STKS

Download the Complete Report Here Key Takeaways 2Q26 marked a meaningful operating inflection as comparable sales returned to growth and transactions turned positive across all three segments despite the revenue impact from planned closures and relocation timing. STKS reported 2Q26 revenue of $200.5 million, down 3.3% y/y from $207.4 million and slightly below the prior $202-$206 million guidance range, while company-owned restaurant net revenue declined 3.2% to $197.3 million from $203.9 million. The decline primarily reflected permanent and temporary Grill Concepts closures and the delayed downtown New York STK relocation, partly offset by new openings and 0.9% consolidated comparable-sales growth. Comparable sales improved from a 0.3% decline in 1Q26 and a 1.8% decline in 4Q25, while transactions were positive across STK, Benihana and Grill Concepts, supporting continued relative market-share gains despite a mixed consumer backdrop. Management, license, franchise and incentive fee revenue declined to $3.2 million from $3.5 million, mainly due to the 2Q25 exit from the Scottsdale management agreement. STK led the comparable-sales recovery, while Benihana remained resilient and Grill Concepts improved again sequentially following the portfolio rationalization. Total U.S. STK comparable sales increased 3.2% in 2Q26, including 2.5% growth at company-owned restaurants and 6.4% growth at managed restaurants, bringing total U.S. STK comparable sales growth to 2.2% for the first half. Benihana comparable sales increased 0.8%, improving from approximately flat performance in 1Q26 and a 0.4% decline in 4Q25. Grill Concepts comparable sales declined 2.9%, but improved from declines of 5.3% in 1Q26 and 9.4% in 4Q25, while transactions turned positive across the retained portfolio. The improving cadence indicates that the underlying business has stabilized materially since late 2025, with traffic trends strengthening even as consumers remain selective on overall spend. Restaurant-level profitability expanded meaningfully as procurement savings and Benihana integration benefits more than offset higher marketing and maintenance investment. Company-owned restaurant cost of sales improved 170 bps to 19.5% of owned restaurant net revenue from 21.2% in 2Q25, supported by acquisition synergies, supply-chain initiatives, menu optimization and increased pricing. Cost of sales has now improved from 25.5% in 2021 to 19.5% in 2Q26, a cumulative reduction of 600 bps, supporting the view that the improvement reflects sustained operating and procurement efficiencies rather than a one-quarter commodity benefit. Owned restaurant operating expenses increased 50 bps to 64.0% from 63.5%, reflecting higher World Cup-related marketing and additional repair and maintenance spending to expand air-conditioning capacity at select Benihana locations. Nevertheless, total owned operating expenses improved 110 bps to 83.6% from 84.7%, driving restaurant operating profit to $32.4 million and margin expansion to 16.4% from 15.3%. Operating income improved sharply as stronger restaurant-level profitability and lower integration costs more than offset higher marketing, technology and corporate spending. Operating income increased to $6.6 million from $0.7 million in 2Q25, reflecting the 110-bp restaurant-margin improvement and a decline in transition and integration expense to $0.2 million from $3.9 million. Lease termination and restaurant closure expense fell to $0.9 million from $5.6 million, while depreciation and amortization remained broadly stable at $11.0 million versus $10.9 million. These benefits were partly offset by pre-opening expense of $2.9 million, up from $1.6 million, including costs associated with STK Phoenix, the delayed Chelsea opening and approximately $1.1 million of non-cash pre-opening rent. The significant improvement in GAAP operating income indicates that transaction and integration costs are largely rolling off, while procurement and operating synergies from the Benihana acquisition continue to support restaurant margins. Temporary external factors and the delayed STK relocation constrained 2Q26 sales and EBITDA, while early 3Q26 trends suggest these pressures have moderated. World Cup matches shifted dining occasions toward at-home viewing during evening and weekend periods that overlap with STKS’ highest-volume dayparts, while elevated temperatures reduced Benihana traffic in several Midwest and Northeast markets. The downtown New York STK relocation was expected to open at the beginning of 2Q26 but did not begin operating until July because of permitting and inspection delays. The relocated Chelsea restaurant is expected to generate approximately $150,000-$200,000 of weekly revenue, while most labor and pre-opening costs remained in the expense base during the delay. Approximately 40% of the adjusted EBITDA shortfall versus guidance was attributed to the relocation delay and roughly 60% to incremental marketing, with revenue also finishing near the low end of expectations. Traffic momentum continued into July following the end of the World Cup, while Las Vegas remained a notable area of strength with continued high sales velocity. Positive traffic alongside more modest comparable-sales growth indicates that STKS is gaining visits but remains exposed to a selective consumer spending environment. Guests continue to respond to lower-price-point access across the portfolio while remaining selective about premium spending outside celebration occasions, creating a gap between transaction and sales growth. STKS’ barbell strategy is designed for this environment: the $3, $6 and $9 happy hour and Weeknights Date Nights support traffic during slower weekday periods, while premium steak, seafood and beverage offerings capture higher-intent celebration spending. Mother’s Day, Father’s Day and graduation demand performed well across the portfolio, reinforcing the brands’ positioning as celebration destinations. The Friends with Benefits loyalty program continues to gain traction, with newly enrolled guests showing strong repeat participation and loyalty members spending meaningfully more per visit than non-members, while the program represents an increasing share of quarterly transactions. Seasonal menu innovation, including Wagyu offerings, premium cocktails and wellness-oriented additions, together with expansion of the high-margin off-premise channel, provides additional opportunities to support traffic, mix and guest engagement. Beef-cost visibility has extended through year-end, reducing a key 2H margin risk. STKS had previously contracted beef pricing through September 2026 and has now secured a significant portion of its requirements through the balance of the year. Cost of sales is expected to remain near the current 19.5% level, with no material negative beef impact anticipated during 2H26. The company continues to benefit from consolidated beef procurement, vendor scale and menu engineering, supporting greater cost visibility despite continued commodity volatility. Maintaining cost of sales near 19.5% will be important as 3Q historically represents the lowest-margin quarter, with owned operating expenses guided to 85%-87% of owned restaurant net revenue. STKS maintained its 6 to 10 venue opening target for 2026, but shifted the majority of the remaining pipeline toward asset-light formats to prioritize free cash flow and returns over owned revenue growth. The remaining development pipeline is now weighted toward franchised and licensed locations, materially changing the ownership mix without reducing the system-wide opening target. The company opened STK Downtown Phoenix in June, relocated STK Downtown New York to Chelsea in July and converted Kona Grill Riverton into a Benihana in July. Phoenix and Chelsea each required $1.0 million or less of net company investment after tenant-improvement allowances, while future company-owned projects generally target no more than $1.5 million of net investment. STKS is also prioritizing its existing lease pipeline over substantial new company-owned commitments, supporting greater capital flexibility, free cash flow generation and debt reduction. The lower 2026 revenue guidance primarily reflects this shift toward asset-light development and deferred conversion timing, together with a modest reduction in comparable-sales expectations, rather than a broad deterioration in underlying traffic trends. Benihana Express is emerging as a scalable, capital-light growth platform, supported by proven unit economics, a standardized prototype and increasing franchise interest. Following the acquisition of the Miami Benihana Express location, STKS has spent approximately three months refining the branding, restaurant design and operating model, creating a standardized prototype to support broader franchise expansion. The concept operates in an 800-1,000 sq. ft. footprint, with food and labor costs of approximately 20% and 25%, respectively, supporting a prime margin above 50%. The existing Miami location is generating approximately $1.2 million of annual revenue, while development costs are expected at roughly $500 per sq. ft., or approximately $0.4-$0.5 million for a typical unit. A company-owned Denver location and a licensed Florida Keys location are under development, while additional franchise interest has emerged following completion of the prototype. Future agreements are expected to generate a 6% royalty plus a 2% marketing contribution, implying approximately $72,000 of annual royalty revenue per unit at a $1.2 million AUV and supporting meaningful scalability with limited incremental capital. The broader asset-light pipeline is also expanding, with two licensed STK locations planned at a major U.S. airport, RA Sushi Niagara Falls, and franchised Benihana and licensed Benihana Express locations in the Florida Keys, supporting approximately $14 million of managed, franchise and licensing revenue expected in 2026. Grill portfolio rationalization is progressing, although conversion timing has shifted later while improving traffic reduces the need for additional closures. STKS continues converting selected Grill locations into higher-return STK and Benihana restaurants, with five Grill locations temporarily closed in January 2026 for conversion, two conversions now reopened and Baltimore expected to reopen in 3Q26. Remaining projects have shifted toward year-end and could move to franchised formats, lowering near-term owned revenue and capital requirements. No additional Grill closures are currently planned, with future reviews generally tied to one to two lease expirations annually. Grill comparable sales improved to -2.9% from -5.3% in 1Q26 and transactions turned positive, although restaurant operating profit declined to $1.2 million from $2.2 million y/y, indicating that profitability has not yet fully recovered. STKS continues to execute against four strategic priorities centered on traffic growth, capital-efficient expansion, portfolio optimization and balance-sheet improvement. The 2Q26 results showed progress across each, with positive transactions, improving margins, lower capital deployment and continued debt reduction. Underlying earnings improved materially in 2Q26, although the capital structure continues to constrain common equity earnings. Net loss attributable to The ONE Group narrowed significantly to $2.1 million from $10.1 million in the prior-year period, reflecting improved restaurant-level profitability and lower transition and integration costs. However, net loss available to common shareholders remained elevated at $12.0 million versus $18.2 million in the prior year, as $9.9 million of Series A preferred stock paid-in-kind dividends and accretion materially reduced earnings available to common shareholders. Updated 2026 guidance continues to prioritize free cash flow generation and capital discipline while maintaining modest top-line growth. Management guided for 2026 revenue of $805-$820 million, implying consolidated comparable-sales growth of 1%-2%, alongside approximately $14 million of managed, franchise and licensing revenue. Owned restaurant operating expenses are expected to remain around 82% of restaurant revenue, while Adjusted EBITDA is guided to $95-$105 million and adjusted G&A to approximately $50 million. The company also expects net capital expenditures of approximately $30 million, down from the prior $38-$42 million range and consistent with the shift toward more asset-light development. Liquidity remains adequate, but the still-heavy capital structure reinforces the importance of sustained cash generation and disciplined capital allocation. STKS ended 2Q26 with $17.1 million of cash and short-term credit-card receivables and $28.7 million of revolver availability, representing $45.8 million of short-term liquidity. The term facility currently has no active financial covenant under prevailing conditions, reducing near-term covenant risk and providing flexibility as the company shifts development toward franchise and licensing models. However, STKS still carries approximately $347.7 million of gross debt and $210.6 million of Series A preferred stock, which increased from $191.3 million at year-end through $19.3 million of first-half paid-in-kind dividends and accretion. The preferred carries a 13% starting dividend rate that compounds over time, further reinforcing debt reduction and balance-sheet improvement as key capital-allocation priorities. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. Valuation remains attractive as the operating thesis increasingly shifts from recovery toward cash conversion and capital efficiency. Positive traffic across all segments, improving restaurant margins and continued Benihana synergies are strengthening the earnings base, while the move toward asset-light development and Benihana Express should reduce capital intensity and improve returns on growth. At the same time, higher operating cash flow and lower capex are supporting debt reduction, creating a clearer path to lower interest expense and improved earnings conversion. If STKS can sustain positive comparable sales, deliver within its $95-$105 million 2026 Adjusted EBITDA guidance range and continue deleveraging, the current discount to historical and peer multiples should have room to narrow. P/S Multiple analysis. STKS currently trades at approximately 0.07x forward P/S, near the bottom of its three-year range and well below the 0.19x three-year mean. As fundamentals strengthen and free cash flow increasingly supports deleveraging, the stock could see multiple expansion over time. Illustratively, a reversion to mean to 0.19x P/S would imply a value of approximately $4.9/share based on current forward revenue estimates. Peer analysis (relative valuation). Peer valuation also suggests meaningful discounting. As of the 8/7 close, STKS traded at 6.1x EV/NTM EBITDA, representing a ~51% discount to the 12.4x peer average. Its 0.7x EV/NTM Sales multiple also represents an approximately 48% discount to the 1.4x industry average. While elevated debt, preferred equity and execution risk justify some discount, sustained traffic growth, margin expansion and stronger free cash flow conversion could support a narrowing of the gap. Read Exec Edge’s Initiation on The ONE Group Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post The ONE Group: A Restaurant Stock With Rising Traffic, Expanding Margins – Quarterly Update Report appeared first on ExecEdge.

Interested in The ONE Group Hospitality, Inc.? Here are five stocks we like better. Second-quarter revenue fell 3.3% to $200.5 million, mainly because of restaurant closures and the delayed relocation of STK’s downtown New York site. Comparable sales rose 0.9%, with positive transaction growth across all segments. Profitability improved despite lower sales: restaurant operating margins expanded 110 basis points to 16.4%, operating income increased to $6.6 million, and the net loss narrowed to $2.1 million. However, adjusted EBITDA declined 9.7% to $21.1 million due largely to increased marketing and corporate expenses. ONE Group strengthened cash generation and emphasized asset-light growth, producing $32 million in first-half operating cash flow and repaying more than $6 million of debt. For 2026, it expects revenue of $805 million to $820 million and adjusted EBITDA of $95 million to $105 million. ONE Group Hospitality (NASDAQ:STKS) reported second-quarter revenue declined from a year earlier, as planned restaurant portfolio optimization and a delayed New York City relocation weighed on reported sales. However, the company said comparable sales, transactions and restaurant-level margins improved across its operating segments. Total GAAP revenue for the second quarter was $200.5 million, down 3.3% from $207.4 million in the prior-year quarter. Company-owned restaurant net revenue declined 3.2% to $197.3 million, primarily reflecting closed Grill Concepts locations, partly offset by comparable-sales gains and contributions from restaurants opened since July 2025. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Comparable restaurant sales increased 0.9%, with U.S. STK restaurants up 3.2% and Benihana locations up 0.8%. President and CEO Manny Hilario said all segments delivered positive transaction growth during the quarter. Restaurant operating profit rose to $32.4 million, representing 16.4% of company-owned restaurant net revenue, compared with 15.3% a year earlier. Consolidated restaurant operating profit margin improved 110 basis points. → 3 Drone Stocks That Should Soar After the Summer Slump The STK segment expanded its margin by 130 basis points to 17.4%, while Benihana’s margin rose 90 basis points to 18.9%. Hilario described Benihana as the company’s strongest margin segment. Chief Financial Officer Nicole Thaung said company-owned restaurant cost of sales improved by 170 basis points to 19.5% of net revenue, from 21.2% in the prior-year period. The improvement reflected integration synergies, supply-chain initiatives, menu optimization and increased menu pricing, she said. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Company-owned restaurant operating expenses increased 50 basis points to 64% of revenue. Thaung attributed the increase to additional marketing spending intended to support traffic during the World Cup and repair and maintenance spending to increase air-conditioning capacity at Benihana restaurants amid summer heat. On a combined basis, total company-owned operating expenses, including cost of sales, improved 110 basis points to 83.6% of revenue. Operating income was $6.6 million, compared with $700,000 a year earlier. Net loss attributable to The ONE Group was $2.1 million, narrowing from a $10.1 million loss in the prior-year quarter. Net loss available to common stockholders was $12 million, compared with $18.2 million a year earlier. Adjusted EBITDA was $21.1 million, down 9.7% from $23.4 million in the prior-year quarter. Thaung said the adjusted EBITDA decline reflected higher marketing investment and increased general and administrative expense excluding stock-based compensation. General and administrative costs increased to $14 million from $11.7 million, driven by salary inflation, higher bonus expense, planned information-technology and AI-related investments, and greater travel expenses. Hilario said the relocation of the company’s original downtown New York STK restaurant to Chelsea had been expected to open at the beginning of the second quarter but instead opened in July. The delay was largely due to challenges obtaining inspections and clearances in New York City, he said. The relocated restaurant is expected to produce revenue of approximately $150,000 to $200,000 per week, according to Hilario. He said the company had already staffed the location, meaning that while direct costs such as food and operating supplies were avoided during the delay, much of the labor-related cost base had already been incurred. When asked about the gap between second-quarter EBITDA guidance and reported results, Hilario estimated that about 40% of the shortfall was associated with the New York relocation and about 60% was attributable to marketing spending. He also noted that revenue came in toward the low end of the company’s guidance range. The company generated $32 million in operating cash flow during the first six months of 2026, nearly triple the $11 million generated in the same period of 2025. Year-to-date net capital expenditures declined approximately 38% from the prior-year first half. ONE Group ended the quarter with $17.1 million in cash and short-term credit-card receivables and $28.7 million available under its revolving credit facility, subject to certain conditions. The company repaid more than $4 million on its term loan and $2 million on its revolving facility during the first half. Management emphasized a move toward capital-efficient and asset-light expansion. The company opened STK Downtown Phoenix in June and relocated the downtown New York STK restaurant to Chelsea in July, with each project costing $1 million or less after tenant improvements. It also converted a Kona Grill in Riverton, Utah, into a Benihana location in July. The company expects to open six to 10 venues in 2026, with most planned openings characterized as asset-light and requiring little or no upfront corporate investment. It also signed a license agreement for an RA Sushi location in Niagara Falls, Canada, expected to open by year-end, and said an STK and Kona Grill Bistro project is under construction in Baltimore. Hilario highlighted Benihana Express as a potential franchise growth vehicle. The format operates in an approximately 800- to 1,000-square-foot footprint and has generated annual revenue above $1 million at its existing Miami location. The company expects a company-owned Denver location and a licensed Florida Keys location to open by year-end. Hilario said Benihana franchise agreements generally generate a 6% royalty and a 2% marketing contribution. For the third quarter, ONE Group projected revenue of $176 million to $180 million, consolidated comparable sales of flat to 2%, and adjusted EBITDA of $12 million to $15 million. It expects company-owned operating expenses to represent 85% to 87% of company-owned restaurant net revenue during the period. For fiscal 2026, the company forecast revenue of $805 million to $820 million, reflecting anticipated comparable-sales growth of 1% to 2%. It projected adjusted EBITDA of $95 million to $105 million, capital expenditures net of landlord allowances of approximately $30 million, and pre-opening expense of $6.5 million to $7.5 million. Hilario said the company saw continued momentum entering the third quarter and expects the conclusion of World Cup broadcasts to be beneficial. He said the company’s value-oriented promotions and premium dining offerings allow it to address both consumers seeking lower-priced occasions and guests willing to trade up for celebrations and higher-end menu items. ONE Group Hospitality Inc is a full-service hospitality company primarily engaged in the development, ownership and operation of upscale restaurant and lounge concepts. The company's flagship brand, STK, combines a modern steakhouse menu with a high-energy lounge atmosphere, offering signature cuts of beef, fresh seafood, sushi selections, craft cocktails and an extensive wine program. ONE Group's concept emphasizes a seamless blend of fine dining and nightlife, catering to guests seeking both culinary excellence and an immersive social experience. Headquartered in El Segundo, California, ONE Group deploys a mixed model of company-owned and franchised locations across multiple markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ONE Group Hospitality Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved positive transaction growth across all segments, including STK and Benihana, despite a mixed consumer environment and temporary external headwinds. Expanded consolidated restaurant-level operating profit margins by 110 basis points to 16.4% through operational discipline and integration synergies. Attributed the 3.2% revenue decline to the planned optimization of the growth concepts portfolio and the delayed relocation of the STK Downtown New York site. Leveraged a 'barbell strategy' to capture both value-seeking guests via happy hour programming and premium diners through high-end steak and seafood offerings. Successfully reduced year-to-date net capital expenditures by approximately 38% while nearly tripling operating cash flow compared to the prior year. Implemented menu innovations, including white-glove cuts and wellness-focused options like quinoa, to align with evolving guest dietary trends and GLP-related preferences. Prioritizing an asset-light development pipeline for 2026, targeting 6 to 10 new venues with a focus on locations requiring $1.5 million or less in net capital. Accelerating the Benihana Express brand, which features a small 800-1,000 square foot footprint and high prime margins exceeding 50%. Revised full-year 2026 revenue guidance to $805 million-$820 million, reflecting the strategic shift toward franchising and lower comparable sales expectations. Committed to using significant free cash flow generation for debt reduction and potential refinancing of credit facilities on more favorable terms. Anticipating third-quarter consolidated comparable sales growth between 0% and 2%, with total GAAP revenue projected between $176 million and $180 million. The STK Downtown New York relocation was delayed from Q2 to July due to difficulties securing municipal inspections during the a championship run in New York City. Second-quarter comparable sales were modestly impacted by the World Cup as consumers shifted dining occasions to watch matches during peak restaurant hours. Elevated temperatures in select markets created temporary traffic headwinds for Benihana, though management noted these conditions did not persist into Q3. Increased marketing spend and higher repair and maintenance costs for air conditioning units during heatwaves impacted adjusted EBITDA margins. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management estimated the delay resulted in a loss of $150,000 to $200,000 in weekly revenue while maintaining full staffing costs throughout the quarter. The relocation delay accounted for approximately 40% of the EBITDA miss relative to previous guidance. The $35 million revenue guidance reduction is primarily driven by the pivot to an asset-light model, favoring royalties over company-owned restaurant sales. CapEx guidance was reduced from $40 million to $30 million to prioritize free cash flow and debt repayment over aggressive physical expansion. The concept delivers over $1 million in annual revenue from a small footprint with favorable food and labor costs (20-25% each). Management believes the model is highly marketable to franchisees due to its simple operational requirements and lack of a traditional chef requirement. The company has locked in a significant portion of its beef supply through the end of the year, mitigating risks of commodity price volatility. Cost of goods sold (COGS) is expected to remain stable around 19.5% for the remainder of the fiscal year.

Positive Comparable Sales, Positive Transactions Across All Business Segments Capital Expenditures, Net of Tenant Improvement Allowances, Reduced 38% Year-Over-Year as Company Prioritizes Capital-Efficient Growth and Free Cash Flow Generation DENVER, August 05, 2026--(BUSINESS WIRE)--The ONE Group Hospitality, Inc. ("The ONE Group" or the "Company") (Nasdaq: STKS) today reported its financial results for the second quarter ended June 28, 2026. Highlights for the second quarter 2026 compared to the same quarter in 2025 are as follows: Total GAAP revenues decreased 3.3% to $200.5 million from $207.4 million, due to the impact of permanent and temporary restaurant closures Consolidated comparable sales* increased 0.9% GAAP operating income increased to $6.6 million from $0.7 million Restaurant operating profit** increased by 110 basis points to 16.4% of owned restaurant net revenue from 15.3% Year-to-date net cash provided by operating activities improved $21.7 million to $33.0 million from $11.3 million "Our second quarter results underscore the momentum we are building across the portfolio, driven by the continued strength of our Vibe Dining brands. Consolidated comparable sales were positive, with positive transaction growth across all segments. STK posted a strong comparable sales performance of 3.2%. We completed the relocation of our STK Downtown New York restaurant from Little West 12th to 15th Street, with the restaurant having been closed for most of the second quarter due to the transition," said Emanuel "Manny" Hilario, President and CEO of The ONE Group. "Quarterly margin performance was strong, with the consolidated margin expanding 110 basis points to 16.4%. These results reflect the continued execution of our operational and strategic initiatives across the portfolio," Hilario continued. "We remain focused on capital-efficient growth and portfolio optimization. During the quarter, we signed a new development agreement for two licensed STK locations at a major U.S. airport. We are also very excited about the expansion of the Benihana Express brand, a small footprint, fast casual version of the Benihana that you crave. Both of these are great examples of our asset-light strategy in action, which continues to gain traction with additional openings planned for the second half of the year. With this approach, we will be able to reduce capital expenditures while sustaining our development pipeline, further strengthening our balance sheet. Going forward, we remain committed to disciplined capital allocation and operational excellence as the foundation for building long-term shareholder value," Hilario concluded. Grill Concepts Portfolio Optimization Temporarily closed three Kona Grill restaurants and two RA restaurants in January 2026 for conversion to Benihana or STK formats The conversion of the Riverton Kona Grill to Benihana was completed on July 31, 2026 and is now re-opened to the public The Kona Grill Baltimore conversion is expected to re-open as an STK in the third quarter Conversion economics: approximately $1.0 to $1.5 million, net build-out cost per conversion with a one-year payback Expected outcome: 100% profitable Grill portfolio with enhanced margins Capital Efficiency Focus Significant reduction in discretionary capital expenditures to increase free cash flow to strengthen the balance sheet Prioritizing asset-light and conversion-driven growth with emphasis on franchising and licensing opportunities Targeting new company-owned openings averaging $1.5 million, net or less in build-out costs Benihana Express Expansion Your Benihana fix on the go: a fast casual version of Benihana 800-1,000 square foot space with strong margins at a lower build-out cost One Company-owned restaurant open; one Company-owned restaurant under construction; one franchised restaurant in development 2026 Completed Restaurant Development 2026 Remaining Restaurant Pipeline Currently Under Construction (3 locations): Owned STK restaurant in Baltimore, Maryland (conversion of a temporarily closed Kona Grill restaurant) Owned Kona Grill Bistro in Baltimore, Maryland Owned Benihana Express restaurant in Denver, Colorado Asset-Light Expansion Highlights: Franchised Benihana in the Florida Keys Licensed Benihana Express in the Florida Keys Two-venue agreement for licensed STKs in a major U.S. airport Licensed RA Sushi at Niagara Falls Liquidity As of June 28, 2026, the Company held $17.1 million in cash and short-term credit card receivables and had $28.7 million available under its revolving credit facility, or a total of $45.8 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 third quarter financial targets and updating its full year financial targets, reflecting the emphasis on expanding free cash flow through reduced capital expenditures, benefits of portfolio optimization, operational improvements, and continued Benihana integration synergies. 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 13760695. The replay will be available until Wednesday, August 19, 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, a Japanese fusion 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. 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 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 portfolio optimization, restaurant openings, the impact of the Benihana acquisition 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 28, 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 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. 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): The following table presents a reconciliation of Owned restaurant net revenue for the six periods ended June 28, 2026 to the six periods ended June 29, 2025 (in thousands): The following table presents the elements of the quarterly and annual Same Store Sales measure for 2025 and 2026: Adjusted EBITDA. We define Adjusted EBITDA as net (loss) 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, and loss on early debt extinguishment. 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): 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): Restaurant operating profit by brand is as follows (in thousands): Restaurant EBITDA by brand is as follows (in thousands): View source version on businesswire.com: https://www.businesswire.com/news/home/20260805678388/en/ Contacts Investors: ICRMichelle Michalski or Raphael Gross(646) [email protected] Media: ICRSeth Grugle(646) [email protected]

DENVER, August 03, 2026--(BUSINESS WIRE)--The ONE Group Hospitality, Inc. ("The ONE Group" or the "Company") (Nasdaq: STKS) today announced that Emanuel "Manny" Hilario, President and Chief Executive Officer, and Nicole Thaung, Chief Financial Officer, will host a conference call and webcast to discuss second quarter 2026 financial results on Wednesday, August 5, 2026, at 4:30 PM ET. A press release containing the second quarter 2026 financial results will be issued after market close that same afternoon. 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 13760695. The replay will be available until Wednesday, August 19, 2026. The webcast can be accessed from the Investor Relations tab of The ONE Group’s website at http://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 the Benihana brand was honored in Forbes Best Brands for Value in 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, a Japanese fusion 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260803177258/en/ Contacts Investors:ICRMichelle Michalski or Raphael [email protected] Media:ICRJudy [email protected]

Starbucks (SBUX) came out with quarterly earnings of $0.85 per share, beating the Zacks Consensus Estimate of $0.66 per share. This compares to earnings of $0.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +28.79%. A quarter ago, it was expected that this coffee chain would post earnings of $0.44 per share when it actually produced earnings of $0.5, delivering a surprise of +13.64%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Starbucks, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $9.32 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.22%. This compares to year-ago revenues of $9.46 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Starbucks shares have added about 22.4% since the beginning of the year versus the S&P 500's gain of 8.5%. While Starbucks has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Starbucks was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.68 on $9.45 billion in revenues for the coming quarter and $2.41 on $38.23 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, The ONE Group Hospitality, Inc. (STKS), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of -520%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. The ONE Group Hospitality, Inc.'s revenues are expected to be $203.32 million, down 2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Starbucks Corporation (SBUX) : Free Stock Analysis Report The ONE Group Hospitality, Inc. (STKS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Download the Complete Report Here Key Takeaways Revenue and comparable sales were modestly impacted by softer traffic at certain STK mall locations and holiday timing shifts, though trends improved sequentially exiting the quarter. Benihana synergies, procurement efficiencies, and disciplined execution drove 100 bps of restaurant margin expansion and 12.1% Adjusted EBITDA growth despite ongoing closures. Traffic trends turned positive entering 2Q26 as loyalty, happy hour, and Power Lunch initiatives gained traction across brands. Portfolio optimization initiatives continued advancing, with five Grill conversions expected to reopen by year-end 2026 at attractive returns. Shares remain materially discounted relative to improving free cash flow generation, expanding margin visibility, and continued deleveraging potential. Revenue and comparable sales were impacted by softer traffic at certain STK mall locations and holiday timing shifts, though trends improved sequentially exiting the quarter. STKS reported 1Q26 revenue of $212.8 million, up 0.8% y/y but below the guided range of $217-$221 million, while company-owned restaurant net revenue increased 0.9% to $209.3 million. Consolidated comparable sales declined 0.3%, representing an improvement from the 1.8% decline reported in 4Q25 and continuing the positive trajectory exiting fiscal 2025. Management noted that softer traffic at several mall-based STK locations and broader calendar-related timing shifts created modest pressure on quarterly performance relative to expectations, although momentum improved materially exiting the quarter. Importantly, management noted that comparable sales and transaction trends turned positive entering 2Q26, suggesting recent improvement is being driven increasingly by traffic rather than pricing. Franchise and incentive fee revenue moderated due to lower contributions from managed STK locations in North America. Management, licensing and incentive fee revenues decreased to $3.5 million in 1Q26 compared with $3.7 million in the prior-year quarter, reflecting exit of management agreement in Scottsdale, Arizona in 2Q25. Margins expanded meaningfully on procurement synergies, favorable beef sourcing, and disciplined cost management, while EBITDA growth and lower capex continued supporting free cash flow generation and deleveraging. Company-owned restaurant cost of sales improved 140 bps y/y to 19.4% of restaurant revenue from 20.8% in the prior-year period, driven by procurement synergies, menu optimization, favorable beef sourcing, operational efficiencies, and improved PMIX management. Operating income increased 30% y/y, while adjusted EBITDA grew 12.1%. Capital expenditures, net of tenant improvement allowances, declined 23% y/y as the company prioritized capital-efficient growth. Comparable sales and transaction trends turned positive entering 2Q26 across the broader portfolio, reinforcing confidence in the underlying trajectory of the business. Both STK and Benihana generated positive comparable sales entering 2Q26, while management highlighted positive transaction trends across the portfolio. Importantly, management noted that recent comparable sales improvement is being driven increasingly by traffic rather than pricing, representing a notable shift relative to broader industry trends. The quarter also benefited from approximately $8.3 million of incremental revenue associated with the fiscal calendar shift that moved New Year’s Eve into fiscal 2026, partially offset by approximately $1.8 million of lost revenue associated with closed Grill Concept locations. Benihana continued functioning as a stabilizing higher-margin asset within the broader portfolio while integration initiatives drove additional operational improvement. Benihana comparable sales were ~flat during 1Q26 following a 0.4% decline in 4Q25 and a 4.0% decline in 3Q25, reflecting stabilizing traffic and resilient guest demand. Restaurant operating profit margins at Benihana expanded 130 bps to approximately 21%, driven by procurement synergies, labor optimization, improved scheduling, and supply-chain efficiencies. The segment continues benefiting from procurement scale associated with the Benihana acquisition, particularly across beef sourcing and broader vendor consolidation initiatives. Grill Concepts trends continued improving sequentially. Grill Concepts comparable sales declined 5.3% in 1Q26 compared to declines of 9.4% in 4Q25 and 11.8% in 3Q25, representing the strongest quarterly performance since 2023. Importantly, management noted that transactions within the Grill portfolio turned positive during the quarter, suggesting that traffic stabilization efforts may be beginning to gain traction even as the company continues aggressively rationalizing underperforming locations. Commentary surrounding beef procurement and promotional strategy also provided additional insight into how STKS plans to manage commodity volatility through the remainder of 2026. While beef pricing remains contracted through September 2026, management acknowledged that the broader beef environment remains challenging heading into 4Q26. Rather than relying solely on pricing actions, the company is actively optimizing PMIX and promotional windows by emphasizing alternative cuts and reducing reliance on filet-heavy promotions. This approach could help mitigate future commodity pressure while preserving traffic momentum. Improving traffic trends and loyalty engagement across brands were supported by holiday demand, value initiatives, and seasonal menu innovation. STKS noted that Valentine’s Day 2026 represented a record sales day for the portfolio, while Easter sales increased high single digits y/y across brands, reflecting continued strength in celebration-based dining occasions. Through the first five weeks of 2Q26, the company reported positive comparable sales and transactions, with STK and Benihana generating positive comps and Grill Concepts sequentially improving. Happy hour initiatives, improving lunch traffic, operational enhancements, and encouraging early traction from Benihana’s newly launched “Power Lunch” offering featuring ~$15 price points and a 45-minute service guarantee were cited as key drivers of recent momentum. The Friends with Benefits loyalty program continues to scale, adding over 8,000 organic members weekly since launch, with loyalty members demonstrating higher spend per visit and repeat engagement relative to non-members. STKS also highlighted targeted marketing initiatives for upcoming Mother’s Day and graduation occasions, alongside continued seasonal innovation through quarterly food and beverage menu refreshes across all brands. Consumer demand trends remained broadly stable across markets, although modest softness persisted within Texas, specifically Dallas, due to elevated competitive intensity. Outside of Texas, performance trends remained relatively consistent across markets, while bookings entering Mother’s Day and graduation season remained strong. Reservation books also continued building positively entering 2Q26, supporting confidence in near-term sales guidance and suggesting experiential dining demand remains relatively resilient despite broader macro uncertainty. Traffic-driving initiatives across loyalty, marketing, events, and off-premise channels are becoming increasingly central to the STKS operating story rather than merely supporting comparable sales trends. Targeted marketing, lunch initiatives, and happy hour promotions are contributing directly to traffic growth and guest acquisition. Importantly, recent comparable sales improvement has been driven more heavily by traffic gains than pricing, representing an important distinction in the current restaurant environment. Off-premise and convenience-oriented initiatives also continue gaining traction and may represent an underappreciated longer-term growth opportunity. STKS highlighted strong demand for burger offerings, side items, and Benihana’s burrito-style off-premise products, while takeout and delivery currently remain only a low double-digit percentage of total sales. The company continues targeting higher off-premise mix over time through stronger curbside capabilities, product innovation, and reduced reliance on third-party delivery platforms, positioning off-premise as both an incremental revenue driver and customer acquisition channel. Capital-efficient expansion remains a key strategic focus, with disciplined development spending and a continued emphasis on high-return projects. STKS has two company-owned STK restaurants and one company-owned Benihana restaurant under construction, including an STK in Phoenix, a relocation of STK Downtown NYC, and a Benihana in Seattle. The company reiterated plans to open six to 10 new venues in 2026, while prioritizing projects requiring $1.5 million or less in net capital investment. 1Q26 capex, net of tenant improvement allowances, declined 22% y/y to $10 million, of which $6.5 million was allocated toward new restaurant construction, with the balance supporting existing locations, reflecting a continued focus on disciplined capital allocation and free cash flow generation. Franchise development and portfolio optimization initiatives continued to progress, supported by growing interest in the asset-light Benihana Express format. STKS continued progress on its 10-unit California Benihana and Benihana Express development agreement, while planned franchise and licensed Benihana Express locations in the Florida Keys remain on track. Management highlighted sustained franchise interest in the Benihana Express concept, driven by lower labor intensity, smaller footprints, and lower development costs relative to traditional teppanyaki formats. The format could also become an increasingly important long-term driver of capital-light growth and recurring franchise revenue. In January, the company also relocated its Kona Grill in San Antonio to a smaller-format location and converted a franchise Benihana in Monterey into a company-owned restaurant following the retirement of a long-term franchise partner, with both initiatives performing in line with expectations. Portfolio optimization and conversion initiatives remain ongoing, with management prioritizing operational execution and disciplined pacing of reopenings. STKS continues to convert lower-performing Grill locations into higher-performing STK and Benihana formats, having exited six underperforming Grill Concept locations during 2025 and one additional RA Sushi location in January 2026 that did not meet conversion criteria. The remaining Grill portfolio is expected to generate approximately $10 million in restaurant-level EBITDA and over $100 million in revenue. Five Grill locations were closed in January 2026 for conversion into STK or Benihana units, with construction currently underway and reopenings now expected by year-end 2026 versus the previously discussed July 2026 timeline. The revised timing is driven primarily by operational considerations, including training cycles and the sequencing of opening teams, rather than construction-related delays. Each conversion is expected to require $1-$1.5 million of investment and be EBITDA accretive, with management citing the Scottsdale RA Sushi-to-STK conversion as a proof point, where annualized sales increased by over $4 million to a run rate exceeding $7 million. Underlying profitability improved meaningfully during 1Q26, although preferred equity accretion continued weighing on earnings attributable to common shareholders. Net income attributable to STKS increased to $3.2 million from $1.0 million in the prior-year quarter. However, preferred stock accretion and paid-in-kind dividend expense of approximately $9.4 million resulted in a net loss attributable to common stockholders of $6.2 million, or $(0.20) per share. Adjusted EBITDA growth accelerated meaningfully during the quarter despite elevated marketing, technology, and operational investment spending. Adjusted EBITDA increased 12.1% y/y to $28.8 million from $25.7 million, while operating income increased approximately 30% to $13.9 million from $10.7 million. Importantly, transition and integration expenses declined materially to approximately $0.5 million from $3.7 million in the prior-year quarter as the Benihana integration nears completion. General and administrative expense increased during the quarter as STKS continues investing behind infrastructure, technology, and customer acquisition capabilities to support future scalability. G&A expense increased to $15.0 million from $13.1 million, while adjusted G&A excluding stock compensation increased to $13.9 million from $11.5 million. Adjusted G&A as a percentage of revenue increased to 6.5% from 5.4%, driven by salary inflation, technology investments, AI-related initiatives, audit expense, and elevated marketing investment. Restaurant-level profitability continued improving across the portfolio despite ongoing closure-related disruption and incremental investment spending. Restaurant operating expenses improved 40 bps y/y to 61.7% of restaurant revenue from 62.1%, reflecting labor optimization and improved scheduling efficiency. Restaurant Operating Profit excluding closed Grill locations increased 11% to $39.9 million, while Restaurant Operating Profit margins expanded 100 bps to 19.1%. STK restaurant-level margins expanded 280 bps to 21%, while Benihana restaurant-level margins improved 130 bps to approximately 21%, reflecting improving operating leverage and procurement synergies despite softer traffic at certain STK mall locations. Margin commentary remained constructive despite expected seasonal variability during 3Q26. STKS noted that 3Q historically represents the company’s lowest-margin quarter due primarily to seasonal volume dynamics. Nevertheless, the company maintained confidence in the broader margin outlook given continued momentum in cost of goods sold, procurement initiatives, and operational execution. Management maintained its broader 2026 outlook, with 2Q26 guidance reflecting continued confidence in traffic trends, margin progression, and synergy realization. For 2Q26, STKS guided toward revenue of $202 million-$206 million, consolidated comparable sales growth of 1%-2%, and adjusted EBITDA of $24 million-$26 million. Management also guided toward owned operating expenses of 81%-82% of restaurant revenue and adjusted G&A of $13 million-$14 million. Full-year guidance implies continued EBITDA growth and free cash flow improvement. For CY26, STKS reiterated guidance for revenue of $840 million-$855 million, consolidated comparable sales growth of 1%-3%, and adjusted EBITDA of $100 million-$110 million. Full-year capex guidance remains between $38 million and $42 million, while the company expects to open six to 10 new venues during 2026. Street estimates sourced from TIKR show STKS is expected to generate $848.6 million in revenue in 2026, followed by $916.2 million in 2027. Adjusted EBITDA is estimated to reach $105.8 million in 2026 and $117.5 million in 2027. Balance sheet flexibility improved meaningfully as management prioritized revolver paydown and debt reduction. STKS ended the quarter with approximately $6.6 million in cash and restricted cash alongside approximately $33.7 million available under its revolving credit facility. The company fully paid down its revolver during the quarter following ~$7 million of revolver repayments and ~$2 million of term-loan repayments. Total long-term debt declined to approximately $335 million from $343 million at year-end 2025. Working capital trends and free cash flow generation improved materially during the quarter and remain increasingly important as investors focus on deleveraging and liquidity flexibility. Operating cash flow increased sharply to approximately $21.7 million compared to roughly $9 million during the prior quarter, driven by improved profitability and collections associated with holiday credit card receivables. Credit card receivables declined from $19.5 million at year-end 2025 to $11.8 million during 1Q26, while accounts receivable declined from $15.4 million to $11.0 million. Inventory also declined modestly to $9.4 million from $9.8 million, suggesting improving procurement discipline and inventory management. Interest expense and financing pressure remain meaningful but are beginning to moderate as leverage gradually improves. Weighted-average interest rates improved to 10.2% from 10.9% in the prior-year period, reflecting lower benchmark rates and improving financing conditions. Management also reiterated that the company currently has no active leverage covenant under current revolver utilization levels, which preserves additional liquidity flexibility. Valuation remains attractive. Please note that the following analysis is for illustrative purposes only and does not constitute a stock recommendation, price target, or a buy/sell/hold view. Based on our analysis, STKS appears undervalued within the full-service dining sector. This assessment is supported by multiple approaches, including historical (time-series) valuation and relative comparison against trading peers. While we do not assign a formal price target, the current valuation suggests potential for re-rating as fundamentals improve. Improving traffic trends, expanding margin visibility, and continued balance sheet discipline support a more constructive operating outlook and potential valuation re-rating. Comparable sales and transaction trends turned positive entering 2Q26 across STK and Benihana, suggesting improving underlying demand trends. Momentum in lunch traffic, happy hour initiatives, and loyalty engagement also continued improving during the quarter, while the Friends with Benefits platform continues driving higher repeat engagement and spend per visit. At the same time, contracted beef pricing through September 2026, ongoing procurement synergies, portfolio optimization initiatives, and disciplined cost controls continue improving margin visibility and free cash flow potential. With leverage gradually improving, integration expenses declining, and capital-efficient growth initiatives such as Benihana Express gaining traction, continued execution against these priorities could support further EBITDA expansion, improving free cash flow generation, and potential valuation re-rating over time. P/S Multiple analysis. We analyzed STKS’ NTM P/S multiple and note that the stock is trading at its lowest multiple in the last three years. Current P/S multiple of 0.07x is well below the 3-year mean of 0.23x. As fundamentals strengthen, STKS could see multiple expansion over time. Conservatively, even if the stock was to re-rate to 0.20x P/S, STKS could be valued at $5.4/share, representing significant upside relative to current levels. Peer analysis (relative valuation). Peer valuation analysis also suggests undervaluation. As of 5/7 close, STKS was trading at 5.6x EV/NTM EBITDA, which is a ~40% discount to peer average of 9.4x. Its EV/NTM Sales multiple of 0.7x is also a discount to the industry average of 1.0x, suggesting room for re-rating. Download the Complete Report Here Read Exec Edge’s Initiation on The ONE Group Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected]

Interested in The ONE Group Hospitality, Inc.? Here are five stocks we like better. ONE Group posted modest top-line growth with stronger profitability: Q1 revenue was $212.8 million (+0.8% YoY) while restaurant operating profit rose 11% to $40 million and restaurant operating margin expanded 100 basis points to 19%, driving a 12.1% increase in adjusted EBITDA to $28.8 million. Management highlighted execution and portfolio actions — the loyalty program is adding ~8,000 organic members per week and conversions are proving lucrative (a former RA Sushi converted to STK grew from ~$3–4M to north of $7M on a ~$1M conversion), supporting a plan for 6–10 new openings in 2026 with capital-efficient targets. Balance-sheet and guidance focus: the company paid the revolver to zero, ended the quarter with $6.6 million cash and $33.7 million available on the credit facility, generated $22 million in operating cash flow, and reiterated full-year guidance of $840–855M revenue and $100–110M adjusted EBITDA (Q2 revenue guided to $202–206M, comps +1%–2%). ONE Group Hospitality (NASDAQ:STKS) reported first-quarter fiscal 2026 results showing modest revenue growth and improved profitability, driven by margin gains, cost controls, and ongoing integration and portfolio actions. Management also reiterated its full-year outlook, with an updated expected effective tax rate, while highlighting early second-quarter momentum in both comparable sales and traffic. President and CEO Manny Hilario said the company’s operational initiatives produced “strong financial results,” pointing to year-over-year improvements in operating income and adjusted EBITDA, even as consolidated comparable sales were slightly negative. Total GAAP revenue for the quarter was $212.8 million, up 0.8% from $211.1 million a year earlier, while consolidated comparable sales were -0.3%. → Berkshire Hathaway’s Record Cash Hoard: Why and What's Next? Hilario said U.S. STK posted positive comparable sales of 1.4%, Benihana was flat, and the Grill concepts’ comparable sales were down 4.9%, though he noted it was the Grill concepts’ “strongest quarterly performance since early 2023” and that Grill transactions were positive in the quarter. Restaurant-level profitability improved. Hilario reported restaurant operating profit increased 11% to $40 million and restaurant operating profit margin expanded 100 basis points to 19%. He attributed the margin improvement primarily to lower food and beverage costs tied to “menu optimization, integration synergies, and supply chain efficiencies,” including efforts around beef sourcing. → A Prada Payday: Is AMC Back in Style? CFO Nicole Thaung said company-owned restaurant cost of sales improved to 19.4% of company-owned net revenue from 20.8% a year ago, citing “menu optimization, integration synergies, supply chain initiatives, increased menu pricing,” and favorable mix tied to New Year’s Eve and “our record-breaking Valentine’s Day.” Company-owned restaurant operating expenses improved to 61.7% of net revenue from 62.1%, reflecting labor improvements. Operating income rose to $13.9 million from $10.7 million. Adjusted EBITDA attributable to the company increased 12.1% to $28.8 million from $25.7 million. Net income attributable to The ONE Group Hospitality, Inc. was $3.2 million versus $1.0 million a year ago, while net loss available to common stockholders was $6.2 million, or $0.20 per share, compared with $6.6 million, or $0.21 per share, in the prior-year quarter. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Thaung said the quarter’s revenue growth was driven in part by the company’s fiscal calendar shift, which moved New Year’s Eve into fiscal 2026 and added approximately $8.3 million to revenue. Additional contributions came from new openings and conversions completed in the second half of 2025. Those gains were partially offset by closures of underperforming Kona Grill locations, which reduced revenue by about $1.8 million. Management license, franchise, and incentive fee revenue decreased slightly to $3.5 million from $3.7 million, which Thaung attributed mainly to the exit of a management agreement in Scottsdale, Arizona, after the company converted a former RA Sushi there into a company-owned STK. General and administrative expenses increased to $15.0 million from $13.1 million, driven by “inflation on salaries and bonus, higher audit-related fees,” investments in information technology “specifically AI-related technologies,” and increased marketing. Adjusted G&A excluding stock-based compensation was $13.9 million, up from $11.5 million, representing 6.5% of revenue versus 5.4% a year ago. Transition and integration costs related to the Benihana and RA Sushi acquisition fell to $0.5 million from $3.7 million, which Thaung said reflected the company nearing completion of integration. Hilario outlined progress against four strategic priorities, starting with driving comparable sales through execution. He said Valentine’s Day 2026 was “a record-breaking day” for the portfolio and that Easter sales were up “high single digits” compared with last year. He added that through the first five weeks of the second quarter, the company has positive comparable sales and transactions across brands, citing momentum in STK and Benihana and sequential improvement in the Grill concepts. He pointed to happy hour and returning lunch traffic as drivers, and highlighted growth in the Friends with Benefits loyalty program. Hilario said the company has added “over 8,000 new organic members” per week since launching the program last year, and that loyalty members are spending more per visit than non-members. On growth, Hilario said the company has two company-owned STK restaurants and one company-owned Benihana under construction: an STK in Phoenix, an STK relocation in downtown New York City, and a Benihana in Seattle. The company plans to open six to 10 venues in 2026, prioritizing locations requiring $1.5 million or less in net capital investment. Capital spending net of tenant improvement allowances was about $10 million in the quarter, down 22% year over year, with $6.5 million tied to new restaurant construction. Hilario described this as part of a push for “capital efficient growth and free cash flow generation.” Regarding portfolio optimization, Hilario said the company exited six RA Sushi and Kona Grill locations in 2025, and exited one additional RA Sushi location in January 2026 that did not fit its conversion criteria. He said the remaining Grill locations are “healthy, profitable restaurants,” expected to generate about $10 million in restaurant-level EBITDA and more than $100 million in revenue. Five Grill locations closed on Jan. 5, 2026 for conversion to either Benihana or STK. Hilario said construction is underway, with all five expected to reopen by the end of 2026. In the Q&A, he said the pacing reflects internal resource planning and the desire to open units “without… being negatively impactful to operations.” Hilario also discussed the company’s first conversion example, a former RA Sushi converted to STK in Scottsdale, Arizona. He said the site previously produced about $3 million to $4 million in revenue and is now “north of $7 million,” representing about a $4 million annual increase. The company spent about $1 million on the conversion, which he characterized as a “4x return on sales on the investment.” Management emphasized balance sheet flexibility and debt reduction. Hilario said the company ended the quarter with $6.6 million in cash and restricted cash, and had $33.7 million available under its revolving credit facility. He noted the company repaid $2 million under its credit agreement and $7 million on the revolving facility, bringing the revolver balance to zero. Cash flow from operations was $22 million, up from $9 million in the prior quarter, which Hilario said was driven primarily by increased net income and collections on holiday credit card receivables. Thaung reported interest expense of $9.7 million, roughly flat year over year, and a weighted average interest rate of 10.2% versus 10.9% in the prior-year quarter. In the Q&A, Hilario attributed the lower rate to benchmark rate movements and reiterated that applying free cash flow toward debt reduction is the company’s “number one objective.” For the second quarter of fiscal 2026, Thaung guided to total GAAP revenue of $202 million to $206 million, reflecting expected consolidated comparable sales growth of 1% to 2%. The company expects management license, franchise, and incentive fees of $3 million to $4 million and adjusted EBITDA of $24 million to $26 million. It also forecast company-owned operating expenses of 81% to 82% of company-owned restaurant net revenue, adjusted G&A excluding stock-based compensation of $13 million to $14 million, and pre-opening expenses of $1 million to $2 million. For fiscal 2026, the company reiterated guidance (with an updated effective tax rate), calling for: Total GAAP revenue of $840 million to $855 million, with consolidated comparable sales of 1% to 3% Management license, franchise, and incentive fees of $14 million to $15 million Company-owned operating expenses of approximately 82% to 83% of company-owned restaurant net revenue Adjusted EBITDA of $100 million to $110 million Pre-opening expenses of $5 million to $6 million Effective income tax rate of approximately 10% to 20% Capital expenditures net of landlord allowances of $38 million to $42 million Six to 10 new venue openings On margins, Hilario said the company typically sees seasonal pressure in the third quarter because it is the “lowest volume quarter,” while noting cost of goods sold in the quarter was “the lowest we’ve ever reported for the company.” He added that the company’s contracted beef pricing provides cost certainty through September 2026, while management continues to evaluate options for later periods, including “alternative cuts and promotional windows” to reduce reliance on higher-cost items. Hilario told analysts the first-quarter revenue and comparable sales performance came in slightly below expectations primarily due to lower-than-expected volume at STK locations in malls and timing-related factors such as spring break patterns and an earlier Easter. He also cited regional softness in Texas, particularly Dallas, which he attributed to competition in that market. On franchising, Hilario said the company is seeing “lots of interest,” particularly for Benihana. He highlighted Benihana Express as an attractive franchise model due to what he described as favorable cost of goods, a “predictable and strong” labor profile without teppanyaki table service, smaller footprints, and lower development costs. ONE Group Hospitality Inc is a full-service hospitality company primarily engaged in the development, ownership and operation of upscale restaurant and lounge concepts. The company's flagship brand, STK, combines a modern steakhouse menu with a high-energy lounge atmosphere, offering signature cuts of beef, fresh seafood, sushi selections, craft cocktails and an extensive wine program. ONE Group's concept emphasizes a seamless blend of fine dining and nightlife, catering to guests seeking both culinary excellence and an immersive social experience. Headquartered in El Segundo, California, ONE Group deploys a mixed model of company-owned and franchised locations across multiple markets. The article "ONE Group Hospitality Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

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 DENVER, May 06, 2026--(BUSINESS WIRE)--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 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. 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 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. 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): 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): The following table presents the elements of the quarterly and annual Same Store Sales measure for 2025 and 2026: 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): 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): 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): Restaurant Operating Profit by brand is as follows (in thousands): Restaurant EBITDA by brand is as follows (in thousands): View source version on businesswire.com: https://www.businesswire.com/news/home/20260506456708/en/ Contacts Investors: ICR Michelle Michalski or Raphael Gross (646) 277-1224 [email protected] Media: ICR Seth Grugle (646) 277-1272 [email protected]

Performance was driven by internal strategic initiatives, including the STK barbell strategy and Benihana operational improvements, rather than macroeconomic recovery. Restaurant operating profit margins expanded 100 basis points to 19%, primarily due to a 140 basis point reduction in food and beverage costs from supply chain efficiencies. Management secured contracted beef pricing through September 2026, providing cost certainty and eliminating exposure to U.S. base price fluctuations during an inflationary period. The portfolio optimization strategy involved exiting underperforming growth locations and converting high-potential sites into STK or Benihana units to improve overall returns. STK comparable sales growth of 1.4% was supported by strong performance during celebration holidays like Valentine's Day and Easter. The 'Friends with Benefits' loyalty program is driving higher spend per visit and repeat participation, with over 8,000 new organic members added weekly. Full-year 2026 guidance assumes total GAAP revenues of $840 million to $850 million and consolidated comparable sales growth of 1% to 3%. Management expects to generate positive free cash flow in 2026, prioritizing debt reduction and capital-efficient growth over aggressive expansion. The company plans to open six to ten new venues in 2026, focusing on locations requiring $1.5 million or less in net capital investment. Five growth location conversions are expected to reopen as Benihana or STK units by the end of 2026, with each projected to be EBITDA accretive. Q2 momentum is supported by positive comparable sales and transactions through the first five weeks, driven by happy hour traffic and returning lunch demand. A fiscal calendar shift moving New Year's Eve into Q1 2026 added approximately $8.3 million to the top-line revenue. The company incurred $2 million in lease termination and restaurant closure expenses related to the growth portfolio optimization strategy. Transition and integration costs decreased to $0.5 million as the Benihana and RA Sushi acquisition integration nears completion. Management flagged potential headwinds from gas price volatility impacting supply chains and a challenging competitive landscape in the Dallas market. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the slight miss to unexpected seasonality in mall-based STK locations and shifts in the timing of Spring Break and Easter. The business remains solid across all brands despite these timing-related variances. Q2 is currently seeing positive traffic growth, which management views as a critical indicator of success for their value-oriented initiatives. Value messaging around happy hour and the new $15.95 'power lunch' at Benihana are successfully building traffic. Franchisees are attracted to the smaller footprint, lower development costs, and more efficient labor model that excludes teppanyaki tables. The format maintains premium Benihana product margins while offering a more affordable entry point for partners. Management is exploring alternative cuts and promotional windows to reduce reliance on expensive filets during the fourth quarter. Active dialogues are ongoing to manage the 'tough' beef market as the current contract expiration approaches. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.