The ONE Group Hospitality (STKS) investor relations material

Executive summary

• Total GAAP revenues for Q1 2026 increased 0.8% year-over-year to $212.8 million, driven by new openings and calendar shifts, partially offset by portfolio optimization closures and a slight decrease in same store sales.

• Operating income rose 30% to $13.9 million, reflecting improved restaurant operating profit and reduced transition costs from acquisitions.

• Net income attributable to the company was $3.2 million, up from $1.0 million year-over-year.

• Strategic priorities include accelerating comparable sales, capital-efficient growth, portfolio optimization, and asset-light expansion through franchise agreements and conversions.

Financial highlights

• Restaurant operating profit rose 11% to $40 million, with margins expanding 100 basis points to 19% of owned restaurant net revenue, excluding closed Grill Concepts restaurants.

• Adjusted EBITDA increased 12.1% to $28.8 million from $25.7 million year-over-year.

• Comparable restaurant sales declined 0.3% year-over-year.

• Net loss per common share improved to $(0.20) from $(0.21) in the prior year.

• Operating cash flow for the quarter was $21.7 million; debt reduced by $9.1 million.

Outlook and guidance

• Q2 2026 GAAP revenues projected at $202–$206 million, with comparable sales growth of 1–2%.

• Adjusted EBITDA guidance for Q2 is $24–$26 million.

• FY 2026 GAAP revenues expected between $840–$855 million, comparable sales growth of 1–3%, and adjusted EBITDA of $100–$110 million.

• Six to ten new venues planned for 2026, with capital expenditures of $38–$42 million and a focus on conversions and capital-efficient projects.

• Five conversions expected by year-end, each requiring about $1 million in capital and anticipated to be accretive to EBITDA.