| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 212.82 | 0.8% |
| Total Income | 212.82 | 0.8% |
| Expenditure | 198.92 | 0.7% |
| PBT | 4.15 | 356.0% |
| Net Profit | 3.20 | 226.5% |
| OPM | 6.53% | 1.45pp |
| NPM | 1.50% | 1.04pp |
| EPS | -0.20 | 4.8% |
The ONE Group Reports Q1 2026: Revenue Up 0.8% to $212.8 Million
07 May 2026 · 7 May, 2:47 am
Summary
The ONE Group Hospitality, Inc. reported its financial results for the first quarter ended March 29, 2026. Total GAAP revenues increased by 0.8% to $212.8 million. GAAP net income attributable to The ONE Group Hospitality, Inc. increased to $3.2 million from $1.0 million. Adjusted EBITDA attributable to The ONE Group Hospitality, Inc. increased 12.1% to $28.8 million. The company is introducing second quarter financial targets and reiterating its full year financial targets, reflecting the benefits of portfolio optimization, operational improvements, and continued Benihana integration synergies.
Key Highlights
- 1
Total GAAP revenues increased by 0.8% to $212.8 million in the first quarter of 2026, compared to $211.1 million in the same quarter of 2025.
- 2
Consolidated comparable sales decreased by 0.3% based on the same number of days year over year.
- 3
GAAP net income attributable to The ONE Group Hospitality, Inc. increased to $3.2 million from $1.0 million.
- 4
Restaurant Operating Profit increased by 100 basis points to 19.1% of owned restaurant net revenue, excluding Grill Concepts restaurants closed, from 18.1%.
- 5
Adjusted EBITDA attributable to The ONE Group Hospitality, Inc. increased 12.1% to $28.8 million from $25.7 million.
- 6
The company generated $21.7 million in operating cash flow and reduced debt by $9.1 million in the first quarter of 2026.
- 7
Capital expenditures were reduced by 23% year-over-year as the company prioritizes capital-efficient growth and free cash flow generation.
Management Comments
Emanuel “Manny” Hilario
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. 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.”
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