884,196 LIABILITIES, SERIES A PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT Current liabilities: Accounts payable $ 33,612 $ 36,633 Accrued payroll expenses 21,780 19,286 Accrued expenses 44,913 46,356 Current portion of operating lease liabilities 13,839 13,803 Deferred gift card revenue and other 5,414 6,819 Current portion of long-term debt 9,432 9,302 Other current liabilities 1,188 1,017 Total current liabilities 130,178 133,216 Long-term debt, net of current portion, unamortized discount and debt issuance costs 325,575 334,013 Operating lease liabilities, net of current portion 294,683 293,985 Other long-term liabilities 6,221 6,319 Deferred tax liabilities, net 5,187 5,187 Total liabilities 761,844 772,720 Commitments and contingencies (Note 16) Series A preferred stock, $0.0001 par value, 160,000 shares authorized; 160,000 issued and outstanding at March 29, 2026 and December 28, 2025 200,698 191,303 Stockholders’ deficit: Common stock, $0.0001 par value, 75,000,000 shares authorized; 34,786,350 issued and 31,506,361 outstanding at March 29, 2026 and 34,520,226 issued and 31,242,344 outstanding at December 28, 2025 3 3 Preferred stock, other than Series A preferred stock, $0.0001 par value, 9,840,000 shares authorized; no shares issued and outstanding at March 29, 2026 and December 28, 2025 — — Treasury stock, at cost, 3,402,881 shares at March 29, 2026 and December 28, 2025 (19,308 ) (19,308 ) Additional paid-in capital 31,242 39,712 Accumulated deficit (90,014 ) (93,216 ) Accumulated other comprehensive loss (3,055 ) (3,029 ) Total stockholders’ deficit (81,132 ) (75,838 ) Noncontrolling interests (4,202 ) (3,989 ) Total deficit (85,334 ) (79,827 ) Total liabilities, Series A preferred stock and stockholders' deficit $ 877,208 $ 884,196 Reconciliation of Non-GAAP Measures We prepare our financial statements in accordance with generally accepted accounting principles (GAAP). In this press release, we also make references to the following non-GAAP financial measures: total food and beverage sales at owned and managed units, Adjusted EBITDA, Restaurant Operating Profit and Restaurant EBITDA. Total food and beverage sales at owned and managed units. Total food and beverage sales at owned and managed units represents our total revenue from our owned operations as well as the revenue reported to us with respect to sales at our managed locations, where we earn management and incentive fees. We believe that this measure represents a useful internal measure of performance as it identifies total sales associated with our brands and hospitality services that we provide. Accordingly, we include this non-GAAP measure so that investors can review financial data that management uses in evaluating performance, and we believe that it will assist the investment community in assessing performance of restaurants and other services we operate, whether or not the operation is owned by us. However, because this measure is not determined in accordance with GAAP, it is susceptible to varying calculations and not all companies calculate these measures in the same manner. As a result, this measure as presented may not be directly comparable to a similarly titled measure presented by other companies. This non-GAAP measure is presented as supplemental information and not as an alternative to any GAAP measurements. The following table includes a reconciliation of our GAAP revenue to total food and beverage sales at our owned and managed units (in thousands): For the three periods ended March 29, For the three periods ended March 30, 2026 2025 (unaudited) (unaudited) Owned restaurant net revenue (1) $ 209,292 $ 207,398 Management, license and incentive fee revenue 3,524 3,781 GAAP revenues $ 212,816 $ 211,129 Food and beverage sales from managed units (1) 31,209 33,803 Total food and beverage sales at owned and managed units $ 240,501 $ 241,201 ____________________ (1) Components of total food and beverage sales at owned and managed units The following table presents a reconciliation of Owned restaurant net revenue for the periods ended March 30, 2025 to the three periods ended March 29, 2026 (in thousands): Owned restaurant net revenue for the three periods ended March 30, 2025 $ 207,398 Decrease in sales for Grill Concepts restaurants closed(1) (8,131 ) Decrease in sales due to the elimination of auto-gratuities(2) (1,269 ) Increase in sales due to fiscal calendar shift(3) 8,291 Other changes in sales(4) 3,003 Owned restaurant net revenue for the three periods ended March 29, 2026 209,292 ____________________ (1) Grill Concepts restaurants closed are comprised of Owned restaurant net revenue from Grill Concepts closed prior to March 29, 2026. (2) The elimination of auto-gratuities has no impact on net income attributable to The ONE Group Hospitality, Inc. or Adjusted EBITDA attributable to The ONE Group Hospitality, Inc. as the associated expense in Owned restaurant operating expenses was also eliminated. (3) On January 1, 2025, the Company transitioned from a calendar-based fiscal year to a 52/53-week fiscal year. The Company’s first quarter of 2026 was the 91-day period of December 29, 2025 through March 29, 2026 compared to the first quarter of 2025 which was the 89-day period of January 1, 2025 through March 30, 2025. The first quarter of 2026 included New Years Eve while the first quarter of 2025 did not include New Years Eve. (4) Other changes in sales is comprised of sales generated by new restaurant openings and the change in same store sales. The following table presents the elements of the quarterly and annual Same Store Sales measure for 2025 and 2026: 2025 vs. 2024 2026 vs. 2025 Q1 Q2 Q3 Q4 YTD Q1 US STK Owned Restaurants (2.3 )% (4.9 )% (6.2 )% (0.7 )% (3.4 )% (0.1 )% US STK Managed Restaurants (12.7 )% (9.5 )% (4.7 )% 4.2 % (4.6 )% 8.1 % US STK Total Restaurants (3.6 )% (6.0 )% (5.8 )% 0.3 % (3.7 )% 1.4 % Benihana Owned Restaurants 0.7 % 0.4 % (4.0 )% (0.4 )% (0.8 )% — % Grill Concepts Core Owned Restaurants (13.3 )% (14.0 )% (10.8 )% (8.1 )% (11.6 )% (4.9 )% Grill Concepts Non-Core Owned Restaurants (15.1 )% (17.3 )% (18.0 )% (16.5 )% (16.5 )% (13.1 )% Grill Concepts Total Owned Restaurants (13.7 )% (14.6 )% (11.8 )% (9.4 )% (12.5 )% (5.3 )% Combined Same Store Sales (3.2 )% (4.1 )% (5.9 )% (1.8 )% (3.7 )% (0.3 )% Adjusted EBITDA. We define Adjusted EBITDA as net income before interest expense, provision for income taxes, depreciation and amortization, stock-based compensation, lease termination and restaurant closure expenses, transition and integration expenses, transaction costs, non-cash rent, non-cash impairment loss, non-recurring gains and losses, certain transactional and exit costs, loss on early debt extinguishment and the Adjusted EBITDA attributable to Grill Concepts restaurants closed. Not all the aforementioned items defining Adjusted EBITDA occur in each reporting period but have been included in our definitions of terms based on our historical activity. Adjusted EBITDA has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. The following table presents a reconciliation of net loss to EBITDA and Adjusted EBITDA for the periods indicated (in thousands): For the three periods ended March 29, For the three periods ended March 30, 2026 2025 Net income attributable to The ONE Group Hospitality, Inc. $ 3,202 $ 975 Net loss attributable to noncontrolling interest (213 ) (353 ) Net income 2,989 622 Interest expense, net 9,746 9,822 Provision for income taxes 1,162 285 Depreciation and amortization 10,405 9,829 EBITDA 24,302 20,558 Stock-based compensation 1,134 1,632 Lease termination and restaurant closure expenses(1) 1,965 71 Transition and integration expenses 466 3,719 Transaction costs — 69 Non-cash rent(2) 439 (1,120 ) Grill Concepts restaurants closed(3) 181 457 Other expenses 20 45 Adjusted EBITDA 28,507 25,431 Adjusted EBITDA attributable to noncontrolling interest (282 ) (240 ) Adjusted EBITDA attributable to The ONE Group Hospitality, Inc. $ 28,789 $ 25,671 ____________________ (1) Lease termination and restaurant closure expenses are costs associated with closed locations which includes $0.5 million in non-cash expenses. (2) Non-cash rent expense is included in owned restaurant operating expenses, pre-opening expenses and general and administrative expense on the condensed consolidated statements of operations. (3) Grill Concepts restaurants closed are comprised of Adjusted EBITDA from Grill Concepts restaurants closed prior to March 29, 2026. The following table presents a reconciliation of Owned restaurant net revenue, excluding net revenue of Grill Concepts restaurants closed prior to March 29, 2026 for the periods indicated (in thousands): For the three periods ended March 29, For the three periods ended March 30, 2026 2025 Owned restaurant net revenue $ 209,292 $ 207,398 Grill Concepts restaurants closed owned restaurant net revenue (340 ) (8,471 ) Owned restaurant net revenue, excluding Grill Concepts restaurants closed 208,952 198,927 Restaurant Operating Profit and Restaurant EBITDA. We define Restaurant Operating Profit as owned restaurant net revenue minus owned restaurant cost of sales and owned restaurant operating expenses. We define Restaurant EBITDA as Restaurant Operating Profit minus non-cash rent. We believe Restaurant Operating Profit and Restaurant EBITDA are an important component of financial results because: (i) they are widely used metrics within the restaurant industry to evaluate restaurant-level productivity, efficiency, and performance, and (ii) we use Restaurant Operating Profit and Restaurant EBITDA as key metrics to evaluate our restaurant financial performance compared to our competitors. We use these metrics to facilitate a comparison of our operating performance on a consistent basis from period to period, to analyze the factors and trends affecting our business and to evaluate the performance of our restaurants. The following table presents a reconciliation of Operating income to Restaurant Operating Profit and Restaurant EBITDA for the periods indicated (in thousands): For the three periods ended March 29, For the three periods ended March 30, 2026 2025 Operating income as reported $ 13,897 $ 10,729 Management, license and incentive fee revenue (3,524 ) (3,731 ) General and administrative 15,022 13,091 Depreciation and amortization 10,405 9,829 Lease termination and restaurant closure expenses 1,965 71 Pre-opening expenses 1,471 1,681 Transition and integration expenses 466 3,719 Transaction costs — 69 Grill Concepts restaurants closed(1) 186 433 Other expenses 20 45 Restaurant Operating Profit, excluding Grill Concepts restaurants closed $ 39,908 $ 35,936 Restaurant Operating Profit as a percentage of owned restaurant net revenue, excluding Grill Concepts restaurants closed(2) 19.1 % 18.1 % Non-Cash Rent (109 ) (1,535 ) Restaurant EBITDA $ 39,799 $ 34,401 Restaurant EBITDA as a percentage of owned restaurant net revenue, excluding Grill Concepts restaurants closed(2) 19.0 % 17.3 % ____________________ (1) Grill Concepts restaurants closed are comprised of Adjusted EBITDA from Grill Concepts closed prior to March 29, 2026. (2) Grill Concepts restaurants closed are comprised of Owned restaurant net revenue from Grill Concepts closed prior to March 29, 2026. Restaurant Operating Profit by brand is as follows (in thousands): For the three periods ended March 29, For the three periods ended March 30, 2026 2025 STK restaurant operating profit (Company owned) $ 12,973 $ 10,136 STK restaurant operating profit (Company owned) as a percentage of STK revenue (Company owned) 21.3 % 18.5 % Benihana restaurant operating profit (Company owned) $ 25,387 $ 22,886 Benihana restaurant operating profit (Company owned) as a percentage of Benihana revenue (Company owned) 21.1 % 19.8 % Core Grill Concepts restaurant operating profit $ 1,657 $ 3,054 Core Grill Concepts restaurant operating profit as a percentage of Core Grill Concepts revenue 6.3 % 11.2 % Non-core Grill Concepts restaurant operating profit excluding Grill Concepts restaurants closed(1) $ (67 ) $ (196 ) Non-core Grill Concepts restaurant operating profit as a percentage of Non-core Grill Concepts revenue, excluding Grill Concepts restaurants closed(2) (5.4 )% (14.1 )% ____________________ (1) Grill Concepts restaurants closed are comprised of restaurant operating profit from Grill Concepts closed prior to March 29, 2026. (2) Grill Concepts restaurants closed are comprised of Owned restaurant net revenue from Grill Concepts closed prior to March 29, 2026. Restaurant EBITDA by brand is as follows (in thousands): For the three periods ended March 29, For the three periods ended March 30, 2026 2025 STK restaurant EBITDA (Company owned) $ 12,511 $ 9,695 STK restaurant EBITDA (Company owned) as a percentage of STK revenue (Company owned) 20.5 % 17.7 % Benihana restaurant EBITDA (Company owned) $ 25,755 $ 23,171 Benihana restaurant EBITDA (Company owned) as a percentage of Benihana revenue (Company owned) 21.4 % 20.1 % Core Grill Concepts restaurant EBITDA $ 1,607 $ 1,636 Core Grill Concepts restaurant EBITDA as a percentage of Core Grill Concepts revenue 6.1 % 6.0 % Non-core Grill Concepts restaurant EBITDA excluding Grill Concepts restaurants closed(1) $ (32 ) $ (157 ) Non-core Grill Concepts restaurant EBITDA as a percentage of Non-core Grill Concepts revenue, excluding Grill Concepts restaurants closed(2) (2.6 )% (11.3 )% ____________________ (1) Grill Concepts restaurants closed are comprised of restaurant EBITDA from Grill Concepts closed prior to March 29, 2026. (2) Grill Concepts restaurants closed are comprised of Owned restaurant net revenue from Grill Concepts closed prior to March 29, 2026. View source version on businesswire.com: https://www.businesswire.com/news/home/20260506456708/en/ Investors:
ICR
Michelle Michalski or Raphael Gross
(646) 277-1224
Michelle.Michalski @4tuneseeker
seth.grugle@icrinc.com Original: The ONE Group Reports First Quarter 2026 Financial Results

The ONE Group Reports Fourth Quarter and Full Year 2025 Financial ResultsMarch 13, 2026 7:15 AM
Business Wire
Strategic Portfolio Optimization Creating Long-Term Value

Cost Management Drives Restaurant Margin Improvement in Fourth Quarter

Full Year 2026 Financial Targets Introduced

The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today reported its financial results for the fourth quarter and full year ended December 28, 2025.

Effective January 1, 2025, the Company adopted a new fiscal calendar structure using four 13-week quarters, with a 53rd week added when necessary. The 2025 fiscal year ran from January 1, 2025, to December 28, 2025.

This fiscal calendar change created timing differences that impacted quarterly comparisons: the fourth quarter of 2025 had 91 days versus 92 days in the fourth quarter of 2024. Additionally, the New Year’s Eve holiday shifted from fiscal 2025 to fiscal 2026. The exclusion of New Year’s Eve in the current year impacted total GAAP revenues by approximately 2.5%, representing 37% of the total GAAP revenue decline for the quarter.

Highlights for the fourth quarter 2025 compared to the same quarter in 2024 are as follows:

Total GAAP revenues decreased 6.7% to $207 million from $222 million;

Consolidated comparable sales* decreased 1.8%;

GAAP net loss attributable to The ONE Group Hospitality, Inc. increased to $6 million from a net income of $2 million primarily related to a non-cash loss on impairment of $7 million related to the Grill optimization strategy;

Restaurant Operating Profit** increased by 10 basis points to 19.5% of owned restaurant net revenue, excluding Grill Concepts restaurants closed or to be closed, from 19.4%; and,

Adjusted EBITDA*** attributable to The ONE Group Hospitality, Inc. decreased to $28 million from $31 million, with approximately $3 million of the decrease attributable to the New Year’s Eve holiday shift from fiscal 2025 to fiscal 2026.

Highlights for the full year 2025 compared to the full year 2024 are as follows:

Total GAAP revenues increased 19.7% to $806 million from $673 million;

Consolidated comparable sales* decreased 3.7%;

GAAP net loss attributable to The ONE Group Hospitality, Inc. increased to $92 million from a net loss of $17 million due primarily to an increase in the income tax expenses of $69 million, primarily related to the establishment of a non-cash tax valuation allowance, and non-cash lease termination and exits costs of $7 million coupled with a non-cash impairment of $11 million related to the Grill optimization strategy;

Adjusted Operating Income**** increased 15.2% to $38 million from $33 million; and,

Adjusted EBITDA*** attributable to The ONE Group Hospitality, Inc. increased 16.3% to $89 million, excluding approximately $4 million attributable to two days in fiscal year 2025 versus fiscal year 2024, from $76 million.

“Guests continue to choose our differentiated Vibe Dining concepts when they want memorable experiences. In the fourth quarter, consolidated comparable sales improved by four percentage points sequentially from the third quarter, with every brand contributing. So far in the first quarter, we are delivering positive consolidated comparable sales. These results confirm that our strategy is working, even in a challenging consumer environment,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.

“Our disciplined cost management initiatives continue to drive results. In the fourth quarter, we expanded our restaurant operating margins, even while facing sales deleveraging. Looking ahead, our operational foundation remains strong, supported by beef supply and pricing secured through September 2026 and significant cost synergies from the Benihana acquisition that we believe we have yet to fully capture,” Hilario continued.

“In 2025, we took decisive action to optimize our portfolio and position the company for sustained long-term growth. We closed six underperforming Grill locations and identified up to five additional units for conversion to our higher-performing Benihana or STK formats through 2026. Our first RA Sushi to STK conversion in Scottsdale, Arizona has exceeded expectations, operating at a run rate of approximately $7 million in annualized sales on an approximate $1 million capital investment. This validates the strength of this repositioning strategy. Additionally, we advanced our asset-light growth strategy by securing development rights for ten Benihana and Benihana Express locations in the San Francisco Bay Area, representing the largest franchise agreement in our Company's history. We have also secured a commitment for an additional franchised Benihana location and a licensed Benihana Express location in the Florida Keys,” Hilario concluded.

Strategic Portfolio Optimization

Grill Concepts Rationalization:

Closed six underperforming Grill locations in 2025 and one in 2026;

Identified up to five additional Grill units for conversion to Benihana or STK formats through 2026;

Conversion economics: approximately $1.0 to $1.5 million per conversion with a one-year payback; and

Expected outcome: 100% profitable Grill portfolio with enhanced margins.

Capital Efficiency Focus:

Prioritizing asset-light and conversion-driven growth;

Targeting new company-owned openings averaging $1.5 million or less in build-out costs;

Significant reduction in discretionary capital expenditures to strengthen balance sheet; and

Advancing existing pipeline of approximately 12 signed leases with limited new signings.

2025 Restaurant Development

Restaurant

Location

Opening Date

Owned Benihana

San Mateo, California

March 2025

Owned STK

Topanga, California

April 2025

Owned STK (relocation)

Los Angeles, California

May 2025

Franchised Benihana Express

Miami, Florida

June 2025

Owned STK (RA Sushi conversion)

Scottsdale, Arizona

October 2025

Sports Arena Benihana

UBS Arena in Elmont, New York

December 2025

Owned STK

Oak Brook, Illinois

December 2025

2026 Restaurant Development and Pipeline

Quarter-to-date Activity:

January 2026: Opened Company-owned Kona Grill in San Antonio, Texas (relocation)

February 2026: Converted franchised Benihana to owned in Monterey, California

Currently Under Construction (4 locations):

Owned STK in Phoenix, Arizona

Owned STK in New York, New York (relocation of an existing STK restaurant)

Owned Benihana in San Jose, California

Owned Benihana in Seattle, Washington

Asset-Light Expansion Highlights:

Ten-restaurant franchise development agreement for Benihana/Benihana Express in Greater San Francisco Bay Area, California

Accelerates West Coast expansion while maintaining capital discipline

Two-restaurant commitment for a franchised Benihana and a licensed Benihana Express in the Florida Keys

Partnership with experienced operator ensures quality execution

Liquidity

As of December 28, 2025, the Company held $24 million in cash and short-term credit card receivables and had $27 million available under our revolving credit facility, or a total of $51 million in short term liquidity. Under the current conditions, the Company’s credit facility does not have any financial covenants.

2026 Financial Targets

The Company is introducing the following financial targets, reflecting the benefits of portfolio optimization, operational improvements, and continued Benihana integration synergies.

Financial Results and Other Select Data

US$s in millions

Q1 2026 Guidance

March 29, 2026

2026 Guidance

December 27, 2026

Total GAAP revenues

$217 to $221

$840 to $855

Consolidated comparable sales

0% to 1%

1% to 3%

Managed, license and franchise fee revenues

$3.5 to $4.0

$14 to $15

Total owned operating expenses as a percentage of owned restaurant net revenue

82% to 83%

82% to 83%

Consolidated total G&A, excluding stock-based compensation

$13 to $14

Approx. $53

Consolidated Adjusted EBITDA(1)

$28 to $29

$100 to $110

Consolidated restaurant pre-opening expenses

$1 to $2

$5 to $6

Consolidated effective income tax rate

Approx. 10%

Consolidated total capital expenditures, net of allowances received by landlords

$38 to $42

Consolidated number of new system-wide venues

6 to 10 new venues

Note: As of January 1, 2025, we began reporting financial information on a fiscal quarter basis using four 13-week quarters with the addition of a 53rd week when necessary. Our fourth quarter of 2025 had 91 days. For 2026, our fiscal calendar began on December 29, 2025 and ends on December 27, 2026.

(1) We have not reconciled guidance for Consolidated Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure are not available without unreasonable effort.

Conference Call and Webcast

Emanuel “Manny” Hilario, President and Chief Executive Officer, and Nicole Thaung, Chief Financial Officer, will host a conference call and webcast today at 8:30 AM Eastern Time.

The conference call can be accessed live over the phone by dialing 412-542-4186. A replay will be available after the call and can be accessed by dialing 412-317-6671; the passcode is 10206228. The replay will be available until Friday, March 27, 2026.

The webcast can be accessed from the Investor Relations tab of The ONE Group’s website at www.togrp.com under “News / Events.”

About The ONE Group

The ONE Group Hospitality, Inc. (Nasdaq: STKS) is an international restaurant company that develops and operates upscale and polished casual, high-energy restaurants and lounges and provides hospitality management services for hotels, casinos and other high-end venues both in the U.S. and internationally. The ONE Group is recognized as one of “America’s Greatest Companies” (Newsweek, 2025), and Benihana is honored as one of ”America’s Best Brands for Value” (Forbes, 2025). The ONE Group’s focus is to be the global leader in Vibe Dining, and its primary restaurant brands and operations are:

STK, a modern twist on the American steakhouse concept with restaurants in major metropolitan cities in the U.S., Europe and the Middle East, featuring premium steaks, seafood and specialty cocktails in an energetic upscale atmosphere.

Benihana, an interactive dining destination with highly skilled chefs preparing food right in front of guests and served in an energetic atmosphere alongside fresh sushi and innovative cocktails. The Company franchises Benihanas in the U.S., Caribbean, Central America, and South America.

Samurai, an interactive dining experience located in sunny Miami, FL, provides a distinctive dining experience where skilled personal chefs masterfully perform the ancient art of teppanyaki right before your eyes.

Kona Grill, a polished casual, bar-centric Grill concept with restaurants in the U.S., featuring American favorites, award-winning sushi, and specialty cocktails in an upscale casual atmosphere.

Salt Water Social is your gateway to the seven seas, featuring an array of signature and unique fresh seafood items, complemented by the highest quality beef dishes and elegant, delicious cocktails.

Benihana Express, a small footprint casual concept showcasing the best of Benihana but without teppanyaki tables or bar.

RA Sushi, a Japanese cuisine concept that offers a fun-filled, bar-forward, upbeat, and vibrant dining atmosphere with restaurants in the U.S. anchored by creative sushi, inventive drinks, and outstanding service.

ONE Hospitality, The ONE Group’s food and beverage hospitality services business develops, manages and operates premier restaurants and turnkey food and beverage services within high-end hotels and casinos currently operating venues in the U.S. and Europe.

Additional information about The ONE Group can be found at www.togrp.com.

Non-GAAP Definitions

We have evolved our definition of non-GAAP financial measures starting in Q4 2025. We use certain non-GAAP measures in analyzing operating performance and believe that the presentation of these measures provides investors and analysts with information that is beneficial to gaining an understanding of the Company's financial results. Non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP.

We exclude items management does not consider in the evaluation of its ongoing core operating performance from Adjusted EBITDA. Starting in Q4 2025, the Adjusted EBITDA attributable to closed Grill Concepts restaurants is excluded from Adjusted EBITDA. Reconciliations of these non-GAAP measures are included under “Reconciliation of Non-GAAP Measures” in this press release.

*Comparable sales represent total U.S. food and beverage sales at owned and managed units, a non-GAAP financial measure, opened for at least a full 24-months. This measure includes total revenue from our owned and managed locations. The Company monitors sales growth at its established restaurant base in addition to growth that results from restaurant acquisitions and new restaurant openings. Refer to the reconciliation of GAAP revenue to total food and beverage sales at owned and managed units in this press release.

** We define Adjusted EBITDA as net income (loss) before interest expense, provision for income taxes, depreciation and amortization, stock-based compensation, transition and integration expenses, loss on impairment of non-current assets, lease termination and exit expenses, transaction and exit costs, loss on early debt extinguishment, non-cash rent and the Adjusted EBITDA attributable to the closed Grill Concepts restaurants. Adjusted EBITDA has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of Net income (loss) to Adjusted EBITDA in this press release.

*** We define Restaurant Operating Profit as owned restaurant net revenue minus owned restaurant cost of sales and owned restaurant operating expenses. Restaurant Operating Profit has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of operating income to Restaurant Operating Profit in this press release.

**** We define Adjusted Operating Income as operating income (loss) before transition and integration expenses, loss on impairment of non-current assets, lease termination and exit expenses and transaction and exit costs. Not all the aforementioned items defining Adjusted Operating Income occur in each reporting period but have been included in our definitions of terms based on our historical activity. Adjusted Operating Income has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of operating income to Adjusted Operating Income in this press release.

Cautionary Statement on Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, including with respect to 2025 results, the impact of the Benihana Inc. acquisition, portfolio optimization, restaurant openings and 2026 financial targets. Forward-looking statements may be identified by the use of words such as “target,” “intend,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements, including but not limited to: (1) our ability to integrate the new or acquired restaurants into our operations without disruptions to operations; (2) our ability to capture anticipated synergies; (3) our ability to open new restaurants and food and beverage locations in current and additional markets, grow and manage growth profitably, maintain relationships with suppliers and obtain adequate supply of products and retain employees; (4) factors beyond our control that affect the number and timing of new restaurant openings, including weather conditions and factors under the control of landlords, contractors and regulatory and/or licensing authorities; (5) our ability to successfully improve performance and cost, realize the benefits of our marketing efforts and achieve improved results as we focus on developing new management and license deals; (6) changes in applicable laws or regulations; (7) the possibility that The ONE Group may be adversely affected by other economic, business, and/or competitive factors, including economic downturns; (8) the impact of actual and potential changes in immigration policies, including potential labor shortages; (9) the potential impact of the imposition of tariffs, including increases in food prices and inflation and any resulting negative impacts on the macro-economic environment; (10) risks related to our development and franchise partners; (11) risks related to geopolitical events; and (12) other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed for the year ended December 31, 2024 and Quarterly Reports on Form 10-Q.

Investors are referred to the most recent reports filed with the Securities and Exchange Commission by The ONE Group Hospitality, Inc. Investors are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

THE ONE GROUP HOSPITALITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except earnings per share and related share information)

For the three periods ended

December 28,

For the three months ended

December 31,

For the year ended

December 28,

For the year ended

December 31,

2025

2024

2025

2024

(unaudited)

(unaudited)

(unaudited)

Revenues:

Owned restaurant net revenue

$

203,033

$

217,799

$

791,762

$

658,915

Management, license, franchise and incentive fee revenue

3,981

4,081

13,960

14,429

Total revenues

207,014

221,880

805,722

673,344

Cost and expenses:

Owned operating expenses:

Owned restaurant cost of sales

39,857

44,323

163,579

138,794

Owned restaurant operating expenses

124,901

133,954

503,070

413,587

Total owned operating expenses

164,758

178,277

666,649

552,381

General and administrative (including stock-based compensation of $1,092 and $1,584 for the three periods and $5,440 and $6,017 for the years ended December 28, 2025 and December 31, 2024, respectively)

14,513

13,252

52,540

44,234

Depreciation and amortization

10,963

11,395

43,192

34,096

Transition and integration expenses

927

3,613

11,202

13,681

Loss on impairment of non-current assets

7,224

-

10,610

-

Lease termination and exit expenses

2,521

1,096

7,949

1,567

Pre-opening expenses

1,783

1,961

5,741

9,509

Transaction and exit costs

113

127

256

8,855

Other (income) expenses

(271)

46

(418)

124

Total costs and expenses

202,531

209,767

797,721

664,447

Operating income

4,483

12,113

8,001

8,897

Other expenses, net:

Interest expense, net of interest income

10,302

10,487

40,902

31,109

Loss on early debt extinguishment

-

-

-

4,149

Total other expenses, net:

10,302

10,487

40,902

35,258

Loss before provision (benefit) for income taxes

(5,819)

1,626

(32,901)

(26,361)

Provision (benefit) for income taxes

559

149

60,684

(8,434)

Net loss

(6,378)

1,477

(93,585)

(17,927)

Less: net loss attributable to noncontrolling interest

(6)

(140)

(1,344)

(829)

Net loss attributable to The ONE Group Hospitality, Inc.

$

(6,372)

$

1,617

$

(92,241)

$

(17,098)

Series A Preferred Stock paid-in-kind dividend and accretion

(8,955)

(7,479)

(33,218)

(19,142)

Net loss available to common stockholders

$

(15,327)

$

(5,862)

$

(125,459)

$

(36,240)

Net loss attributable to The ONE Group Hospitality, Inc. per share:

Basic loss per share

$

(0.49)

$

(0.19)

$

(4.05)

$

(1.16)

Diluted loss per share

$

(0.49)

$

(0.19)

$

(4.05)

$

(1.16)

Weighted average common shares outstanding:

Shares used in computing basic loss per share

31,110,558

30,850,443

31,015,129

31,154,765

Shares used in computing diluted loss per share

31,110,558

30,850,443

31,015,129

31,154,765

The following table sets forth certain statements of operations data as a percentage of total revenues for the periods indicated. Certain percentage amounts may not sum to total due to rounding.

For the three periods ended

December 28,

For the three months ended

December 31,

For the year ended

December 28,

For the year ended

December 31,

2025

2024

2025

2024

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Revenues:

Owned restaurant net revenue

98.1%

98.2%

98.3%

97.9%

Management, license, franchise and incentive fee revenue

1.9%

1.8%

1.7%

2.1%

Total revenues

100.0%

100.0%

100.0%

100.0%

Cost and expenses:

Owned operating expenses:

Owned restaurant cost of sales(1)

19.6%

20.4%

20.7%

21.1%

Owned restaurant operating expenses(1)

61.5%

61.5%

63.5%

62.8%

Total owned operating expenses(1)

81.1%

81.9%

84.2%

83.8%

General and administrative (including stock-based compensation of 0.5% and 0.7% for the three periods and 0.7% and 0.9% for the years ended December 28, 2025 and December 31, 2024, respectively)

7.0%

6.0%

6.5%

6.6%

Depreciation and amortization

5.3%

5.1%

5.4%

5.1%

Transition and integration expenses

0.4%

1.6%

1.4%

2.0%

Loss on impairment of non-current assets

3.5%

0.0%

1.3%

0.0%

Lease termination and exit expenses

1.2%

0.5%

1.0%

0.2%

Pre-opening expenses

0.9%

0.9%

0.7%

1.4%

Transaction and exit costs

0.1%

0.1%

0.0%

1.3%

Other (income) expenses

(0.1%)

0.0%

(0.1%)

0.0%

Total costs and expenses

97.8%

94.5%

99.0%

98.7%

Operating income

2.2%

5.5%

1.0%

1.3%

Other expenses, net:

Interest expense, net of interest income

5.0%

4.7%

5.1%

4.6%

Loss on early debt extinguishment

0.0%

0.0%

0.0%

0.6%

Total other expenses, net:

5.0%

4.7%

5.1%

5.2%

Loss before provision (benefit) for income taxes

(2.8%)

0.7%

(4.1%)

(3.9%)

Provision (benefit) for income taxes

0.3%

0.1%

7.5%

(1.3%)

Net loss

(3.1%)

0.7%

(11.6%)

(2.7%)

Less: net loss attributable to noncontrolling interest

0.0%

(0.1%)

(0.2%)

(0.1%)

Net loss attributable to The ONE Group Hospitality, Inc.

(3.1%)

0.7%

(11.4%)

(2.5%)

___________________________________

(1)

These expenses are being shown as a percentage of owned restaurant net revenue.

THE ONE GROUP HOSPITALITY, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share information)

December 28,

December 31,

2025

2024

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

4,168

$

27,576

Credit card receivable

19,480

10,477

Restricted cash and cash equivalents

499

499

Accounts receivable

15,389

12,294

Inventory

9,839

11,318

Other current assets

7,521

6,786

Due from related parties

—

376

Total current assets

56,896

69,326

Property and equipment, net

278,195

276,120

Operating lease right-of-use assets

253,228

260,331

Goodwill

155,783

155,783

Intangibles, net

128,988

133,111

Deferred tax assets, net

—

54,282

Other assets

8,852

9,030

Security deposits

2,254

2,097

Total assets

884,196

960,080

LIABILITIES, SERIES A PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

36,633

$

30,883

Accrued payroll expenses

19,286

23,897

Accrued expenses

46,356

48,339

Current portion of operating lease liabilities

13,803

15,294

Deferred gift card revenue and other

6,819

6,540

Current portion of long-term debt

9,302

6,125

Other current liabilities

1,017

313

Total current liabilities

133,216

131,391

Long-term debt, net of current portion, unamortized discount and debt issuance costs

334,013

328,110

Operating lease liabilities, net of current portion

293,985

293,490

Other long-term liabilities

6,319

5,758

Deferred tax liabilities, net

5,187

—

Total liabilities

772,720

758,749

Commitments and contingencies (Note 17)

Series A preferred stock, $0.0001 par value, 160,000 shares authorized; 160,000 issued and outstanding at December 28, 2025 and December 31, 2024

191,303

158,085

Stockholders’ (deficit) equity:

Common stock, $0.0001 par value, 75,000,000 shares authorized; 34,520,226 issued and 31,242,344 outstanding at December 28, 2025 and 33,994,140 shares issued and 31,037,843 outstanding at December 31, 2024

3

3

Preferred stock, other than Series A preferred stock, $0.0001 par value, 9,840,000 shares authorized; no shares issued and outstanding at December 28, 2025 and December 31, 2024, respectively

—

—

Treasury stock, at cost, 3,402,881 shares at December 28, 2025 and 3,019,654 shares at December 31, 2024

(19,308

)

(18,202

)

Additional paid-in capital

39,712

67,118

(Accumulated deficit) retained earnings

(93,216

)

—

Accumulated other comprehensive loss

(3,029

)

(3,028

)

Total stockholders’ (deficit) equity

(75,838

)

45,891

Noncontrolling interests

(3,989

)

(2,645

)

Total (deficit) equity

(79,827

)

43,246

Total liabilities, Series A preferred stock and stockholders' (deficit) equity

$

884,196

$

960,080

Reconciliation of Non-GAAP Measures

We prepare our financial statements in accordance with generally accepted accounting principles (GAAP). In this press release, we also make references to the following non-GAAP financial measures: total food and beverage sales at owned and managed units, Adjusted Operating Income, Adjusted EBITDA, Restaurant Operating Profit and Restaurant EBITDA.

Total food and beverage sales at owned and managed units. Total food and beverage sales at owned and managed units represents our total revenue from our owned operations as well as the revenue reported to us with respect to sales at our managed locations, where we earn management and incentive fees at these locations. We believe that this measure represents a useful internal measure of performance as it identifies total sales associated with our brands and hospitality services that we provide. Accordingly, we include this non-GAAP measure so that investors can review financial data that management uses in evaluating performance, and we believe that it will assist the investment community in assessing performance of restaurants and other services we operate, whether or not the operation is owned by us. However, because this measure is not determined in accordance with GAAP, it is susceptible to varying calculations and not all companies calculate these measures in the same manner. As a result, this measure as presented may not be directly comparable to a similarly titled measure presented by other companies. This non-GAAP measure is presented as supplemental information and not as an alternative to any GAAP measurements. The following table includes a reconciliation of our GAAP revenue to total food and beverage sales at our owned and managed units (in thousands):

For the three periods ended

December 28, 2025

For the three months ended

December 31, 2024

For the year ended

December 28, 2025

For the year ended

December 31, 2024

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Owned restaurant net revenue (1)

$

203,033

$

217,799

$

791,762

$

658,915

Management, license, franchise and incentive fee revenue

3,981

4,081

13,960

14,429

GAAP revenues

$

207,014

$

221,880

$

805,722

$

673,344

Food and beverage sales from managed units (1)

33,371

35,448

128,308

127,924

Total food and beverage sales at owned and managed units

$

236,404

$

253,247

$

920,070

$

786,839

___________________________________

(1)

Components of total food and beverage sales at owned and managed units.

The following table presents the elements of the quarterly and annual Same Store Sales measure for 2025:

2025 vs. 2024

Q1

Q2

Q3

Q4

YTD

US STK Owned Restaurants

(2.3)%

(4.9)%

(6.2)%

(0.7)%

(3.4)%

US STK Managed Restaurants

(12.7)%

(9.5)%

(4.7)%

4.2%

(4.6)%

US STK Total Restaurants

(3.6)%

(6.0)%

(5.8)%

0.3%

(3.7)%

Benihana Owned Restaurants

0.7%

0.4%

(4.0)%

(0.4)%

(0.8)%

Grill Concepts Core Owned Restaurants

(13.3)%

(14.0)%

(10.8)%

(8.1)%

(11.6)%

Grill Concepts Non-Core Owned Restaurants

(15.1)%

(17.3)%

(18.0)%

(16.5)%

(16.5)%

Grill Concepts Total Owned Restaurants

(13.7)%

(14.6)%

(11.8)%

(9.4)%

(12.5)%

Combined Same Store Sales

(3.2)%

(4.1)%

(5.9)%

(1.8)%

(3.7)%

Adjusted Operating Income. We define Adjusted Operating Income as operating income (loss) before transition and integration expenses, loss on impairment of non-current assets, lease termination and exit expenses and transaction and exit costs. Not all the aforementioned items defining Adjusted Operating Income occur in each reporting period but have been included in our definitions of terms based on our historical activity. Adjusted Operating Income has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP.

For the three

periods ended

December 28,

For the three

months ended

December 31,

For the year

ended

December 28,

For the year

ended

December 31,

2025

2024

2025

2024

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Operating income

$

4,483

$

12,113

$

8,001

$

8,897

Transition and integration expenses

927

3,613

11,202

13,681

Loss on impairment of non-current assets

7,224

-

10,610

-

Lease termination and exit expenses

2,521

1,096

7,949

1,567

Transaction and exit costs

113

127

256

8,855

Adjusted Operating Income

$

15,268

$

16,949

$

38,018

$

33,000

Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) before interest expense, provision for income taxes, depreciation and amortization, stock-based compensation, transition and integration expenses, loss on impairment of non-current assets, lease termination and exit expenses, transaction and exit costs, loss on early debt extinguishment, non-cash rent and the Adjusted EBITDA attributable to the closed Grill Concepts restaurants. Adjusted EBITDA has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of Net income (loss) to Adjusted EBITDA in this press release.

For the three

periods ended

December 28,

For the three

months ended

December 31,

For the year

ended

December 28,

For the year

ended

December 31,

2025

2024

2025

2024

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Net loss attributable to The ONE Group Hospitality, Inc.

$

(6,372)

$

1,617

$

(92,241)

$

(17,098)

Net loss attributable to noncontrolling interests

(6)

(140)

(1,344)

(829)

Net loss

(6,378)

1,477

(93,585)

(17,927)

Interest expense, net of interest income

10,302

10,487

40,902

31,109

Provision (benefit) for income taxes

559

149

60,684

(8,434)

Depreciation and amortization

10,963

11,395

43,192

34,096

EBITDA

15,446

23,508

51,193

38,844

Stock-based compensation

1,092

1,584

5,440

6,017

Transition and integration expenses

927

3,613

11,202

13,681

Loss on impairment of non-current assets

7,224

-

10,610

-

Lease termination and exit expenses (1)

2,521

1,096

7,949

1,567

Transaction and exit costs

113

127

256

8,855

Loss on early debt extinguishment

-

-

-

4,149

Non-cash rent (2)

286

339

(138)

1,334

Grill Concepts restaurants closed or to be closed (3)

645

697

2,163

1,434

Other (income) expenses

(271)

46

(418)

124

Adjusted EBITDA

27,983

31,010

88,257

76,005

Adjusted EBITDA attributable to noncontrolling interest

(93)

(29)

(644)

(416)

Adjusted EBITDA attributable to The ONE Group Hospitality, Inc.

$

28,076

$

31,039

$

88,901

$

76,421

(1)

Lease termination and exit expenses are costs associated with locations closed or to be closed.

(2)

Non-cash rent expense is included in owned restaurant operating expenses, pre-opening expenses and general and administrative expense on the consolidated statements of operations.

(3)

Grill Concepts restaurants closed or to be closed are comprised of Grill Concepts restaurants closed prior to December 28, 2025 or to be closed in the first quarter of 2026.

On January 1, 2025, the Company transitioned from a calendar-based fiscal year to a 52/53-week fiscal year. Beginning in 2025, the Company’s fiscal year ended on the last Sunday in December. The Company’s fiscal year ending December 28, 2025 contained 362 days due to the transition. The following unaudited pro forma results of operations for December 28, 2025 have been adjusted to reflect a 364-day year (in thousands):

For the three

periods ended

December 28,

For the year

ended

December 28,

2025

2025

(unaudited)

(unaudited)

Total revenues

$

212,761

$

814,188

Operating income

7,770

11,560

Loss before provision (benefit) for income taxes

(2,560)

(29,399)

Net loss attributable to The ONE Group Hospitality, Inc.

(2,800)

(88,251)

Adjusted EBITDA attributable to The ONE Group Hospitality, Inc.

31,396

92,538

The following table presents a reconciliation of Owned restaurant net revenue to Owned restaurant net revenue, excluding net revenue of Grill Concepts restaurants closed prior to December 28, 2025 or to be closed in the first quarter of 2026 for the periods indicated (in thousands):

For the three

periods ended

December 28,

For the three

months ended

December 31,

For the year

ended

December 28,

For the year

ended

December 31,

2025

2024

2025

2024

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Owned restaurant net revenue

$

203,033

$

217,799

$

791,762

$

658,915

Grill Concepts restaurants closed or to be closed owned restaurant net revenue(1) (2)

(3,728)

(11,343)

(24,085)

(37,906)

Owned restaurant net revenue, excluding Grill Concepts restaurants closed or to be closed

199,305

206,456

767,677

621,009

(1)

Grill Concepts restaurants closed or to be closed owned restaurant net revenue for the three periods ending March 30, 2025, June 29,2025, September 28, 2025 were $8.5 million, $7.4 million and $4.5 million, respectively.

(2)

Grill Concepts restaurants closed or to be closed owned restaurant net revenue for the three months ending March 31, 2024, June 30,2024, September 30, 2024 were $6.4 million, $9.7 million and $10.5 million, respectively.

Restaurant Operating Profit and Restaurant EBITDA. We define Restaurant Operating Profit as owned restaurant net revenue minus owned restaurant cost of sales and owned restaurant operating expenses. We define Restaurant EBITDA as Restaurant Operating Profit minus non-cash rent.

We believe Restaurant Operating Profit and Restaurant EBITDA are an important component of financial results because: (i) they are widely used metrics within the restaurant industry to evaluate restaurant-level productivity, efficiency, and performance, and (ii) we use Restaurant Operating Profit and Restaurant EBITDA as key metrics to evaluate our restaurant financial performance compared to our competitors. We use these metrics to facilitate a comparison of our operating performance on a consistent basis from period to period, to analyze the factors and trends affecting our business and to evaluate the performance of our restaurants.

The following table presents a reconciliation of Operating income to Restaurant Operating Profit and Restaurant EBITDA for the periods indicated (in thousands):

For the three

periods ended

December 28,

For the three

months ended

December 31,

For the year

ended

December 28,

For the year

ended

December 31,

2025

2024

2025

2024

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Operating income as reported

$

4,483

$

12,113

$

8,001

$

8,897

Management, license, franchise and incentive fee revenue

(3,981)

(4,081)

(13,960)

(14,429)

General and administrative

14,513

13,252

52,540

44,234

Depreciation and amortization

10,963

11,395

43,192

34,096

Transition and integration expenses

927

3,613

11,202

13,681

Loss on impairment of non-current assets

7,224

-

10,610

-

Lease termination and exit expenses

2,521

1,096

7,949

1,567

Pre-opening expenses

1,783

1,961

5,741

9,509

Transaction and exit costs

113

127

256

8,855

Grill Concepts restaurants closed or to be closed(1)

653

592

1,973

1,107

Other (income) expenses

(271)

46

(418)

124

Restaurant Operating Profit

38,928

40,114

127,086

107,641

Restaurant Operating Profit as a percentage of owned restaurant net revenue, excluding Grill Concepts restaurants closed or to be closed

19.5%

19.4%

16.6%

17.3%

Non-Cash Rent

(220)

273

(644)

621

Restaurant EBITDA

38,708

40,387

126,442

108,262

Restaurant EBITDA as a percentage of owned restaurant net revenue, excluding Grill Concepts restaurants closed or to be closed(1)

19.4%

19.6%

16.5%

17.4%

(1)

Grill Concepts restaurants closed or to be closed are comprised of Grill Concepts restaurants closed prior to December 28, 2025 or to be closed in the first quarter of 2026.

Restaurant Operating Profit by brand is as follows (in thousands):

For the three

periods ended

December 28,

For the three

months ended

December 31,

For the year

ended

December 28,

For the year

ended

December 31,

2025

2024

2025

2024

(unaudited)

(unaudited)

(unaudited)

(unaudited)

STK restaurant operating profit (Company owned)

$

13,617

$

11,337

$

37,888

$

38,106

STK restaurant operating profit (Company owned) as a percentage of STK revenue (Company owned)

23.0%

19.2%

17.9%

18.6%

Benihana restaurant operating profit (Company owned)(1)

$

23,098

$

24,858

$

80,684

$

58,133

Benihana restaurant operating profit (Company owned) as a percentage of Benihana revenue (Company owned)(1)

20.8%

21.6%

18.3%

19.6%

Core Grill Concepts restaurant operating profit(1)

$

2,337

$

3,096

$

8,989

$

10,390

Core Grill Concepts restaurant operating profit as a percentage of Core Grill Concepts revenue(1)

8.6%

10.5%

8.3%

9.3%

Non-core Grill Concepts restaurant operating profit excluding Grill Concepts restaurants closed or to be closed(1)

$

(178)

$

(87)

$

(772)

$

(192)

Non-core Grill Concepts restaurant operating profit as a percentage of Non-core Grill Concepts revenue, excluding Grill Concepts restaurants closed or to be closed(1) (2)

(13.9%)

(5.0%)

(14.6%)

(3.2%)

(1)

In 2024, Benihana and RA Sushi, which is within Grill Concepts, only includes the post-acquisition time period of May 1, 2024 through December 31, 2024 while 2025 includes the full year.

(2)

Grill Concepts restaurants closed or to be closed are comprised of Grill Concepts restaurants closed prior to December 28, 2025 or to be closed in the first quarter of 2026.

Restaurant EBITDA by brand is as follows (in thousands):

For the three

periods ended

December 28,

For the three

months ended

December 31,

For the year

ended

December 28,

For the year

ended

December 31,

2025

2024

2025

2024

(unaudited)

(unaudited)

(unaudited)

(unaudited)

STK restaurant EBITDA (Company owned)

$

13,235

$

11,000

$

36,868

$

36,892

STK restaurant EBITDA (Company owned) as a percentage of STK revenue (Company owned)

22.3%

18.6%

17.5%

18.0%

Benihana restaurant EBITDA (Company owned)(1)

$

23,522

$

25,401

$

82,365

$

59,608

Benihana restaurant EBITDA (Company owned) as a percentage of Benihana revenue (Company owned)(1)

21.1%

22.0%

18.6%

20.1%

Core Grill Concepts restaurant EBITDA(1)

$

2,035

$

3,096

$

7,524

$

10,589

Core Grill Concepts restaurant EBITDA as a percentage of Core Grill Concepts revenue(1)

7.5%

10.5%

6.9%

9.5%

Non-core Grill Concepts restaurant EBITDA excluding Grill Concepts restaurants closed or to be closed(1)

$

(139)

$

(339)

$

(613)

$

(325)

Non-core Grill Concepts restaurant EBITDA as a percentage of Non-core Grill Concepts revenue, excluding Grill Concepts restaurants closed or to be closed(1)

(10.8%)

(19.5%)

(11.6%)

(5.4%)

(1)

In 2024, Benihana and RA Sushi, which is within Grill Concepts, only includes the post-acquisition time period of May 1, 2024 through December 31, 2024 while 2025 includes the full year.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260312698192/en/
Investors:

ICR

Michelle Michalski or Raphael Gross

(646) 277-1224

Michelle.Michalski@icrinc.com

Media:

ICR

Seth Grugle

(646) 277-1272

seth.grugle@icrinc.com

Original: The ONE Group Reports Fourth Quarter and Full Year 2025 Financial Results